Misclassified Paralegals Miss Out On Hundreds of Dollars from Paychecks

Paralegals work long and hard hours to make sure that justice is served for a law firm's clients. Here at Kennedy Hodges, LLP, we know that paralegal work is not easy. Missing a strict deadline established by the court or failing to file an important document could mean the end of an important, valuable case.

Unfortunately, sometimes paralegals are not paid the compensation they deserve, especially for overtime hours that he or she works in a week. One of the most of the common overtime problems that Houston paralegals face usually stems from misclassification under the Fair Labor Standards Act.

Often used as a way for a law firm to save money, paralegals that should otherwise be paid on an hourly basis are paid a salary and told that they are ineligible to receive overtime pay because of the Administrative or Executive Exemptions.

Many law firms get away with this by giving the paralegal a certain title that would reflect supervisory duties, such as "Managing Paralegal" or "Office Manager." But what some employers fail to realize (or neglect to address) is the fact that the FLSA requires that exemptions be decided based on job duties, not job titles.

Let us take, for example, the Professional Exemption. A paralegal would be covered under the FLSA and therefore eligible for overtime, as long as one of the following is true:

1. The company generates more than $500,000 in annual sales or
2. The individual's job duties require him or her to engage in interstate commerce. Examples of interstate commerce include conducting business over an out-of-state telephone call or U.S. mail. Typically in the legal field, this is done by handling an insurance claim.

The other commonly misused classification is the Executive Exemption. This is similar to the Professional Exemption and deems that a paralegal would be entitled to overtime only if all of the following apply:

1. The employee receives a salary of at least $455 per week and
2. The employee's primary duty is to manage a customarily recognized department or subdivision of the company, including determining rates of pay, directing work, handling complaints and
3. The employee's duties include supervising at least two full-time employees or 80 hours of subordinate time per week and
4. The employee has the authority to hire and fire other employees or recommend the hiring, firing, promoting or advancing of other employees

For many paralegals, some of these statements are true, but rarely all of them are. So, any paralegal who feels that he or she is not being fairly compensated should contact an experienced Houston overtime lawyer immediately for a case evaluation.

The best thing you can do for yourself, your family, and your paycheck is to order your free copy of the book,The Ten Biggest Mistakes That Can Hurt Your Wage and Overtime Claim by calling the authors at 888.449.2068 today. You can describe your situation using our online form, and an attorney from Kennedy Hodges, LLP will get right back with you to schedule a free consultation.