Common problems with the FLSA's overtime requirements
Nonexempt employees must be compensated for working more than 40 hours in one week at a rate no less than time-and-a-half of their regular pay. The vast majority of employers are aware of this, but there are some specifics that can cause confusion.
Fixed sum for varying amounts of overtime
Compensating overtime employee attendance with a lump sum that isn't affected by the number of hours worked in excess of 40 in one week does not qualify as an overtime premium. Although it may exceed the minimum of time-and-a-half pay, it is unaffected by the number of hours worked.
Salaried work exceeding a 40-hour work week
Salaried workers who receive a fixed salary for a work week that exceeds 40 hours must still be paid time-and-a-half for additional hours.
Overtime waivers
Overtime is a right that cannot be overruled by an agreement between workers and their employers. Companies do not have the right to withhold overtime pay from eligible workers.
Employers can refer to the U.S. Department of Labor's Overtime Pay Requirements of the FLSA fact sheet to ensure they're complying with federal time and attendance regulations.
Fixed sum for varying amounts of overtime
Compensating overtime employee attendance with a lump sum that isn't affected by the number of hours worked in excess of 40 in one week does not qualify as an overtime premium. Although it may exceed the minimum of time-and-a-half pay, it is unaffected by the number of hours worked.
Salaried work exceeding a 40-hour work week
Salaried workers who receive a fixed salary for a work week that exceeds 40 hours must still be paid time-and-a-half for additional hours.
Overtime waivers
Overtime is a right that cannot be overruled by an agreement between workers and their employers. Companies do not have the right to withhold overtime pay from eligible workers.
Employers can refer to the U.S. Department of Labor's Overtime Pay Requirements of the FLSA fact sheet to ensure they're complying with federal time and attendance regulations.
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