Overtime Rules on Pay According to the Fair Labor Standards Act

The requirements and rules for federal overtime are spelled out in writing in the Fair Labor Standards Act (FLSA). Employees (most private and public employees are covered by the overtime rules in this act) covered by the FLSA are required to be paid overtime pay for any hours worked more than 40 hours during a workweek at a pay rate of time and one-half their regular hourly pay rate. Employees that are 16 years of age and older are not restricted by FLSA from working any hour limit over the 40-hour mark. Overtime pay is not required if a person works on Saturday, Sunday, holiday or regular days off per the FLSA, but overtime pay is required if a person works overtime any of those days.

The FLSA regards overtime based on regular workweek as designated by its employers. A work week is the same and consistent over the same 7 days and 168 hours week after week. A work week for overtime purposes and hours worked does not have to be the same as the standard calendar week, but the work week must start on the same day and time and end on the same day and time and the end of the 7th day. Employers can designate set workweeks for specific sets or groups of employees or for individual employees. Employers are not allowed to average hours worked over periods of time, such as two weeks, three weeks or four weeks. Ordinarily overtime pay is earned as a matter of course and set a basis for the designated work week for the employee and the pay must reflect a 7-day workweek period for the regular hours and overtime hours worked.

The U.S. Department of Labor made an announcement on 3/28/2019 regarding overtime pay and regular rate requirements. It announced a suggested rule to change 29 CFR part 778 to clarify and update regular rate requirements under section 7(e) of the Fair Labor Standards Act (FLSA). The act usually mandates that overtime pay of a minimum of one and one-half times a worker’s regular pay rate for any hour work over 40 hours for a workweek. The “regular rate” then governs the amount nonexempt workers under the auspices of the FLSA are paid in overtime wages. To learn more, go to the U.S. Department of Labor website here –  www.dol.gov/whd/overtime/regularrate2019.htm.

The U.S. Department of Labor came out publicly with an announcement on 3/7/2019 regarding a written suggest rule change making one million plus U.S. employees nonexempt and eligible to be paid overtime for hours worked in excess of 40 hours in a workweek. To learn more, go to the U.S. Department of Labor website here—www.dol.gov/whd/overtime2019.

Back on 8/27/2018 the U.S. Department of Labor announced its Wage and Hour Division would have sessions for the public wanting to know about upcoming updates to the regulation labeled “Overtime Rule”.   Back on 7/26/2017 the U.S. Department of Labor published a Request for Information (RFI) covering a specific set of rules that included delimiting and defining overtime exclusions for computer employees, outside sales employees, professionals and executives. Learn more about it visit the U.S. Department of Labor website here—http://www.dol.gov/whd/overtime/rfi2016.htm

Overtime must be paid by law under both Federal and State laws. Be sure to stay in compliance by paying your company’s overtime wages by using the services of payroll services provider.