What are the overtime laws in New Jersey?
If you believe that you have not received the compensation that you deserve, the attorneys at Swartz Swidler can offer some guidance to you.
When you have a job in New Jersey, you should be fairly compensated for your work. Many workers in the state are entitled to receive overtime pay at a rate of time-and-one-half times their regular pay when they work more hours than 40 in one week. Your right to receive overtime pay will depend on your job duties and the type of business in which you work. If you believe that you have not received the compensation that you deserve, the attorneys at Swartz Swidler can offer some guidance to you.
In New Jersey, the state’s overtime law can be found at N.J.S.A § 34:11-56a4. The federal law that provides overtime compensation is the Fair Labor Standards Act of 1938. These laws define which workers are entitled to overtime compensation and how it is calculated.
For hourly workers, overtime is calculated at time-and-one-half the regular hourly rate for every hour that is worked beyond 40 hours in a workweek. Overtime for people who receive hourly pay plus commissions or bonuses is calculated a little differently. The regular rate is first calculated by taking the worker’s total hours times his or her hourly rate. The equivalent of a week’s worth of commissions or bonuses is added to the week’s worth of the hourly rate. Then, for the overtime hours, half of the calculated regular rate is paid.
Workers who receive a salary and who are entitled to overtime have their regular rate calculated by dividing the salary by the number of hours that the salary is meant to pay for. If the person’s regular hours are less than 40 in a week, the regular rate is then added for each hour that was worked up to 40. Hours that were worked in excess of 40 are then calculated at time-and-one-half. For workers whose salary is meant to compensate them for 40 hours in a week, time-and-a-half is paid for the hours that exceed 40.
People who are not entitled to overtime compensation
There are certain types of workers who are not entitled to receive overtime pay, including the following:
- Most railroad employees
- Most truck drivers
- People who work in outside sales
- People who meet the federal salary level test
- Supervisory workers who have a primary duty of maangement
New Jersey’s overtime laws
In New Jersey, the law requires that nonexempt workers are paid one-and-one-half times their regular hourly rate for all hours that they work beyond 40 in a week. Overtime pay is not required when workers work more than eight hours in one day. The state uses the same exemptions that are delineated in the FLSA.
Exemptions from overtime laws
A number of factors have to be examined when determining whether or not a worker is an exempt employee. If the worker is a professional, administrative or executive employee, he or she may be exempt from overtime compensation rules. Employers have to meet the two-pronged test in order to prove that their workers are truly exempt.
There is a salary test that must be met. The salary must exceed the required federal minimum of $455 per week. If the salary test is met, the job duties test must be met. This is satisfied by the work that is actually performed regardless of the job title.
If you have not received the overtime pay that you deserve, it is possible for you to recover it. Contact the law firm of Swartz Swidler to learn more about your potential rights to overtime compensation.