Understanding what is Owed for Overtime Pay

A non-exempt employee is entitled to overtime pay, while an exempt employee is not. The amount of overtime pay is determined by the state in which the employee works. Federal law establishes the minimum amount of overtime pay which is at least one and a half times the employee’s regular rate of pay after 40 hours of work in a workweek.

If the employee is salaried, federal law requires the employer to calculate the employee’s regular rate of pay by dividing his/her salary by the actual hours worked to arrive at the employee’s hourly rate. The overtime pay rate is one and a half times this regular rate. The applicable state law may be more generous to employees than what is required by federal law. Thus, it is important to confer with a local employment law attorney to confirm you are paying the appropriate rate of overtime pay.

Generally speaking, an employer can require an employee (but not an independent contractor) to work overtime as long as the employee is properly compensated for the overtime hours. An employer must also pay for overtime work, even if it was not approved.

As you can tell, there are a variety of issues that can arise when it comes to overtime pay. If you are in doubt about whether your employees are entitled to receive overtime pay or you have any other employment law matters we can assist you with, contact The Swenson Law Firm for the advice and guidance you need.

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