No matter which state you are in, you must follow federal overtime laws. However, many states have overtime regulations that are stricter than the federal rules. Because there are costly penalties for violating these regulations, it’s important to become aware of the overtime laws in...
Question: An employee worked unauthorized overtime. Do we have to pay them time and a half for these hours? Answer: Yes. Any overtime worked by nonexempt employees must be compensated, regardless of whether the overtime was authorized. We recommend communicating with the employee about work...
The Fair Labor Standards Act (FLSA) was originally created in 1938. Since that time, the FLSA and Department of Labor (DOL) regulations have governed the provision of overtime in the United States. In April 2024, the FLSA received a major update for the first time in years. The...
Paying overtime is not just a matter of paying employees the standard 1.5 times their normal pay rate when they work more than 40 hours in a week. Overtime payment errors can occur if you miss a payment: When employees work during break times. When...
Question: We have an hourly employee who will be working at two different locations and under two titles, 25 hours at one location and 25 hours at the other. Will he need to be paid overtime? Answer: Yes. Titles, job duties, and locations are irrelevant—focus only on...
In our previous Tuesday post, we discussed the problems with unplanned overtime and its ability to wreak havoc on your company’s labor budget. We also outlined the solution to this common issue: automating your timekeeping processes. Explore five ways that automated timekeeping can prevent unplanned...
“Every problem is a gift – without problems, we would not grow.” -Tony Robbins, author, coach, speaker, and philanthropist Identifying and solving business problems is an essential aspect of running a company. Every business has its own problems, but one shared concern among company owners across all...
Following are three examples of FLSA Overtime violations. Penalties can be severe. The Department of Labor’s Wage and Hour Division (WHD) is very aggressive about enforcing FLSA Overtime rules. The WHD answers 900,000 calls from employees asking if their rights were violated each year. “Hey Pam,...
Question: We have an employee claiming they shouldn't be classified as exempt from overtime. If it turns out they're right, what are the penalties for misclassification? Answer: The cost of misclassification can be steep and will depend on several factors, such as how many employees are misclassified,...
Make sure you’re calculating overtime on a workweek basis, not a pay period basis. Non-exempt employees must be paid time and a half for all hours worked over 40 in a workweek, regardless of total hours worked in the pay period. The workweek is the 7-day,...