Top 5 Ways to Know If You Are Being Paid Correctly

When is the last time that you looked closely at your paycheck?  If it has been a while (over 3 months), it is worth another look to make sure that you and your co-workers are being paid correctly.  Here are five questions that you can ask yourself when you take that closer look:

1. Am I receiving the overtime that I am owed?

The first step in understanding whether you are being paid correctly is to understand whether your position is exempt or nonexempt.  These are just legal words that mean that you are being paid a salary or hourly.  If you are being paid as exempt (i.e. on a salary), three things must be true:

• Your salary must be at least $58,656;
• Your employer cannot dock your pay (or deduct from your salary) for partial day absences; and
• Your job duties must meet the legal standards to be exempt.  Most often, employers rely on exemptions that require that your primary job duties involve the exercise of independent judgment and discretion on matters of significance.  In plain English, these legal terms just mean that if you are doing routine work, work where you apply strict guidelines set by someone else, or work that is similar to your hourly-paid co-workers, and you are not calling the shots on things that involve a lot of money, then you are probably entitled to overtime.

If you are being paid on a salary, and any of the factors above are not true, then you are likely entitled to overtime.  

2. Am I being paid at the right rate?

Everyone knows that overtime is paid at time and a half, right?  Yes and no.  Of course, it is correct that overtime is paid at 1.5 times your hourly rate for all hours that you work over 40 hours, but the real question is what rate your employer is multiplying by 1.5 to get your overtime rate?  Oftentimes employers will just multiply your base rate by 1.5 to get your overtime rate.  But the law has a different way of calculating your overtime rate.  Your overtime rate must factor-in all non-discretionary compensation.  So, your overtime rate must factor-in shift differentials, production bonuses, holiday pay, commissions, and other categories of pay that your employer has promised you.  So, if your employer is not factoring-in these additional categories of pay into your overtime rate, then you and your coworkers are likely entitled to additional pay.

3. Is all of my work time being captured and paid?

Most employers are good at paying you for all of the time from when you clock-in until you clock-out.  But oftentimes that does not capture all of your work time.  Ask yourself whether all of your time is being captured and paid?  Here are some example scenarios where you may be shorted:

• You may be expected to answer calls or check e-mails before work or in the evening.  
• Your employer may require you to check an app on your phone for communications, announcements, or training purposes.  
• You may have to stop on the way to work to pick up materials before you are clocked-in at a jobsite.  
• Your employer may automatically deduct for a lunch break but require you to keep working for part of the time.  
• Your employer may pay you based on your scheduled hours, without adjusting your pay when you are required to arrive early or stay late.

These are all ways that an employer may be shortchanging you on the amount of hours that you are being paid.

4. Am I being paid fairly?

The law does not always require that you are paid fairly, but here are some circumstances where it does:

• If you are being paid less than minimum wage, which is $15.92/hr in New Jersey and $7.25/hour in Tennessee.
• If you are being paid less than the prevailing wage rate on a government job.
• If you are being paid less than your co-worker who is not in the same protected classes as you are, such as race, gender, gender identity, national, origin, religion, disability, pregnancy, etc., and there is no explanation for the difference in pay based on your job duties or experience.
• If you are a temp employee in New Jersey and you are not being paid equivalent to the company’s regular employees, or not being compensated for equivalent benefits.

5. What is being taken out of my check?

This one can get complicated, but you may have a claim if your employer charges you (by deducting from your pay) for uniforms, tools necessary to perform your job, parking or transportation fees, penalties for production or quality issues with your work, or cash shortages.  Basically, if your employer is deducting from your pay for anything other than taxes, benefits, or retirement contributions that you elected, it is worth a closer look to see if your employer is on shaky legal ground.

Next Steps

If the answer to any of the above questions leads you to question whether you are being paid correctly, and you want to explore your legal options in New Jersey or Tennessee, give Bodzy Law a call at 866-215-6060.  We are glad to schedule a free consultation and talk it through with you.