ABCs of Employment Law: The Fair Labor Standards Act (overtime) - Lexology
Second of two on the FLSA.
NOTE FROM ROBIN: In March, I began a series of very basic explanations of the federal laws that govern the workplace. The first installment covered discrimination in general, the second installment covered religious accommodation, and the third installment covered retaliation. Last week, I shifted gears a bit and posted about the minimum wage requirements of the Fair Labor Standards Act. Today’s post will discuss the overtime requirements of the FLSA. If there is a topic that you'd like to see covered in the future, please send me an email or leave a comment here.
For these two FLSA posts, I want to thank Jim Coleman, co-chair of our firm's Wage and Hour Practice Group, for keeping me on the straight and narrow. I could not have written these posts without his substantive expertise and editorial assistance.
The FLSA overtime provisions essentially say that a non-exempt employee must be paid for all hours worked each work week, plus properly calculated overtime premiums for any hours worked in excess of 40.
The “regular rate”
The amount of overtime pay that a non-exempt employee must be paid depends on the employee’s “regular rate.” The regular rate is the employee’s straight time pay for the workweek divided by the number of hours worked in that week. If the employee receives non-discretionary bonuses or shift differentials, those have to be included in computing the regular rate, making the regular rate higher. If the employer uses the “...
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