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
Updated to reflect information on a Connecticut Supreme Court ruling limiting the use of the fluctuating workweek method of calculating overtime.
The fluctuating workweek method of calculating overtime also may not be used for delivery drivers or for sales merchandisers, the Connecticut Supreme Court ruled in Williams v. General Nutrition Ctrs., Inc.
Updated to reflect forthcoming requirements under the Oregon scheduling law.
Updated to reflect an amendment to Oregon's daily overtime requirements, effective August 8, 2017.
Updated to include a forthcoming amendment regarding the overtime requirement for employees of seasonal amusement and recreational establishments.
Updated to reflect forthcoming local overtime requirements under the New York City Fair Work Practices ordinances.
Updated to reflect new quasi-overtime requirements under the Seattle Secure Scheduling Ordinance, effective July 1, 2017.
Updated to incorporate withdrawal of a DOL administrator interpretation on joint employment.
The US House of Representatives has passed a bill that would amend the Fair Labor Standards Act (FLSA) to allow private-sector employers to offer compensatory time off instead of cash for overtime hours.
HR guidance on complying with federal and state employee overtime laws. Support on following rules and regulations regarding this employment law topic.