Overtime is the amount of time worked beyond an employee’s normally scheduled hours. For example, most employees are scheduled to work a 40 hour work week, and anything worked beyond those 40 hours would be considered overtime. Overtime also references the pay received for this extra time. Many employers can require an employee to work overtime while some simply offer it. Depending on the Fair Labor Standards Act as well as whether an employee is considered exempt or non-exempt will determine if an employee can be compensated for extra hours worked or if an employee can be forced to work extra hours. If you feel you’ve been taken advantage of, contact a unpaid overtime pay law firm right away to see if you qualify for a unpaid overtime lawsuit.
The Fair Labor Standards Act (FLSA) is the main guidance for overtime rules, minimum wages, overtime eligibility as well as many other factors of the overtime laws. The FLSA is a federal law and one that is commonly used by human resources, employers, as well as employees who have questions about overtime regulations and requirements. So who determines if a position is overtime eligible? Each agency’s human resource office decides who can work and get paid for their overtime. This is all based upon official standards and rules set by the U.S. Department of Labor.
Federal overtime laws created from the FLSA state that for all hours worked that exceeds 40 hours during the work week, employees will receive an overtime rate of one and one-half times the employee’s normal rate of pay. There are FLSA exemptions that are listed, and paid overtime does depend on whether the employee is exempt or non-exempt which is classified in their job description. Non-exempt means that the employee is entitled to overtime pay as stated by the FLSA. Exempt employees are those that are exempted from the overtime requirements and cannot be asked to work overtime or receive compensation from it. Generally, these are usually white-collar exemptions that can be found in executive positions and several other jobs as stated in the FLSA. In order for an employee to meet the exemption requirements, their job duties and salary must meet the guidelines outlined by the Department of Labor. Also, section 13(a)(1) of the FLSA provides exemption guidelines as whether overtime can be asked or given..
New overtime regulations were released December 1, 2016. One of these new regulations increased the threshold for exemption, annual compensation, and time frame in which the Department of Labor will continually update the salary standard. Other factors to consider for overtime compensation include comp time, child labor laws, and federal and state break requirements. These factors contribute to labor and overtime laws and can affect compensation and extra hour’s classification.
Many employees that are overtime-eligible must fill out a time and attendance record as required by the FLSA. Overtime can be compensated for, required, and given to those employees that are eligible and in accordance with the FLSA, the state, and the human resources office. Knowing your rights and educating yourself on the Department of Labor standards as well as the FLSA can help both managers and employees determine overtime compensation.