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Overtime – Know the Facts

Overtime wage pay legal

Introduction

The Fair Labor Standards Act (FLSA) requires employers to pay their employees for all hours worked. Employees who work over 40 hours in a workweek must be paid at least one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. However, there are exceptions to this requirement. Some employers may be exempt from paying overtime; others may have special rules that apply to them, such as paying hourly workers by the week instead of by the hour.

Below is an overview of overtime requirements under federal law:

The federal Fair Labor Standards Act (FLSA) requires that covered, nonexempt employees be paid for all actual hours worked and overtime for all hours worked in excess of 40 in a workweek.

The federal Fair Labor Standards Act (FLSA) requires that covered, nonexempt employees be paid for all actual hours worked and overtime for all hours worked in excess of 40 in a workweek. The FLSA does not require employers to provide meal or rest breaks. However, if an employer chooses to do so it must comply with the requirements of the law. In most cases, this means paying employees for time spent on break periods.

The rules regarding what counts as compensable work time vary depending on the circumstances and industry where you work:

  • Non-exempt employees are those who are entitled to earn overtime pay at one-and-a-half times their regular rate of pay; they may also be entitled to minimum wage — that is, whichever is greater — when they work more than 40 hours per week (or whatever the standard number is set by your state).

The FLSA has two basic tests that determine if an employee is eligible for overtime pay:

  • The first test is the salary test. If the employee is paid at least $23,600 per year, then they are eligible for overtime pay.
  • The second test is the duties test. This test looks at what an employee’s primary duty actually is, and determines whether he or she falls into one of three categories: executive/supervisory; administrative; or professional.

Employees must meet both tests to be exempt from the overtime requirement of the FLSA.

Employees must meet both tests to be exempt from the overtime requirement of the FLSA. The first test is an employee’s duties or job duties and to determine if they are engaged in executive, administrative or professional duties.

The second test is to determine whether the employee’s primary duty is exempt from overtime based on a weekly salary equivalent of no less than $455 per week ($23,660 annually).

In addition to meeting the test for executive, administrative or professional employees, they generally must be paid a salary of at least $455 per week ($23,600 annually).

In addition to meeting the test for executive, administrative or professional employees, they generally must be paid a salary of at least $455 per week ($23,600 annually). The regular rate of pay is determined by dividing the employee’s total remuneration (including commissions) by the number of hours worked. If an employee works more than 40 hours in a workweek, he or she is entitled to 1½ times their regular rate for each hour worked over 40. For example: if an employee works 50 hours during a workweek and is paid $12 per hour on a salary basis, he/she will receive $600 for those 50 hours ($12 x 50 = 600).

These duty tests apply to all types of employers, including private-sector and public (federal, state and local government) employers.

  • The FLSA applies to all private-sector and government employers, regardless of size.
  • The FLSA also covers federal, state and local government agencies.

These exemptions are narrowly defined because Congress wanted to ensure as many workers as possible had the protection of the law’s minimum wage and overtime requirements.

Congress wanted to ensure as many workers as possible had the protection of the law’s minimum wage and overtime requirements. They did not want to exempt too many workers from the minimum wage and overtime requirements.

In order for a worker to be exempt from overtime, he or she must meet one of three tests: perform executive, administrative and professional duties; earn more than $455 per week (the standard salary level); or be paid on a salary basis with his or her regular rate at least equal to the minimum wage (which is currently $7.25 per hour).

If you have questions about whether you are paid accurately for the work you perform, contact your employer’s human resources department, or your union representative if you are a member of a union.

If you have questions about whether you are paid accurately for the work you perform, contact your employer’s human resources department, or your union representative if you are a member of a union.

If your employer has failed to pay overtime wages or denied other rights protected under the FLSA, contact the Wage and Hour Division at 1-866-487-9243. The FLSA Division of the U.S. Department of Labor may be reached at: (202) 693-0067 or www.dol.gov/whd/.

If you are employed by a school district, you may not be eligible for overtime under state law even if you would be eligible under federal law or vice versa.

If you are employed by a school district, you may not be eligible for overtime under state law even if you would be eligible under federal law or vice versa. For example, a school district could be exempt from overtime laws if it meets certain criteria. Under state law, there are several categories of employees who are not covered by the usual rules on minimum wage and maximum hours in a week. They include:

  • Teachers, counselors, librarians and principals who hold valid state teaching certificates;
  • Employees with at least one year of service to the school district;
  • Full-time homeroom teachers who are paid on an hourly basis (and not on contract with the school).

Know who gets overtime since it is unpaid wages owed by an employer.

Overtime is unpaid wages owed by an employer. It’s not paid by the government; it’s not paid by your employee; it’s not even paid by a union or subcontractor. Overtime is unpaid wages owed to you, the worker.

Conclusion

The FLSA requires employers to pay covered employees for all actual hours worked and overtime for all hours worked in excess of 40 in a workweek. This means that if you work more than 40 hours, the law requires your employer to pay you 1.5 times your regular rate of pay for each hour over 40. If you are not paid properly or not paid at all, contact the Department of Labor’s Wage and Hour Division.

Michael Brethorst, MS

Chief Contributor

We provide practical and usable real world solutions to common and complex Healtcare and Human Resource questions. All of our articles are based in fact.

Michael Brethorst

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