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Overtime is a topic that employers want to avoid
and employees want to take advantage. It can be misunderstood and
misconstrued so both the employer (especially the employer!) and the
employee should take the time to understand how overtime works. First
and foremost, detailed information is available through the U.S.
Department of Labor's (DOL) and is defined under the Fair Labor
Standards Act (FLSA). Secondly, the following information that is
provided is an overview only and does not constitute the exact wording
of the law. Overtime is due when a covered, nonexempt employee
works over 40 hours in a workweek. A workweek is defined as a fixed and
regularly recurring period of seven 24-hour days, 168 hours. Nonexempt
employees, that is to say, employees who are exempt from receiving
overtime pay, are employees that fit the FLSA definition of
administrative, executive, professional, computer employee or outside
sales. Their job duties must fall within the FLSA guidelines and their
salaries must not be less than $455/week. Other exemptions do exist and
more information is available on the DOL website. The overtime rate of
pay is not less than one and one-half times the applicable rate of pay.
For employees who are paid at multiple pay rates, the DOL website has a
guide that helps explain which rate of pay is applicable to the
overtime premium. Accurate records must be maintained for every
employee's wages, hours, and conditions of employment. If any company,
large or small, is in violation of this act, the DOL can and will sue
to protect the employees and recover lost wages. Depending on the size
of your company, the fines and back-pay may run into the millions. Be
aware of your employees' timesheets and make sure you understand the
FLSA overtime rules. States may have their own set of overtime rules
and in the event the rules are not the same, the employee is entitled
to the overtime at the higher standard or rate of pay. Check with your
State Department of Labor to make sure you are in compliance with their
regulations as well as the federal regulations. As an employee,
be aware of your hours. After all, every hour worked is a dollar
(hopefully more!) earned. Typically you and your supervisor sign forms
that agree to your hours worked per week. If you met the overtime rule
and you were not paid the overtime premium, promptly notify your
supervisor. It could have been a simple clerical error. If the errors
persist or if you are not getting paid the overtime at all, contact
Human Resources. If your hours qualify for overtime and you are not
getting paid for that overtime worked make sure your voice is heard -
you deserve your due!
Kathryn
Cuff works for Radcliffe Payroll Services, a national payroll company
that combines years of professional payroll expertise with personal
client care. Visit us at http://www.radcliffepayroll.net/.
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