A guide to overtime pay
Employers might run into trouble if they do not know which federal and state overtime laws apply to their workers.
According to the Fair Labor Standards Act (FLSA) established by the U.S. Department of Labor, employers are required to pay employees one-and-a-half-time the regular pay rate for any hours worked beyond 40 in any given workweek unless they are covered by an exemption.
Some states have established their own overtime laws that might be more or less strict than those outlined by the FLSA. For example, Kentucky, California, Alaska, Colorado and Nevada have imposed laws that mandate overtime rates after a consecutive number of days are worked in addition to requiring time-and-a-half for employee attendance after working 40 hours in a single workweek. Minnesota, on the other hand, considers 48 hours the point at which overtime rates apply.
The FLSA does not limit the number of consecutive days an employee can work nor does it require employers to pay extra for time attendance on nights, weekends or holidays.
To ensure a business' payroll policies are in compliance with the FLSA as well as state law, employers should learn about applicable requirements and use them as a guide for their labor practices.
According to the Fair Labor Standards Act (FLSA) established by the U.S. Department of Labor, employers are required to pay employees one-and-a-half-time the regular pay rate for any hours worked beyond 40 in any given workweek unless they are covered by an exemption.
Some states have established their own overtime laws that might be more or less strict than those outlined by the FLSA. For example, Kentucky, California, Alaska, Colorado and Nevada have imposed laws that mandate overtime rates after a consecutive number of days are worked in addition to requiring time-and-a-half for employee attendance after working 40 hours in a single workweek. Minnesota, on the other hand, considers 48 hours the point at which overtime rates apply.
The FLSA does not limit the number of consecutive days an employee can work nor does it require employers to pay extra for time attendance on nights, weekends or holidays.
To ensure a business' payroll policies are in compliance with the FLSA as well as state law, employers should learn about applicable requirements and use them as a guide for their labor practices.
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