When is employer required to pay overtime

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Learn more. Help Center Answers and how-to guides. The Blog Tips to help you and your small business. Case Studies See how we help businesses like yours. Generally, an employee's regular rate is the amount that the employee is regularly paid for each hour of work. When an employee is paid on a non-hourly basis e. Yes, federal regulations allow up to 10 percent of the salary threshold can be satisfied by nondiscretionary bonuses, incentives, and commissions paid on an annual basis.

Yes, employers are able to dictate the time of day and hours employee's work. An announcement by an employer that no overtime work will be permitted, or that only overtime work authorized in advance will be paid, does not cancel the employer's obligation to pay overtime to workers for hours worked beyond 40 hours per week. Employees are encouraged to speak with their employer about their right to overtime under federal Fair Labor Standards Act.

If an employer refuses to pay the overtime to a salaried employee, that employee can contact the US Department of Labor at either or An employee can also visit www. Here are the basic requirements for the administrative, executive, and professional exemptions:.

If you're not receiving overtime pay to which you're legally entitled, bring the issue to the attention of your supervisor or human resources department.

If that doesn't work, you may wish to contact an attorney to explore your legal options. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising.

In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Grow Your Legal Practice. Meet the Editors. When Must Employers Pay Overtime? Are your employees entitled to overtime pay? Learn the rules here. What Counts as Overtime: Weekly Versus Daily Standard Federal and most state laws impose a weekly overtime standard, which means that nonexempt employees are entitled to overtime for every hour beyond 40 that they work in a workweek, regardless of how many hours they work in a day.

Employers That Must Pay Overtime Although the vast majority of employers must pay overtime, not all are required to. Which Employees Are Entitled to Overtime If your business is covered by either the FLSA or your state's overtime law, then all of your employees are entitled to overtime unless they fit into an exception. Administrative, Executive, and Professional Employees Probably the most common—and confusing—exceptions to the overtime laws are for so-called "white collar" workers.

Job Duties In addition to the above salary requirements, the employee must also be performing certain types of work—generally, work that is directly related to the company's business operations, requires an advanced degree, or is managerial or supervisory in nature.

Here are the basic requirements for the administrative, executive, and professional exemptions: Administrative exemption. It is important to determine what maximum is legal in each case.

The alternate method of scheduling and computing overtime under most Industrial Welfare Commission Wage Orders , based on an alternative workweek schedule of four hour days or three hour days does not affect the regular rate of pay, which in this case also would be computed on the basis of 40 hours per workweek.

The agreed upon regular hours must be used if they are less than the legal maximum regular hours. For example, if you work 32 to 38 hours each week, there is an agreed average workweek of 35 hours, and thirty-five hours is the figure used to determine the regular rate of pay. However, in circumstances where the workweek is less than 40 hours, the law does not require payment of the overtime premium unless the employee works more than eight hours in a workday or more than 40 hours in a workweek.

In other words, assuming you are employed under a policy that provides for a hour workweek, the law does not require the employer to pay the overtime premium until after eight hours in a workday or 40 hours in a workweek. If you work more than 35 but fewer than 40 hours in a workweek, you will be entitled to be paid for the extra hours at your regular rate of pay unless you work over eight hours in a workday or 40 hours in a workweek.

The piece or commission rate is used as the regular rate and you are paid one and one-half this rate for production during the first four overtime hours in a workday, and double time for all hours worked beyond 12 in a workday; or.

Divide your total earnings for the workweek, including earnings during overtime hours, by the total hours worked during the workweek, including the overtime hours. For each overtime hour worked you are entitled to an additional one-half the regular rate for hours requiring time and one-half, and to the full rate for hours requiring double time. A group rate for piece workers is an acceptable method for computing the regular rate of pay. In using this method, the total number of pieces produced by the group is divided by the number of people in the group, with each person being paid accordingly.

The regular rate for each worker is determined by dividing the pay received by the number of hours worked. The regular rate cannot be less than the minimum wage. Yes, California law requires that employers pay overtime, whether authorized or not, at the rate of one and one-half times the employee's regular rate of pay for all hours worked in excess of eight up to and including 12 hours in any workday, and for the first eight hours of work on the seventh consecutive day of work in a workweek, and double the employee's regular rate of pay for all hours worked in excess of 12 in any workday and for all hours worked in excess of eight on the seventh consecutive day of work in a workweek.

Yes, if it is a nondiscretionary bonus. A nondiscretionary bonus is included in determining the regular rate of pay for computing overtime when the bonus is compensation for hours worked, production or proficiency, or as an incentive to remain employed by the same employer. Incentive bonuses include flat sum bonuses. To properly compute overtime on a flat sum bonus, the bonus must be divided by the maximum legal regular hours worked in the bonus-earning period, not by the total hours worked in the bonus-earning period.

This calculation will produce the regular rate of pay on the flat sum bonus earnings. Overtime on a flat sum bonus must then be paid at 1. Overtime on production bonuses, bonuses designed as an incentive for increased production for each hour worked are computed differently from flat sum bonuses. To compute overtime on a production bonus, the production bonus is divided by the total hours worked in the bonus earning period.

This calculation will produce the regular rate of pay on the production bonus. Overtime on the production bonus is then paid at.