The Facts About Overtime

The definition of overtime is the additional compensation paid to an hourly employee who works more than 40 hours in a work week.  Federal law requires hourly employees who work more than 40 hours in a work week must be paid at a higher rate for these overtime hours. The rate at is a minimum is of 1 ½ times the regular pay rate.

Exempt employees are required to work the number of hours necessary to complete their job responsibilities. They fall in a category where their compensation does not fluctuate based on the actual number of hours worked.  They are not paid anything extra for working overtime. Something you should consider when applying for jobs.

Non-Exempt employees must be paid overtime if they work more than 40 hours per work week.  A lot of the time, employers focus on keeping non-exempt workers hours down because of the time and a half compensation that is required by law.

Overtime pay is the amount of overtime paid to each employee in a pay period and is calculated as follows: Hourly pay rate x 1.5 x number of overtime hours worked.

It is a serious violation for employers to avoid paying overtime.  The government has penalized company owners and officers for failing to pay overtime which may include large fines or even imprisonment.

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