Overtime In Kansas: An Overview
Kansas overtime laws are relatively simple and straightforward to understand. Kansas has both a minimum wage law and overtime requirement, however, businesses with fewer than five employees are exempt from both. The federal regulations were set in 1938 under the Fair Labor Standards Act. Kansas overtime pay laws follow those of the FLSA (Federal Labor Standards Act). Same general rules apply to both state and federal laws. Overtime laws in Kansas as in other states require payment of overtime at the rate of one and a half times an employee’s regular rate of pay for all hours worked over forty in a workweek. The workweek is seven consecutive days starting on any day of the week that the employer decides. The law does not require overtime be paid for work on Saturdays, Sundays or holidays, so long as the rate of pay is not reduced the equivalent amount.
Overtime worked in excess of forty hours in a workweek must be compensated at a rate of one and a half times the employee’s regular hourly rate. In Kansas overtime laws define the regular rate of pay as the average of the employee’s compensation. Overtime pay should be calculated separately for each workweek. If the employer pays more time that the law requires, they are not entitled to deduct that amount from overtime pay in future workweeks.
Employers may use any of several common "fluctuating workweek" methods to calculate Kansas overtime pay. Employers are allowed, however , overtime may not be paid in the form of "compensatory time". Compensatory time is a method where hourly employees would receive time off later instead of receiving overtime pay. Whether the employer is public or private, the employee must agree to exchange overtime pay for time off.
While overtime pay is nearly always payable at the rate of one and one half times the regular rate, there are limited exceptions. In some cases, such as those covered by the Motor Carrier Act, overtime must be paid at one and half times the minimum wage. Because motor carrier overtime is based on a statute rather than on the FLSA, there are additional rules.
In most cases, the following examples are exempt from Kansas overtime laws:
Exemptions require strict interpretation and application by the employer of the exception or exemption. If there is no doubt the employee belongs to one of the exempt categories, the employer may retain the exemption. If there is any doubt, however, the employer should err on the side of classifying the employee as nonexempt. If an employee is classified incorrectly, their employer may be responsible for substantial back pay payments of overtime pay. Employees who are paid on a salary basis, for example, will only be classified as exempt if there is certainty they meet the exemption tests. Likewise, employees who hold executive, administrative or professional positions must meet the regular and minimum amount of salary and duties test to be exempt.
Who is Eligible for Overtime Pay?
While most employers are required by both federal and Kansas law to pay employees overtime pay at the rate of one and one-half times their regular rate of pay, certain categories of employees are considered exempt from the overtime pay requirements. In general, patients or sales managers in retail and service industries, outside sales staff, employees who perform administrative functions in a business, and employees who perform work that has to do with manufacturing or production of goods for sale on the premises are all examples of those who are exempt.
Some examples of employees exempt from overtime include: Whether or not an employee is exempt from overtime requirements will depend on the type of business or industry, as well as the job duties that the particular employee performs. In addition, exempt employees are also generally expected to perform some element of management duties, and earn a salary that meets certain minimum criteria. The white-collar exemptions are outlined in the Fair Labor Standards Act (FLSA) as follows: Executive Employees: Employees who customarily and regularly direct/ supervise the work of two or more other employees and who have the authority to hire/fire or make recommendations regarding the promotion/demotion of other employees, who are paid on a salary basis of not less than $455/week, who customarily exercise discretionary authority. Administrative Employees: Employees who perform office or non-manual work for the business who are paid on a salary basis of not less than $455/week and who perform work that is "directly related to the management or general business operations" of the business. Professional Employees: Paid employees who perform work "predominantly intellectual in character" which requires a specialized body of knowledge and includes learned professions such as artists, educators, therapists, physician’s assistants, skilled accountants, and attorneys. Outside Sales Representatives: Compensation only dependent on the amount of sales made or contracts secured.
How to Calculate Overtime Pay
Calculating Kansas Overtime Pay is relatively easy, however, the correct calculation can have a significant impact on your rights and result in substantial liability. In Kansas, overtime is calculated at one and one-half (1.5) times your regular rate of pay for hours worked in excess of forty (40) hours per week.
An employee’s regular rate of pay is determined by calculating the employee’s total pay for the week divided by the number of hours actually worked in that week. For example, if I work 50 hours as a non exempt employee, and my total compensation for that week is $1,450.00, then my regular rate is $29.00/hour ($1,450.00/50 hours). Thus, my overtime rate is $43.50/hour ($29.00 x 1.5). If you are not paid one single lump sum for your work (i.e., if you do not receive a salary) there is very little chance that your employer will make an honest mistake in the calculation. Thus, this process should be relatively easy for any reasonable person to analyze. Two common mistakes that employers sometimes make is failing to include non-discretionary bonuses, commissions and paying you different amounts for different types of work. These actions can significantly increase the amount of overtime you are owed (and can substantially increase the damages owed to you for salary misclassification or missed meal and rest breaks). Below is a summary of these issues, as well as a few others related to calculating overtime pay to assist you in determining your rights.
Common Exemptions From Overtime
Kansas overtime laws allow for some exemptions, similar to the Fair Labor Standards Act federal laws. Currently, there are four main exemptions for overtime (including both minimum wage and overtime pay) under Kansas law:
Executive exemption
To be eligible for the executive exemption, employees must have the following duties:
Administrative exemption
For the administrative exemption to apply, employees must be paid at least $455 per week on a salary or fee basis. The employee’s primary duties must be "directly related to the management or general business operations of [the employer] or the employer’s customers." The employee, therefore, must be performing work that is directly related to the business’ operations. In addition, the employee must exercise discretion and independent judgment with respect to the significant matters of the business. Further, the employee must customarily and regularly direct the work of at least two or more other full-time employees.
Professional exemption
To qualify for the professional exemption, workers must be employees whose primary duty requires knowledge in creative or scholarly fields. A teacher employed as a faculty member of an accredited school does not have to perform at least the standard 35 hours per week, but must instead be compensated on a salary basis and receive total annual compensation equal to at least the compensation earned by a teacher for the school year for full time employment.
The other principal job that qualifies for the professional exemption is that of a physician, lawyer, or a registered or licensed practical nurse. These are the only healthcare professionals that currently qualify for the professional exemption.
Computer exemption
The computer exemption applies to employees who are either computer systems analysts, computer programmers, software engineers or other similarly skilled workers in the computer field. To be exempted, employees must meet the following salary requirements:
Paid at least $455 per week in the form of salary or fee; or
Paid at least $27.63 per hour.
The employee’s duties must include:
The exemptions discussed above are OK as long as other exemptions do not apply.
Claiming Overtime Pay
When contemplating whether an employee has a claim for unpaid overtime, the first question to ask is whether the employee performed work on behalf of the company. This can include the straight time pay plus the overtime premium. Moreover, an employee’s exempt and/or nonexempt status may also be determinative.
Once it is clear that the employee actually performed work for the company for which he/she has not been paid, the next step is for the employee to file a claim for unpaid overtime. In Kansas, an employee alleging a failure to pay overtime wages must file a claim for unpaid overtime with the Kansas Department of Labor Office of Industrial Relations. The claim must be made within three years after the unpaid wages were due. If the obligation to pay overtime wages extends over a period of more than one workweek , wages due shall be computed separately for each workweek and the claim shall be filed within three years after the end of the last workweek in which the unpaid wages were due and unpaid.
It is important to note that the Kansas Department of Labor requires a specific amount of information in order to process an employee’s claim. Specifically, the Kansas Department of Labor requires the following information in order to process an employee’s claim:
- (1) Name, address and telephone number of the claimant;
- (2) Name, address and telephone number of the employer;
- (3) Number of employees employed;
- (4) Period during which unpaid wages was earned;
- (5) Amount of money in dispute;
- (6) Salary or hourly wage at which the claimant is or was employed; and
- (7) A denial of payment of the wages in dispute.
Recent Developments In Kansas Overtime Law
Kansas Employers: This guide is for you. Understanding Kansas Overtime Laws will help you through the grey areas of overtime, including exceptions for which Kansas employers can be liable.
Unbeknownst to many people, Kansas overtime laws are not the same as Federal (FLSA) overtime laws. The minimum wage is higher at $7.25, but this does not necessarily make things better for Kansas employees.
There have been some changes in Kansas overtime law over the last couple of years.
In July 2021, several updates were passed by Kansas lawmakers. These bills impact employees of school districts, certain public employees, and workers contributing to the Kansas Public Employees Retirement System (KPERS). There were two 2021 laws of interest to employees working overtime.
The first law allows teachers and other key teachers to receive supplemental pay. Supplemental pay is now included in FLSA calculations, effectively increasing the base salary to account for the supplemental salaries.
The other law of interest to Kansas overtime laws is H.B. 2079. H.B. 2079 allows certain emergency responders additional time to file FLSA claims. Those impacted by this new law have a full three years to file claims with DOL. Those who previously contacted lawmakers for a "blackout" period will now be able to file claims.
The federal government also recently made changes that impact all Kansas employees. In 2019, restrictions were removed from most Federal minimum wage and overtime law. For example, only employees receiving less than $23,660 per year qualify for minimum wage and overtime under the Federal law. Regardless of status, Kansas employees must be paid state minimum wage ($7.25).
Most employees working in Kansas are entitled to Kansas overtime for hours over forty. Exceptions do exist. Some days, there are extreme conditions, like inclement weather. These conditions allow employers to abandon the 40-hour minimum. When this happens, employees might be entitled to Kansas overtime.
Employer Rights And Obligations
The fundamental principle behind the FLSA is that all non-exempt employees are entitled to a minimum wage for all hours worked and overtime compensation for all hours worked over 40 in a week. However, only work above 40 hours per week triggers overtime. In addition, for a workweek that contains more than 40 hours, an employer can not average a worker’s hours over two or more workweeks to avoid paying overtime for a particular week. For example, if an employee works 50 hours in one week and 30 the next for a total of 80 hours over a two-week pay period, the employer must pay the 10 hours of overtime for the week when the worker worked 50 hours, even if the employee ended up working 80 hours total for the two-week period. A Kansas employer may not alter the rules to suit its preferences, but must keep accurate time and pay records. In addition, the Commission, a state agency responsible for enforcing the KS Whistleblower Act, requires employers to maintain certain records with specified information and records with the name, address, and all wages paid in the financial records of the business .
Kansas employers should also ensure that workers are properly classified to avoid costly administrative fines. For example, a recent Supreme Court ruling has allowed workers in "highly technical" job positions to be exempt from overtime provisions due to the specialized knowledge required to perform their work. If this classification is determined to be false, it can result in civil penalties, back pay for overtime payments (including interest), and reimbursement for attorney fees for the employees. The two primary types of exemptions include:
However, the above exceptions apply only when the employee meets the following criteria:
Notably, in Kansas, workers can sue their employer for unpaid wages relating to overtime. The KS Whistleblower Act also prohibits employers from discriminating against an employee for complaining about an unlawful practice. This protection also applies to individuals who provide testimony.