Overtime laws & HR compliance analysis

Overtime: What you need to know

The Fair Labor Standards Act (FLSA), also known as the federal Wage and Hour Law, requires enterprises engaged in interstate or foreign commerce and state and local governments to pay overtime of 11/2 times an employee's regular rate of pay for hours worked in excess of 40 hours in a workweek. The FLSA does not require that overtime be paid for hours worked in excess of 8 hours per day or on weekends or holidays. However, states are permitted to provide workers greater overtime protections than those offered by the FLSA.
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Workweek. A workweek consists of 7 consecutive 24-hour periods. It need not coincide with the calendar week but may begin on any day and at any hour of the day (29 CFR 778.105). For instance, some companies have adopted a workweek that runs Saturday through Friday.
Time of payment. Although overtime must be computed weekly, the FLSA does not require that it be paid on a weekly basis; it requires only that overtime be paid on the next regular payday covering the period in which the overtime is earned. If the amount of overtime owed cannot be calculated until after the next regular payday, the payment must be made as soon as possible, but no later than the next regular payday after the calculation can be made.
Notices (posting). Covered employers must post notices outlining the federal minimum wage and overtime regulations. The notices must be posted conspicuously and in enough places so employees can see them as they enter and exit the workplace. Posters are available from the DOL Wage and Hour Division.
Agreements to waive overtime barred. Employees may neither waive their right to be compensated for overtime hours worked nor agree to a lower overtime rate than ...

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