Overtime Eligibility and Misclassification Issues

At Fidlon Legal, we help Atlanta employees fight back when employers deny overtime pay through unlawful misclassification practices. The Fair Labor Standards Act (FLSA) requires non-exempt employees to receive overtime pay at time-and-a-half for every hour worked over 40 in a week. Unfortunately, many Georgia workers are incorrectly told they are “exempt” from overtime or labeled as “independent contractors” when, in reality, they should be receiving overtime wages.

If you live or work in Atlanta - or anywhere in Georgia - and suspect your employer has misclassified you, we can help.

Misclassification occurs when an employer labels a worker as:

• Exempt (not entitled to overtime), when they legally should be non-exempt, or
• An independent contractor, when they are legally an employee

Both types of misclassification can deny workers time-and-a-half overtime pay.

Under the FLSA, to be lawfully classified as “exempt,” an employee must:

1. Be paid on a salary basis,
2. Earn at least the minimum salary threshold (currently, $684 per week), and
3. Perform duties that match a recognized exemption.

Failing any of these three requirements = non-exempt, meaning overtime pay is required.

1. Executive Exemption

Employees must:

• Manage the business or a department
• Regularly direct at least two full-time employees (or their equivalent)
• Have real authority in hiring/firing and employment-related decisions

Common illegal uses of the executive exemption:

• Assistant managers who spend most of their time stocking shelves or serving customers
• Shift leads who supervise “on paper” but mainly do manual labor
• Retail managers who have no real authority over hiring or discipline

2. Administrative Exemption

Applies to employees who:

• Perform office or non-manual work
• Exercise independent discretion and judgment on significant matters
• Support back office business operations, not production

Frequently misclassified roles:

• Office coordinators
• Customer service representatives
• HR assistants
• Claims processors
• Inside sales employees

If your job is heavily scripted or routine, you are probably non-exempt.

3. Professional Exemption

Covers “learned professionals,” such as:

• Lawyers, CPAs, engineers
• Doctors, nurses (depending on role)
• Teachers

Common employer mistakes:

• Calling technicians “professionals” without a qualifying degree
• Treating IT or medical techs as “professionals” based on experience alone

4. Computer Employee Exemption

Often abused in Georgia’s tech and logistics industries.

Only applies if the worker:

• Is paid salary or high hourly rate (currently $27.63 per hour) and
• Has duties such as systems analysis or software engineering

Does not include:

• Help desk employees
• IT support technicians
• Data entry staff
• Network cabling / field techs

Many Atlanta-area IT workers are misclassified under this exemption.

5. Outside Sales Exemption

Applies only if the employee:

• Regularly works outside the employer’s place of business, and
• Makes actual sales, not merely promotional work

Misclassification examples:

• Sales employees who perform most work from home or the employer’s office
• Inside sales reps
• Commissioned employees who do not regularly travel to customers

Labeling someone a “1099 contractor,” or paying them as such, does not make it true legally.

Under the FLSA, courts apply the economic realities test, looking at:

• Level of employer control
• Opportunity for profit/loss
• Worker’s investment in tools and equipment
• Permanency of relationship
• Whether the work is integral to the company’s business

If the employer controls your schedule, work process, and performance, you are most likely an employee, not a contractor.

We frequently see misclassification in:

• Restaurant and hospitality workers
• Retail assistant managers
• Logistics workers and delivery drivers
• Construction workers and day-rate employees
• IT support and helpdesk staff
• Sales representatives
• Medical and dental assistants
• Administrative assistants

Misclassified workers may lose:

• Overtime pay (time and a half)
• Minimum wage (if day-rate or flat-rate pay is too low)
• Meal/rest break compensation
• Travel and training time pay
• Retirement plan contributions
• Health benefits
• Workers’ compensation protections

Under the FLSA, misclassified employees can recover:

• Unpaid overtime
• Liquidated damages equal to the unpaid overtime (doubling the recovery)
• Attorney’s fees and costs

Fidlon Legal handles misclassification cases through:

1. Case Evaluation

We review job duties, pay records, schedules, and communications.

2. Determining Proper Classification

We apply DOL regulations, FLSA case law, and Georgia-specific court interpretations.

3. Calculating Damages

We determine unpaid overtime using:

• Salary-to-hourly conversions
• Regular rate calculations (including bonuses/commissions)
• Reconstructed time records when employers fail to maintain them (allowed under the law)

4. Negotiation or Litigation

Many cases settle before litigation. If needed, we file in federal court and pursue:

• FLSA collective actions (if multiple employees are affected)
• Individual lawsuits
• DOL complaints (where appropriate)

You may have a claim if:

• You are paid a salary but work more than 40 hours
• Your “manager” title does not match your real responsibilities
• You spend most of your time doing the same work as hourly employees
• You perform manual labor or routine tasks
• You have no real authority over hiring/firing
• You were hired as a “contractor” but work like an employee

While Georgia has no state overtime statute, federal FLSA rules apply to nearly all Georgia employers.

Georgia federal courts have decided may misclassification cases involving:

• IT workers
• Assistant managers
• Day-rate construction workers
• Logistics and warehouse staff

A local attorney who knows how judges in the Northern District of Georgia treat these claims gives you a significant advantage.

• We focus heavily on overtime and wage-hour law
• We have deep experience with misclassification litigation
• We understand how Georgia courts evaluate exempt/non-exempt status
• We build strong cases even when employers lack proper records
• We handle both individual cases and collective actions for groups of employees
• We fight back against employer retaliation for asserting your rights
• We offer free consultations and contingency-fee representation

If you believe your employer in Georgia has misclassified you as exempt or denied you overtime pay or minimum wages, it’s important to act quickly. Wage and hour claims have strict time limits, and every week that passes could mean lost wages.

Contact our leading Atlanta overtime lawyers today for a confidential free case evaluation. We’ll explain your rights under the FLSA, evaluate your case, and help you fight for the compensation you deserve.