Although the Fair Labor Standards Act mandates a seven-day workweek for the purposes of computing employee overtime, one major exception exists for hospitals and other facilities providing residential care for mentally challenged, sick and elderly populations.

The "8 and 80" overtime provision replaces the standard regulations for employee tracking and overtime, according to legal firm Baker Donelson Bearman Caldwell & Berkowitz, PC. The system instead uses a 14-day workweek with a daily limit of eight hours and cumulative limit of 80 hours before overtime is paid. While the added daily hour limit for overtime can burden employers, the flexibility provided by the extended workweek and similarly higher cumulative overtime period can help businesses avoid excessive overtime costs.

Use of the "8 and 80" method requires an agreement between the employer and employee that the system will be used. While not necessary, businesses should clearly state that the system is being used and put its particulars in worker literature and employee handbooks to ease liability concerns. A written agreement to use the system is also beneficial for companies in warding off possible litigation.

Using effective employee management software will keep track of less common working arrangements like the "8 and 80" overtime provision and effectively calculate overtime for workers.

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