Work is anything but easy. And when you reach the end of a grueling week, the knowledge that you have a big paycheck coming your way can be all the motivation you need to stay focused. So when you work more than 40 hours in a single workweek, you need to make sure you receive the proper overtime compensation if you qualify. While it typically depends on the job you have in New Jersey, overtime wage laws cover both salaried and hourly employees. Taking the time to understand the overtime laws in the Garden state can help make sure you receive full compensation for the hours you work.
Overtime Law Summary in New Jersey
New Jersey overtime laws are highlighted in the chart below.
- Fair Labor Standards Act of 1938 (FLSA)
- NJ Rev. Stat. Sec. 34:11-56a4 (Overtime Compensation)
|Methods For Overtime Calculation:
- Hourly Employees: 1.5 x Normal pay rate for all hours above 40 in a single workweek.
- Hourly Employees with Plus Bonus and/or Commission: To determine the regular rate, take the total hours worked multiplied by the hourly rate, then add the workweek bonus/commission. Next, divide by the total hours in a single workweek. Finally, pay half of the adjusted rate for every hour of overtime.
- Salary Employees: To determine the regular rate, take the salary and divide by the number of hours the salary is supposed to cover.
- Add the regular rate for each hour up to 40 hours if the hours total less than 40. For all hours after 40, 1.5 x the regular rate.
- Pay 1.5 x the regular rate for each hour over if the total hours worked is above 40.
- Not entitled to overtime pay are the following types of employees:
- Most Railroad Workers
- Most Truck Drivers
- Outside Sales Employees
- Supervisory Employee (Management as Primary Duty)
- Those Who Fall Under the Salary Level Test (Pay Over Federally Determined Wage)
|Wage Complaint Filing Process
- File a Complaint to the U.S. Dept. of Labor
- File a Wage Claim to the New Jersey Dept. Of Labor
Note: New legislation, high court rulings (federal court decisions included), ballot initiatives, and other influences can change state laws. Please refer to a qualified attorney or complete your own research to verify the laws in your state to ensure accuracy.
What Are the Overtime Laws in New Jersey?
While New Jersey Law does not require overtime pay for working more than eight hours in a single day, it does require overtime pay for any hours worked over 40 in a single workweek. Employers must pay nonexempt employees 1.5 x their standard pay rate for each additional hour over 40.
New Jersey follows the same standards as the Fair Labor Standards Act (FLSA) of 1938 in terms of classifying exempt employees. This means that not all employees in New Jersey qualify for overtime pay. The FLSA is a federal law designed to establish a standard for how employers treat and pay employees.
Who Qualifies as Exempt?
Understanding which types of employees are exempt from federal and state overtime laws is complicated. Administrators, executives, and professional employees all classify as exempt. There is an assessment to figure out if an employee is exempt from overtime pay involving an analysis of both salary and duties.
A duties test involves looking at the type of work that the employee completes concerning his or her “job title.” An employee meets the salary test if they are paid a set amount for work each week without any deductions based on the quality or quantity of work. Also, they must be paid a federally required minimum of $455 in 2017.
Understanding Wage Laws
Here are a few additional resources to look into if you still have questions about overtime laws in New Jersey:
- Federal Wage Law: The Fair Labor Standards Act
- New Jersey Employment Laws
- Official State Codes
- U.S. Labor Code
Do You Think You Have a Case? Contact Lemberg Law for Counsel
If you feel that an employer has taken advantage of you or someone you care about, please get in touch with the Lemberg Law legal team. Complete our form for a FREE case evaluation, or call 475-277-2200 NOW. You may be entitled to compensation for damages, injuries, or lost wages for Federal and state wage law violations.