Everything You Need to Know About Overtime Pay

As an employee or employer, you may experience confusion regarding the rules and regulations provided by the federal government and their application in your company. The policies released by the government must be followed correctly, or you will be penalized for the violation. Make sure to contact a wage & hour attorney for valuable information. 

Overtime Pay -An Overview

As per the fair labor standards act, nonexempt workers are protected and entitled to receive overtime pay if they perform work for more than 40 hours weekly. They will receive a higher wage to ensure fair work standards. All the employees are required to declare the overtime wage and the company’s minimum wage to the potential employees priorly. 

All employers Are obligated by the law to make overtime payments to the nonexempt workers for every single hour of work they do after the general 40 hours. If they fail to pay the overtime wage, they can be challenged by the law as it is a type of violation. Unpaid overtime work is illegal, and employers must ensure that all their workers are paid well. 

Calculation of overtime pay

As per the department of labor guidelines, the overtime wage rate should be time and half of their normal wage rate. They should not be paid less than that. 

Exceptions for overtime pay guidelines

There are certain exceptions for overtime payment. Nonexempt workers are entitled to receive overtime pay. On the other hand, workers who are listed as exempt are exempt from overtime pay. FSA guidelines do the classification. The employer decides which employees are exempt and which are non-exempt. They decided by assessing the amount made by their employees and the tasks done by them. If the employee makes less than $35,568 yearly or below $684 Weekly, the worker will be non-exempt from overtime payment. 

Determination of workweek

As per DOL guidelines, the work week refers to a fixed and regular period of 168 hours consecutively. The work week represents 24 hours seven times. There is no requirement for coinciding with a calendar week. The work week Can start at any day and time regardless of the conventional calendar.  

A lot of people tend to believe that working on weekends is automatically listed as overtime work. However, this is not true, and employers will be forced to make overtime payments to employees only if they exceed the 40-hour work period every week. 

 There is a similar misconception regarding working on holidays. A lot of people tend to think that they will be paid overtime wages if they work on holidays. However, this is not true, and they will be paid overtime only if they work in addition to the 40-hour weekly well.