HR Support on Complying with Overtime Laws

Editor's Note: Paying for overtime - not as easy as it sounds.

Michael CardmanOverview: 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

Latest items in Overtime

  • Determine How Much Overtime an Employee Is Owed

    Type:
    Liveflo

    Use this workflow to determine how much overtime an employee is owed.

  • Determining How Much Overtime an Employee Is Owed: New Liveflo Workflow Published!

    Date:
    02 September 2015
    Type:
    Editor's Choice

    XpertHR's innovative Liveflo Tool now includes a workflow to help an employer determine how much overtime an employee is owed.

  • Illinois Adds Overtime Exemption for Unionized Employees on Alternate Schedules: Employment Law Manual Updated, Legal Timetable Entry Added

    Date:
    18 August 2015
    Type:
    Editor's Choice

    Effective January 1, 2016, members of a bargaining unit recognized by the Illinois Labor Relations Board whose union has contractually agreed to a 1040/2080 alternate shift schedule will be exempt from the state's overtime requirements.

  • Date:
    18 August 2015
    Type:
    Legal Timetable

  • Multistate Employer: Federal

    Type:
    Employment Law Manual

    This section helps HR professionals manage challenges that come with operating in multiple states, notably complying with differing state and key municipal laws, and addresses the pros and cons of having a centralized or decentralized HR department. Trends currently affecting multistate employers are identified, such as same-sex marriage laws and tracking various state leave laws, are discussed.

  • Salary Basis Policy

    Type:
    Policies and Documents

    An employer may use this policy to ensure they will meet the requirements of the "safe harbor" provision of the Fair Labor Standards Act (FLSA). Under the "safe harbor" provision, employers that inadvertently make improper deductions from the pay of exempt employees can shield themselves from overtime liability if they adopt a salary basis policy and take other steps.

  • Salary Basis Test

    Type:
    Employment Glossary

    Employment glossary definition of Salary Basis Test.

  • Overtime Handbook Statement: California

    Type:
    Employee Handbooks

    California employers that must comply with the Fair Labor Standards Act (FLSA) and seek to address the circumstances under which employees classified by the employer as nonexempt will receive the overtime premium should consider including this model policy statement in their handbook.

  • Overtime Handbook Statement: Colorado

    Type:
    Employee Handbooks

    Colorado employers in the retail and service, commercial support service, food and beverage or health and medical industries seeking to educate employees, including supervisors, about when employees may be entitled to premium pay for overtime in accordance with the Colorado Minimum Wage Order 30 should consider including this model policy statement in their handbook.

  • Overtime Handbook Statement: Nevada

    Type:
    Employee Handbooks

    Nevada employers seeking to educate employees, including supervisors, about entitlements to overtime pay under Nevada law should consider including this model policy statement in their handbook.