Topics

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

  • DOL Plans Changes to Child Labor, Regular Pay Rate and More

    Date:
    May 14, 2018
    Type:
    News

    A new regulatory agenda shows the US Department of Labor (DOL) intends to make changes to rules involving child labor, the regular rate of pay, the salary threshold for overtime-exempt employees, the minimum wage tip credit and more.

  • Workers Owed Overtime Whether Paid by Piece or by Hour, DOL Settlements Show

    Date:
    April 6, 2018
    Type:
    News

    Following an investigation by the US Department of Labor, 11 roofing companies in Florida recently agreed to pay about $1,000 to each of their 259 employees who had been paid a piece rate without regard to the actual number of hours they had worked.

  • Overtime: California

    Type:
    Employment Law Manual

    Updated to reflect information on a California Supreme Court ruling regarding how flat-sum bonuses are factored into the regular rate of pay.

  • WHD Announces Pilot Program to Resolve Minimum Wage, Overtime Violations

    Date:
    March 8, 2018
    Type:
    News

    The US Department of Labor's Wage and Hour Division has announced a new pilot program, the Payroll Audit Independent Determination (PAID) program, to expedite resolution of inadvertent minimum wage and overtime violations.

  • Overtime: North Carolina

    Type:
    Employment Law Manual

    Updated to reflect the repeal of the overtime requirement for employees of seasonal amusement and recreational establishments, effective January 1, 2018.

  • Overtime Variations by State

    Type:
    50-State Charts

    Updated to reflect the repeal of North Carolina's overtime requirement for employees of seasonal amusement and recreational establishments, effective January 1, 2018.

  • Overtime: New York

    Type:
    Employment Law Manual

    Updated to reflect new local overtime requirements under the New York City Fair Work Practices ordinances, effective November 26, 2017.

  • DOL Appeals Overtime Injunction

    Date:
    October 30, 2017
    Type:
    News

    The US Department of Labor is appealing the permanent injunction blocking the Obama administration's 2016 overtime rule not to uphold the $47,476 salary threshold but rather to preserve its authority to set a lower salary threshold.

  • $47,476 Minimum Salary Struck Down, New Minimum of About $33,000 Expected

    Date:
    August 31, 2017
    Type:
    News

    The US District Court for the Eastern District of Texas ruled that the US Department of Labor (DOL) exceeded its authority when it raised the minimum salary for most overtime-exempt employees to $47,476 last year.

  • Overtime: Connecticut

    Type:
    Employment Law Manual

    Updated to reflect information on a Connecticut Supreme Court ruling limiting the use of the fluctuating workweek method of calculating overtime.