6 Best Compliance Tips On Overtime Under The Fair Labor Standards Act

Author: Michael D. Haberman - SPHR
1. Meaning of the term "Over Time"
A. The term overtime holds a technical meaning under the FLSA, and that is all time truly worked over a "threshold." The common threshold is 40 hours per week. Certain medical or government jobs may have alternative thresholds.
2. Basics of overtime
Based on a “workweek” that is a fixed and regular interval of 7 consecutive, 24-hour periods or days for a total of 168 hours. It does not have to coincide with a calendar week. Overtime is earned for hours worked greater than 40 hours in a workweek. It is paid at the rate of 1.5 times the employee’s “regular rate” of pay for all hours worked over 40. It must be paid in relation to the workweek in which it is earned.
3. Elements excluded from overtime
There are a number of types of compensation that may be excluded from overtime calculations. These include: Discretionary bonuses, such as a Christmas bonus, as long as they are not covered by an agreement or contract. Premium payments such as a premium for working a sixth or seventh day, or a Sunday, when such payments are already in the nature of overtime. Payments made under a qualifying savings plan, profit-sharing plan etc.
4. Rate at which FLSA overtime be paid
Time and one-half the "standard hourly rate" is the Rate at which FLSA overtime be paid. Shift differentials, Longevity pay and similar nondiscretionary wage supplements paid for work should generally be included in computing the FLSA overtime rate. There are certain provisions which may allow arrangements to pay for some work at a different rate, but only if the work is different from the worker's regular job, and performed only by agreement.
5. Weekend or night work
Additional pay for working weekends or nights depends on the employer and the employee agreement. The FLSA does not involve extra pay for weekend or night work. However, the FLSA does need that nonexempt, covered employees be paid not below the time and one-half the employee's regular rate for the period of time worked over 40 hours in a week.
6. Non-exempt
Non-exempt workers need to be paid an overtime premium of time-and-one-half for the real time worked in excess of 40 hours per week under the FLSA.

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