Overtime wages are mandated by federal and state legislation for most businesses. When working overtime, employees receive a 50% raise in their regular hourly pay. Time and a half signify the employee’s regular hourly rate plus the overtime pay of 50% for each hour worked over 40 in a workweek.
All employees may not be eligible for overtime pay due to the numerous exemptions found in these statutes. “Nonexempt” workers are those who are entitled to overtime pay, whereas “exempt” workers are those who are not.
Hours Worked on Weekends and Holidays Are Included in Overtime. But every hour worked in excess of 40 in a workweek, regardless of how many hours worked in a day, qualifies a nonexempt employee for overtime pay under federal and most state laws. Alex, a non-exempt employee, puts in 12 hours on Monday and 6 hours on Tuesday (and no additional hours during the week). The weekly requirement for overtime pay requires that his total hours worked surpass 40 in order to be triggered.
Obtain legal advice from a Paramus employment attorney who is experienced in handling your specific case.
Paying Extra for Employees Who Work Overtime
Overtime pay is mandatory for most businesses, but not all. Whether or not the Fair Labor Standards Act (FLSA), a federal statute that regulates wages and hours, applies to your business is the first step in determining whether or not overtime pay is owed.
If your company has yearly sales of $500,000 or more, you are required by law to comply with the Fair Labor Standards Act. However, if your employees engage in what Congress refers to as “interstate trade,” i.e., they perform services for clients in different states, then you must pay overtime even if your company is quite small. This encompasses a wider range of activities than you may expect, such as making or receiving interstate phone calls, mailing items outside of your state, or working with items that originated in another state.
In the extremely unlikely event that your company is too small or too local to be subject to the Fair Labor Standards Act (FLSA), you should nonetheless check the overtime requirements of your state. For further information, please get in touch with your state’s department of labour.