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HR Support on Complying with Overtime Laws

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

Michael CardmanOverview: Overtime laws seem simple. When employees work more than 40 hours in a week, their employer must pay them one and a half times their regular rate of pay. So an employee who earns $10 an hour must be paid $15 an hour for every hour after 40 ...

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

New and Updated

  • Overtime: Federal

    Type:
    Employment Law Manual

    Updated to reflect the opening of the public comment period on a proposed regulation that would revise and clarify the responsibilities of joint employers.

  • DOL Proposes New Test for FLSA Joint Employment

    Date:
    April 1, 2019
    Type:
    News

    The DOL said the existing joint employment regulation needs to be updated because it does not explain what it means to be "not completely disassociated" when an employer employs an employee to work a set of hours in a workweek, and that work simultaneously benefits another employer.

  • DOL Plans to Allow Employers to Exclude Certain Perks From Overtime Calculations

    Date:
    March 28, 2019
    Type:
    News

    The DOL intends to clarify that the cost of providing wellness programs, onsite specialist treatment, exercise opportunities, employee discounts on retail goods and services, and certain tuition benefits may be excluded from an employee's regular rate of pay.

  • Podcast: What the Proposed Overtime Rules Mean For Employers

    Date:
    March 25, 2019
    Type:
    Podcasts and Webinars

    Former DOL Wage and Hour Administrator Tammy McCutchen discusses why time is of the essence in responding to the proposal to raise the minimum salary for overtime-exempt employees to $35,308.

  • Preparing for the Proposed FLSA Overtime Regulations

    Type:
    Editor's Choice

    Updated to reflect the opening of the 60-day public comment period following the publication of proposed rules in the Federal Register, effective March 22, 2019.

  • Estimating Compensation Costs for Salaried Exempt Employees

    Date:
    March 14, 2019
    Type:
    Editor's Choice

    Proposed regulations from the US Department of Labor projected to take effect January 2020 would raise the minimum salary for most employees exempt from the overtime requirements of the Fair Labor Standards Act (FLSA) from $455 per week to $679 per week. This calculator can help an employer estimate the costs of different options for compensating employees who are currently classified as exempt but are paid a salary of less than $679 per week.

  • Overtime Handbook Statement

    Type:
    Employee Handbooks

    Updated guidance to reflect proposed regulations relating to the Fair Labor Standards Act overtime exemption requirements.

  • Salary Basis Policy

    Type:
    Policies and Documents

    Updated to reflect proposed regulations that would update and revise the Fair Labor Standards Act (FLSA) overtime exemption requirements.

  • Multistate Employer

    Type:
    Employment Law Manual

    Updated to reflect proposed regulations that would update and revise the Fair Labor Standards Act (FLSA) overtime exemption requirements.

  • Salary Basis Test

    Type:
    Employment Glossary

    Updated to reflect proposed regulations that would update and revise the Fair Labor Standards Act (FLSA) overtime exemption requirements.