Overview: 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
A final rule clarifying that additional pay is compatible with the fluctuating workweek method of calculating overtime will help employers implement flexible work schedules as workers return to work following the coronavirus (COVID-19) pandemic, according to the US Department of Labor (DOL).
Updated to reflect a forthcoming final rule to clarify and update the Fair Labor Standards Act (FLSA) fluctuating workweek requirements.
Colorado employers that require their employees to sign a handbook acknowledgment must also require a signed acknowledgement that employees were provided a copy of COMPS Order #36 or a COMPS Order poster.
The US Department of Labor (DOL) addressed whether certain longevity payments, referral bonuses and contributions to a group-term life insurance policy may be excluded from overtime calculations.
Updated to reflect the Colorado Overtime and Minimum Pay Standards (COMPS) Order, effective March 16, 2020.
Welcomed by franchisors and others in the business community, the new Fair Labor Standards Act (FLSA) joint employment rule takes effect March 16.
Numerous legislative changes take effect on or about January 1, affecting minimum wage rates, employee leaves, health care benefits and more. HR should take note of these legal developments and take appropriate steps to comply.
HR guidance on complying with federal and state employee overtime laws. Support on following rules and regulations regarding this employment law topic.