How Does Overtime Pay Work?
- March 26, 2015 @ 3:53 pm
- Written by admingil
- Categories: Employment | Family and Medical Leave Act (FMLA) | Unpaid Overtime
For this Employment Law Q&A installment Attorney Ashleigh Shelver answers questions related to unpaid overtime. You’ve got questions and we’ve got answers: Take a look below to find answers to some of the most common questions about overtime pay.
How many hours do I have to work to be paid overtime?
Good question. The federal law that establishes minimum wage, overtime pay eligibility, record-keeping, and other employment-related standards, is the Fair Labor Standards Act (“FLSA”). According to the overtime provisions of the FLSA employers are required to pay their covered nonexempt employees overtime for all hours that the employee worked over 40 in that employee’s workweek.
How much is overtime pay?
For covered nonexempt employees, overtime pay is defined as one and one-half times the employee’s regular rate of pay. The “regular rate of pay” is “the hourly rate actually paid to the employee for the normal, non-overtime, workweek for which he [or she] is employed.” 29 C.F.R. § 778.108. This means that no matter how an employee is paid – hourly, salaried, etc. – the employee’s regular rate of pay is determined by dividing the employee’s total pay for the workweek by the total number of hours actually worked by the employee in that workweek. See 29 C.F.R. § 778.109.
How does paid overtime work for salaried employees?
Covered nonexempt employees who are salaried are also entitled to overtime pay under the FLSA. A salaried employee’s overtime rate is also one and one-half their regular rate of pay. A salaried employee’s regular rate of pay is found by “dividing the salary by the number of hours which the salary is intended to compensate.” 29 C.F.R. § 778.113.
For example, if an employee is hired at a weekly salary of $400 and his regular workweek is 35 hours, his regular rate of pay will be $200 divided by 35 hours, or $11.42. In this example, the employee is entitled to $11.42, his regular rate of pay, for each of the first 40 hours worked in a workweek, and $17.13, one and one-half his regular rate of pay, for each hour over 40 worked in a workweek.
Do you get paid overtime on holidays?
The FLSA mandates that you receive overtime pay for all hours worked over 40 in a given workweek of at least one and one-half of your regular rate of pay. An employee is not owed overtime simply for working holidays. However, if you actually worked overtime hours (more than 40 hours for the workweek) on a holiday, the FLSA requires that you be paid for those overtime hours.
Wages: Overtime Pay, United States Department of Labor, available by clicking here.
Who is not required to receive overtime pay?
There are many types of work that the FLSA does not require overtime be paid for. Some of these exemptions to overtime pay include, but are not limited to the following listed:
Employees of amusement or recreational establishments that operation on a seasonal basis. See 29 U.S.C. § 213(a)(3).
Employees who work on a causal basis in “domestic service employment,” which includes providing babysitting services or companionship services for those who are unable to care for themselves. 29 U.S.C. § 213(a)(15).
Certain employees who carry property by motor vehicle for a private employer. See 29 U.S.C. 213(b)(1), (2).
Commission salespersons employed in retail and service establishments. See 29 U.S.C. § 207(i).
Employees in hospitals or establishments that care for the sick, aged, or mentally ill. See 29 U.S.C. § 207(j).
It is important to note that while there are many exceptions to the FLSA overtime requirement, these exceptions can be precise and often times, an employer will misclassify an employee who may otherwise be entitled to overtime.
Is not getting paid overtime “wage theft”?
Certainly: “Wage theft” is a general name given to an array of employment disputes of state and federal wage and hour laws. This would include a lawsuit against an employer seeking to recover unpaid wages or unpaid overtime that is owed to you.
How do you help people that don’t get paid for overtime?
At John Bales Attorneys, we can help if you believe you are owed overtime by reviewing your case for free, determining if a claim exists, and explaining the available rights and recourse. If a claim is justified, we can help you get the money you deserve from your current or past employer.
So, in a nutshell how does overtime pay work?
In short, if you work over 40 hours a week you are likely entitled to one and one-half times of your regular rate of pay.
Didn’t find an answer to your specific question on how overtime pay works? Send us a message and we’ll answer it for you.
Think that you are the victim of unpaid overtime? Contact our Employment Dispute Team now and we’ll let you know if you have a case right away.