Overtime Pay
Key Takeaways
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Federal law protects non-exempt employees’ right to receive time-and-a-half for working more than 40 hours in a week.
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Overtime pay is due on the regular payday for the pay period when employees work overtime.
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Federal law does not guarantee overtime pay for working on holidays or weekends.
Most employees in the U.S. are eligible for overtime pay when their work hours exceed a certain amount during a particular period. Employers must understand overtime pay laws because payroll is often the company’s most significant expense. Employees must understand the overtime rules to ensure their employer pays them the correct amount.
This page gives a broad overview of the overtime pay rules. It links to more detailed articles that can help you answer specific questions. Because overtime laws vary by state, we suggest consulting an employment law attorney in a city near you to give you the best advice about your wage dispute.
What Are the Federal Laws for Overtime?
The U.S. Department of Labor’s Fair Labor Standards Act (“FLSA”) contains federal overtime provisions, overtime protections, and overtime regulations. Under the FLSA, employers must pay non-exempt employees “premium pay” of at least one and one-half times (also referred to as time and a half) the employee’s regular rate of pay for hours worked over 40 in a work week. Overtime pay is due on the regular payday for the pay period in which the employee worked overtime.
The FLSA does not limit the number of hours that employees who are 16 years old or older can work. It also does not require overtime wages for regular days of rest, such as weekends and holidays, unless employees work overtime hours on those days. For instance, under the FLSA, You are not entitled to overtime pay for working on a Sunday unless you work more than 40 hours during the work week.
What Employees Does the FLSA Cover?
The FLSA can cover employees in two ways:
- Enterprise coverage: This applies to employees who work for an employer that has at least $500,000 per year in sales and has at least two employees. The FLSA also applies to hospitals, nursing homes, schools and preschools, and government agencies.
- Individual coverage: This applies to employees whose work regularly involves them in commerce or the production of goods, like factory workers or people who travel to other states for their jobs. Domestic service workers, such as maids or full-time babysitters, qualify for individual coverage under the FLSA.
Which Employees Are Exempt From Overtime Laws?
The FLSA classifies employees based on whether they are eligible for overtime compensation. Employers must pay non-exempt employees for overtime while it does not have to do so for exempt employees. The overtime exemption typically applies to salaried employees and employees with unconventional work schedules and tasks.
The FLSA lists the following categories of exempt employees:
- Administrative employees exercise independent judgment and have typical job duties involving non-manual office work directly related to the business’s management or operations.
- Computer employees have significant knowledge and experience in the computer field, such as computer programmers, computer systems analysts, and software engineers. To be exempt, computer employees must earn at least $684 per week in gross pay or a minimum wage of $27.63 per hour if paid hourly.
- Executives manage a business, a company department, or a company branch. They must also have the authority to hire or fire other employees or to make recommendations related to hiring, firing, or promotions. Executives must also earn at least $684 per week.
- Outside sales employees regularly work outside their employer’s place of business and make sales or obtain orders. These employees do not have a minimum weekly salary requirement.
- Professional employees fall into two categories: learned professionals, such as accountants, architects, chemists, doctors, lawyers, engineers, and teachers, and creative professionals, such as actors, artists, musicians, and writers. Both must meet the minimum $684 per week salary requirement.
Note that these figures are subject to change. To confirm these figures and that all information is current, contact a local employment law attorney.
Do Employees Who Work Outside the Office Get Overtime?
Technology allows many employees to work outside of the office. The FLSA does not distinguish between overtime work performed at the office and remote overtime work. So, employers must pay non-exempt employees overtime when required, regardless of whether the employee works in the office or out of it.
The “required and permitted” language means that employers should provide written authorization for employees to earn overtime while working outside the office. For instance, you may not be entitled to overtime for checking email on the weekend when your boss did not intend for you to do so.
What Are the State Overtime Laws?
Some states have overtime laws in addition to the FLSA. Employees subject to both state and federal overtime laws are entitled to overtime according to whichever law pays the higher overtime pay.
For example, California has state overtime laws. In addition to requiring overtime for working more than 40 hours in a work week, employees also receive overtime pay when they work more than eight hours in a single workday. The overtime rate increases to double the employee’s regular hourly rate (double time) for working more than 12 hours in a day. In addition, California requires overtime pay on Sundays for employees who work seven days a week.
Florida overtime laws, on the other hand, largely follow the FLSA. One significant difference is that employees in physical labor jobs who work more than 10 hours a day are eligible for overtime.
Texas also follows the FLSA but has additional limitations. Hospitals cannot require nurses to work overtime. Nurses can work overtime if they so choose.
Get a Lawyer To Protect Your Overtime Pay
Even everyday legal matters can become complex and stressful. If your boss is withholding overtime pay that you deserve, an employment lawyer experienced in wage-and-hour disputes can explain the law, protect your rights, and represent you in court.
Discriminated Against or Harassed at Work?
Experienced employment lawyers in our directory can fight on your behalf for the compensation you deserve and hold your employer accountable.
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