Overview: Overtime laws are simple, right? When employees work more than 40 hours in a week, you pay them one and a half times their regular rate of pay, right? An employee who earns $10 an hour must be paid $15 an hour for every hour after 40, right?
While that general rule holds true in most cases, there are many variations that can complicate matters quickly. For example, what if an employee receives a bonus or a commission? In some cases, those payments must be factored in to the regular rate of pay. Or, what if an employee performs different jobs at different rates of pay for the same employer?
Also, not all employees need to be paid overtime on the basis of a 40-hour workweek. Certain unionized employees, medical care providers, police and firefighters can be paid according to alternative work periods as long as 28 days.
In addition, overtime laws vary among the states so it's critical that an employer follow state law when calculating employee overtime.
Trends: Employees continue to file, and win, lawsuits seeking unpaid overtime at a rapid pace. At the same time, the federal government and state labor agencies are enforcing overtime laws more aggressively than ever. There appears to be no end in sight to this trend, and employers should remain vigilant in complying with overtime laws.
Author: Michael Cardman, Legal Editor
Multistate employers face the challenge of complying with not only federal laws, but also differing state and local laws. This section highlights some of the states' differences in terms of preemployment testing and background checks, noncompetition and nonsolicitation agreements, and discrimination, pay and leave rules.
In-depth review of the spectrum of California employment law requirements HR must follow with respect to overtime.
This Quick Reference chart describes state overtime requirements. Many states have overtime requirements that are for all intents and purposes the same as those of the federal Fair Labor Standards Act (FLSA) - time and a half for all hours worked beyond 40 in a workweek. Some states have no overtime requirements. Other states have unique overtime requirements that differ from those of the FLSA.
Two sections of the Employment Law Manual and the State Overtime Variations Quick Reference Chart have been updated to reflect a new law that requires California employers to pay overtime to personal attendants.
Joint enforcement actions taken by the U.S. Department of Labor's Wage and Hour Division (WHD) in cooperation with state labor agencies continue to bear fruit.
Employees of the uniform services provider had alleged that the company's policy of rounding their punch-in and punch-out times to the nearest 15 minutes, combined with its strict attendance policy in which employees are disciplined for punching in more than five minutes late, resulted in employees being underpaid by 30 to 40 minutes per pay period.
A new law that will require employers operating in California to pay overtime to personal attendants has resulted in new entries in the Legal Timetable and in updates to the Employment Law Manual.
Starting January 1, 2014, personal attendants will be owed one and one-half times their regular rate of pay for all hours worked beyond nine hours in any workday and for all hours worked beyond 45 hours in a workweek.
HR guidance on complying with federal and state employee overtime laws. Support on following rules and regulations regarding this employment law topic.