Special circumstances apply to some employees when calculating overtime

Under the Fair Labor Standards Act (FLSA), employers are required to pay workers at least minimum wage for all of their employee attendance as well as overtime premiums for hours worked exceeding 40. However, certain positions are exempt from these provisions because of the nature of the work they perform and the average salaries they receive. There are also special circumstances that affect the way overtime pay is calculated for some employees.

State and local government employees, police and firefighters, tipped employees, workers with disabilities, hospital employees, home caregivers and student learners all fall under this special circumstance category.

For instance, state and local government employees are sometimes eligible for comp time instead of overtime pay, given that they earn one-and-a-half hours of compensatory time off for each hour of overtime.

Hospital employees, on the other hand, might be covered by a special "8 and 80" provision that allows healthcare facilities to calculate pay based on a 14-day pay period, which includes 80 hours instead of 40. Employers in these institutions can apply provisions to some workers, while others fall under the basic 40-hour-per-week payroll processing schedule.

Industries that employ workers who fall under these special provisions might find its easier to remain in compliance when they outsource human resources or use an advanced payroll processing program in-house.