Overtime Pay Explained by the Fair Labor Standards Act

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Overtime pay and payroll services - The Payroll Company 505-944-0105

The requirements 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 in excess of
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 an 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 workweek 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 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 workers 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 general 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 Inormation (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 paying your company’s overtime wages by using the services of payroll services provider.

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