Overtime

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Updated: 4/11/2007 11:26 am
All hourly wage earners and other employees covered under the Fair Labor Standards Act are entitled to receive overtime compensation if they work more than 40 hours in a week. The compensation they receive must be equal to or exceed one-and-one-half their regular rates of pay for every overtime hour they work. When calculating overtime pay, employers must include additional payments, like non-discretionary bonuses, in the employee's basic rate of pay. Non-discretionary bonuses are any payments given to employees based on their performance. Discretionary bonuses, or payments given as gifts on special occasions like during the holidays, are excluded from overtime calculation. Companies must pay employees the overtime rate regardless of how many overtime hours are accumulated and regardless of when an employee accumulates those overtime hours, whether during lunchtime, Sundays, or holidays. Overtime payment may not be delayed for a period longer than is necessary for the employing office to compute and arrange for payment, and in no event may payment be delayed before the next pay day after such computation can be made. The Fair Labor Standards Act prohibits employers from waiving the overtime requirement, even if an employee agrees to it. Employees who have been denied overtime pay should file a complaint with the nearest office of the Wage and Hour Division of the U.S. Department of Labor. Employees who are exempt from the overtime provisions under Fair Labor Standards Act and still receive overtime pay are generally subject to the rules and requirements of their employer. Some state laws, however, may contain overtime protections for exempt employees.
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