Legal Question in Employment Law in Indiana

Placement agency not paying overtime despite receiving overtime from contract?

I work for a company through a placement agency. The agency has contracted me as an exempt employee. However, I have learned that they are in fact paid at a rate of 'time and half' by the company when I work overtime. Basically they're being paid by the contracting company for my overtime but aren't passing it on to me. Certainly this is unethical. Is it illegal?


Asked on 3/04/09, 4:36 pm

1 Answer from Attorneys
Phil Gibbons Gibbons Jones, P.C.

Re: Placement agency not paying overtime despite receiving overtime from contract?

The Fair Labor Standards Act ("FLSA") is the law that determines whether you are exempt from overtime. Exempt status typically requires that you are paid on a salary basis and that your duties fall within one of the categories of exempt jobs. To answer your question regarding whether your pay violates the FLSA, additional information is needed. Many employment law firms, including mine,offer free telephone consulations. I would be happy to speak with you about your situation-- I can be reached at 317.706.1100 or 1.866.706.9020.

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Answered on 3/04/09, 5:23 pm


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