Attorneys James T. Carey and P. Zachary Stewart

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How does overtime pay work?

On Behalf of | Oct 29, 2021 | Overtime And Wage Issues

According to the U.S. Department of Labor, the Fair Labor Standards Act (FLSA) establishes laws regarding overtime pay. These laws dictate who is eligible for overtime, as well as how much eligible workers must receive.

All workers should understand FLSA regulations and employer obligations. Here are a few things to keep in mind about overtime rates.

Who is eligible for overtime pay?

Any employee aged 16 or older can receive overtime pay. Workers receive overtime pay when they go beyond 40 hours in a single workweek. Employees 16 and older do not have limits on how much they can work in a given week. If work is available, they can accrue as many hours as they feel comfortable with and must receive the proper compensation as a result.

How much overtime pay should a person receive?

Workers must receive 1.5 times their normal hourly rate. For example, if you receive $12 an hour, your overtime rate is $18 an hour. Employers must pay at least this amount when compensating you for overtime.

How long is a standard workweek?

Workweeks consist of 168-hour periods, which equals “seven consecutive 24-hour periods”. That does not mean the workweek must follow the calendar. Workweeks can start on any day and at any hour based on an employee’s schedule.

When must employers provide overtime pay?

Staff receives overtime pay on the regular payday for the pay period when they exceeded 40 hours.

Do weekends and holidays count?

Weekends, holidays, and any other days of rest do not warrant overtime pay on their own. The only exception is when an employee works overtime on these days based on the standard workweek schedule.

Do not hesitate to speak up if you feel you have not received the correct rate of pay based on hours worked. Employers must follow the rules set forth by the FLSA, and there are legal actions to take if they fail to do so.