Federal law sets limits to how long employees can work during a standard work week for their normal pay. The Fair Labor Standards Act limits employees to 40 hours per week before they’re due overtime pay. Overtime pay is set at 1.5 times the employee’s standard hourly pay.
While most people know a few of the basics about overtime, they may not realize that there are several considerations when it comes to overtime pay.
Not all employees are entitled to overtime
Some employees aren’t entitled to overtime. There are exemptions based on an employee’s salary basis, their duties and compensation level. These are typically executives, administrators, professionals, certain computer-related roles and outside sales. It’s critical to know that a job title alone doesn’t decide if overtime is allowable.
Accurate records are imperative
Accurate records are critical when it comes to overtime pay. This includes having proper timecards, schedules and payroll records. In some cases, emails, system login data and work messages may also come in handy. All of these records can show how hours are calculated and how pay is calculated from those time records.
Remote work has added a bit of complexity when it comes to overtime. Things like working through meal periods, completing tasks when you aren’t clocked in and checking messages after hours are all compensable time.
Overtime can’t be bypassed
Employers should ensure that they’re paying overtime when it’s due. It can’t be avoided by simply telling employees that overtime isn’t approved or that it has to be pre-approved. Instead, workers who put in overtime must be paid for it. Employers also can’t try to give the employee other benefits in lieu of overtime pay.
If an employee is due overtime pay and isn’t paid for it, the employee may opt to pursue legal action. The employee should speak with someone familiar with these matters so they can determine what options they have, and employers should also seek assistance to determine their options for addressing the claim by the employee.