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 federal judge has ordered Steak 'n Shake to pay $7.7 million in back pay and liquidated damages for misclassifying store managers as exempt employees and failing to pay overtime.
Join former Department of Labor (DOL) Wage and Hour Administrator Tammy McCutchen for an in-depth look at proposed wage and hour changes that are sure to affect employers.
Updated to include information on a court decision regarding retail sales employees paid entirely in commissions or draws.
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.
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.
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.
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.
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.
HR guidance on complying with federal and state employee overtime laws. Support on following rules and regulations regarding this employment law topic.