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
In Flores v. City of San Gabriel, the 9th Circuit Court of Appeals held that payments of cash in lieu of benefits must be included in the regular rate when calculating how much overtime employees are owed under the Fair Labor Standards Act (FLSA).
As a result of new regulations that take effect December 1, 2016, it is likely that some employees who are currently exempt from the overtime requirements of the Fair Labor Standards Act (FLSA) will be reclassified as nonexempt.This Quick Reference chart provides details about the differences in workplace practices regarding employees classified as exempt or nonexempt.
Enhanced to improve the comprehensiveness, organization and scope of coverage.
One of the nation's leading wage and hour authorities, Tammy McCutchen, discusses a new resource now available through XpertHR that will help employers steer clear of trouble with the new Department of Labor overtime rules.
The recent announcement that the minimum salary for overtime-exempt employees will roughly double from $23,660 to $47,476 is attracting nationwide attention. On this podcast, we examine what employers need to do to comply with ComplianceHR's Tammy McCutchen, one of the nation's leading wage and hour authorities.
In Craig v. Bridges Bros. Trucking LLC, the 6th Circuit Court of Appeals joined three other circuits in ruling that an employer has an obligation to exercise reasonable diligence to find out whether its employees are working more than 40 hours in a workweek.
Updated to reflect trade secret protections under the federal Defend Trade Secrets Act, effective May 11, 2016.
Updated guidance to reflect the forthcoming FLSA overtime requirements, announced on May 18, 2016.
Updated to reflect forthcoming FLSA overtime exemption requirements.
HR guidance on complying with federal and state employee overtime laws. Support on following rules and regulations regarding this employment law topic.