Empowered Employees: Case Highlights
April 2025: Changing Compensation Structure
Employee Inquiry:
“I work hourly as a part-time employee, completing sets of paperwork for my office and speaking to patients who need counsel on the paperwork. My rate is set at $25/hr. Recently, my boss decided to change my pay structure. Instead of paying me hourly, he now wants to pay me $10 per set of paperwork I complete, and he will no longer pay me hourly for the counseling I provide to patients regarding the paperwork. Additionally, he plans to report this new pay structure as a bonus on payroll, which is taxed at a higher rate in New Jersey.
Is this legal?”
How the411HR Helped:
When this employee reached out to the411HR, we took the following steps to help them understand their rights and navigate the situation confidently:
1. Reviewing the Situation
We reviewed the details of the employee’s current compensation structure—$25/hour for both paperwork and counseling—as well as the proposed shift to a per-set payment of $10 and removal of pay for counseling. We also examined the implications of labeling payments as “bonuses,” which can result in higher taxes in New Jersey.
2. Consulting Labor Laws
We informed the employee that under New Jersey labor laws, workers must be compensated fairly for all time worked. Employers cannot simply switch hourly employees to a piece-rate system or remove compensation for essential job duties like patient counseling, without a lawful and transparent process.
3. Identifying Possible Violations
We helped the employee recognize that this change could violate labor laws. Employers cannot arbitrarily reduce pay, exclude critical job responsibilities from compensation, or reclassify wages as bonuses without proper legal and tax considerations. Doing so may constitute wage theft or misclassification.
4. Providing Actionable Steps
We advised the employee on how to professionally address the issue with their employer. This included requesting written clarification, expressing concern about fair compensation, and citing their right to be paid for all hours worked, especially for duties that were previously compensated.
5. Referral to Legal Resources
Given the potential legal risks, we referred the employee to employment attorneys who specialize in wage and hour laws. These experts could provide further legal guidance and, if necessary, represent the employee in taking formal action.
6. Follow-Up Support
We stayed in touch to ensure the employee felt supported, offering additional resources and guidance as they worked through the issue. Our continued assistance helped them move forward with confidence.
The Outcome
With the411HR’s help, the employee gained clarity on their rights, actionable steps for speaking up, and access to legal support—all without compromising their confidentiality or job security.
March 2025: Misclassified Meal Breaks Costing Overtime
“I’m a full-time employee, and I regularly work between 50–55 hours a week. Every day, I power through my shift without taking a lunch break. But I noticed my paycheck always includes a ‘paid lunch’ automatically—whether I take it or not. It’s calculated as part of my regular hours, not overtime. That means I’m missing out on about 2.5 hours of overtime pay every week.
Is that allowed?”
How the411HR Helped:
When this employee contacted the411HR, we took the time to understand the issue and walk her through her rights under federal and state labor laws.
1. Clarifying the Problem
We confirmed that the employee was working 10–11 hours per day, five days a week, totaling well above the standard 40 hours. However, her employer was deducting a daily 30-minute lunch break automatically—even though she never actually took one. These deducted hours were calculated at her regular rate, not overtime.
2. Educating on Overtime Laws
We explained that under the Fair Labor Standards Act (FLSA) and New Jersey state law, employers must pay overtime (1.5x the regular rate) for any hours worked beyond 40 in a week. Additionally, if a meal break is automatically deducted but not actually taken, those 30 minutes are legally considered work time and must be paid accordingly—including overtime if applicable.
3. Identifying Employer Missteps
We helped the employee recognize that her employer was effectively shaving time off her workweek by deducting a meal period she didn’t use. By not tracking actual lunch breaks—or allowing a system to override real hours worked—her employer may have been in violation of both wage and hour laws and recordkeeping regulations.
4. Providing Steps to Take
We coached the employee on how to bring up the issue with her manager or HR department professionally and confidently. We helped her draft a statement requesting a review of her hours and seeking back pay for any overtime lost due to automatic lunch deductions.
5. Referral to Legal Support
Because wage theft—especially involving repeated misclassification of hours—is a serious matter, we referred her to an employment attorney who specializes in wage and hour violations. This gave her access to expert legal advice to explore potential remedies, including retroactive overtime compensation.
6. Continued Support
We stayed connected with the employee to ensure she felt supported and informed throughout the process. Our team provided encouragement and resources to help her advocate for herself—without fear of retaliation or confusion.
The Outcome
With the411HR’s guidance, this employee was empowered to challenge an unfair pay practice and protect her right to full and fair compensation. She gained clarity, confidence, and a clearer path forward—with someone finally on her side.
