Boudreaux Many companies, both large and small, have employees that work in a dual capacity over the course of each workweek. These employees essentially perform two separate job descriptions with the company, and each job is usually compensated at a different hourly rate of pay. The typical factual scenario involves a full-time employee who works in his or her regular job for one rate of pay during regular business hours and performs separate job functions after hours for the same employer at a different rate of pay. In this situation, company management has two options with respect to calculating overtime pay for this employee.
A worker may receive overtime pay plus equal time off for each hour worked on certain agreed days, such as public holidays. In the United States, such arrangements are currently legal in the public sector but not in the private sector.
With comp time, the worker could or would have to forgo the 12 hours of overtime pay and instead take 8 paid hours off at some future date. Thus, an employee might work 48 hours in one week, and 32 hours the next week assuming over 40 hours is overtimeand be paid an extra amount equivalent to 4 hours work 8 multiplied by 0.
In Australia, such arrangements both in the private and public sector are common. In some cases, particularly when employees are represented by a labour unionovertime may be paid at a higher rate than 1.
In some factories, for example, if workers are required to work on a Sunday, they may be paid twice their regular rate i. Overtime laws by jurisdiction[ edit ] European Union[ edit ] Directives issued by the European Union must be incorporated into law by member states.
Employers and employees can agree to opt out, under certain circumstances. From 1 August their maximum working week fell to 48 hours. Member States of the EC may exempt: These are workers whose working time is not measured or pre-determined or can be determined by the workers.
Other categories can be exempted from the directive's key provisions provided compensatory rest or appropriate protection is granted.
These include employees who work a long way from home, or whose activities require a permanent presence or continuity of service or production, or who work in sectors which have peaks of activity. Examples include off-shore workers, security guards, journalists, emergency workers, agricultural workers, tour guides, etc.
The FLSA establishes a standard work week of 40 hours for certain kinds of workers, and mandates payment for overtime hours to those workers of one and one-half times the workers' normal rate of pay for any time worked above 40 hours.
The law creates two broad categories of employees, those who are "exempt" from the regulation and those who are "non-exempt". Exempt[ edit ] Independent contractors are not considered employees and therefore are not protected by the FLSA. Several factors determine whether a worker is an employee, who might be entitled to overtime compensation, or an independent contractor, who would not be so entitled.
The employment agreement stating that a party is an independent contractor does not make it necessarily so. The nature of a job determines whether an employee is entitled to overtime pay, not employment status or the field of work. To qualify as an administrative, professional, or executive employee and therefore not be entitled to overtime, three tests must be passed based on salary basis, duties, and salary level.
The tests vary between administrative, professional, and executive employees based on their different duties and salary levels. There are many other classes of workers who may be exempt including outside salespeople, certain agricultural employees, certain live-in employees, and certain transportation employees.
Employees can neither waive their FLSA protections nor abridge them by contract. An employer that engages in any form of verifiable retaliation would be liable under the Fair Labor Standards Act Section b [ permanent dead link ] for equitable relief including reinstatement, promotion, payment of lost wages, and payment of liquidated damages.
Acts of retaliation include terminating employment, disrupting the workplace, threats, acts of physical violence, and constructive discharge. See Working time for a complete listing.
Inthe United States Department of Labor proposed dramatic changes to certain exemptions from federal minimum wage and overtime requirements. These changes are anticipated to take effect in Julybut as of Januarystill are pending final approval. Bush and the Department of Labor proposed changes to regulations governing implementation of the law.
According to one study, the changes would have had significant impact on the number of workers covered by overtime laws and have exempted several million additional workers. In particular, the new rules would have allowed more companies to offer flextime to their workers in lieu of overtime. The definition of exempt employees ineligible for overtime is regularly tested in the courts.
A recent case is Encino Motorcars v. Navarrowhich addresses the question of whether automobile dealer service advisors are eligible for overtime.
A company may harm themselves by docking a salaried employee for disciplinary reasons. The New York Times noted in that "Despite their appeal, the apps have faced a wave of criticism, including concerns over wheelchair accessibility and driver pay.
Wage orders of the Industrial Welfare Commission  California employers must comply with both, since there are two sources of applicable law federal and state. In California, based on California Labor Codeonly an employment relationship is required for overtime rules to apply.
Under California law, workers are generally presumed to be employees, not Independent contractors.Overtime Pay. Showing top 8 worksheets in the category - Overtime Pay. Some of the worksheets displayed are Hourly and overtime pay version 2 and answer keys, Retroactive overtime pay work, Fact 23 overtime pay requirements of the flsa, Work 34 gross pay with overtime, Work 33 calculating gross pay with overtime name, Casey crewe 6 7 8 7 9 5 3 12, Wages and overtime teacher notes activity.
To calculate overtime, most employees will simply need to figure out their regular rate of pay and multiply this number by the number of overtime hours worked. Despite this seemingly simple equation, many companies (both large and small) underpay their workers by miscalculating and failing to pay overtime.
By using the following tips, you should be able to properly calculate overtime pay and when it’s required by law. Let’s start with properly classifying your employees as exempt or non-exempt.
The difference is that non-exempt employees are entitled to overtime compensation of X their regular rate. Week 3 Activity – Calculate Overtime Pay Week 3 Activity – Calculate Overtime Pay TCO #4 – Given a simple business problem that requires one or more decisions, create a solution algorithm that uses decisions with logical and relational expressions.
May 27, · Rounding Rule May Determine Calculation of Overtime Pay. May 27, an employer would not be allowed to dock employees who arrive seven minutes late and could lawfully refuse to pay overtime when an employee works seven minutes beyond the end of a shift.
I know nothing of this activity. If an employee does work more than 8 hours in a day, only the first 8 hours worked each day are used to calculate total hours for weekly overtime.
For example, if an employee worked the following 44 hours in a week, he/she would be entitled to 40 hours of regular pay, and 4 hours paid at time-and-a-half.