FLSA Violations in Kentucky: When Your Employer Owes You Overtime

The Fair Labor Standards Act (FLSA) is the federal law that establishes minimum wage, overtime pay, and recordkeeping requirements for most American workers. Despite being on the books since 1938, FLSA violations remain widespread — and Kentucky workers are frequently affected. If your employer is not paying you overtime for hours worked over 40 in a workweek, you may have a claim.

The Basic Overtime Rule

Under the FLSA, non-exempt employees must be paid at least one and one-half times their regular rate of pay for all hours worked in excess of 40 hours per workweek. Kentucky’s own overtime law (KRS 337.285) mirrors this federal requirement. The workweek is a fixed, recurring period of 168 hours — seven consecutive 24-hour periods. It does not have to coincide with the calendar week, but it must be consistent.

Overtime is calculated on a workweek basis, not a pay period basis. If your employer pays biweekly, they cannot average your hours over two weeks — 50 hours in week one and 30 hours in week two does not average out. You are owed 10 hours of overtime for week one.

Who Is Exempt from Overtime?

Not all employees are entitled to overtime. The FLSA provides several exemptions, and employers frequently rely on them — sometimes correctly, sometimes not. The most common exemptions are the “white collar” exemptions for executive, administrative, and professional employees. To qualify for these exemptions, the employee must generally be paid on a salary basis at a rate of at least the specified minimum (currently $684 per week under the 2019 rules, though proposed increases may change this threshold), and the employee’s primary duty must meet specific criteria defined by Department of Labor regulations.

The executive exemption requires that the employee’s primary duty is managing the enterprise or a recognized department, they regularly direct the work of two or more employees, and they have authority to hire and fire. The administrative exemption requires office or non-manual work directly related to management or general business operations, with the exercise of discretion and independent judgment on significant matters. The professional exemption covers work requiring advanced knowledge in a field of science or learning, customarily acquired by a prolonged course of specialized education.

Common FLSA Violations

Misclassification: The most common violation is misclassifying non-exempt employees as exempt to avoid paying overtime. An employee’s job title does not determine their exempt status — what matters is their actual duties and how they are paid. Calling someone a “manager” does not make them exempt if they spend most of their time performing the same work as their subordinates.

Off-the-clock work: Requiring or permitting employees to work before clocking in, after clocking out, or during unpaid meal breaks is a violation if the employer knows or should know the work is being performed. Checking emails at home, setting up equipment before shift start, and working through lunch are all compensable time.

Improper deductions: Making deductions from a salaried exempt employee’s pay for partial-day absences can destroy the salary basis and make the employee eligible for overtime. The rules around permissible deductions from exempt employees’ salaries are strict and technical.

Independent contractor misclassification: Treating workers as independent contractors when they are actually employees under the FLSA deprives them of overtime protection. The FLSA uses an “economic reality” test that looks at factors such as the degree of control the employer exercises, the worker’s opportunity for profit or loss, and the permanency of the relationship.

Remedies Under the FLSA

An employee who proves an FLSA violation can recover the amount of unpaid overtime wages, an equal amount as liquidated damages (effectively doubling the recovery), and reasonable attorney’s fees and costs. The liquidated damages provision is a significant deterrent — an employer who fails to pay $10,000 in overtime can end up owing $20,000 plus the employee’s attorney’s fees.

Statute of Limitations

FLSA claims must be filed within two years of the violation for non-willful violations, or three years for willful violations. A violation is “willful” if the employer knew or showed reckless disregard for whether its conduct violated the FLSA. Because the limitations period runs from each individual pay period, every week that passes potentially eliminates a week of recoverable damages.

Collective Actions

The FLSA allows employees to bring collective actions — similar to class actions — on behalf of themselves and other similarly situated employees. If your employer’s overtime practices affect multiple workers, a collective action can increase the pressure on the employer and reduce the litigation cost for each individual employee.

If you believe your employer is not paying you the overtime you are owed, Buckles Law Office can evaluate your situation. Call (859) 225-9540.