If an employee works for the same employer in two different jobs or at two different locations within the same workweek, the employer must combine all hours worked in that week to determine if overtime is due. Management has a duty to exercise control and prevent work they do not want performed; simply having a rule against unauthorized work is not enough if the employer knows or should know flsa overtime rules it’s happening. This “suffered or permitted” standard places a significant responsibility on employers to monitor work and ensure all time is captured, as they can be liable for unpaid wages even for work they didn’t explicitly authorize. Compliance with FLSA overtime rules protects businesses from lawsuits, financial penalties, and damage to their reputation.
Common Overtime Violations to Watch For
- Payroll taxes are unchanged as Social Security and Medicare taxes (7.65% each) still apply to all overtime earnings.
- Crucially, “hours worked” also includes any additional time the employee is “suffered or permitted” to work.
- Understanding two key terms—”workweek” and “hours worked”—is essential for determining FLSA compliance, particularly regarding overtime pay.
- It is a violation of the FLSA to fire, or in any other manner, discriminate against an employee for filing a complaint or for participating in a legal proceeding under this law.
- According to Akerman LLP, only the overtime premium required by the FLSA qualifies.
- Employees who do not meet the exemption requirements are “non-exempt” and must receive overtime pay for hours worked over 40 in a workweek.
Stated that Draft Form W-2 for 2026 now includes Box 12 codes “TP” (tips) and “TT” (qualified overtime compensation), and new Box 14b for occupation codes. Patriot Software states that only 12% of the workers were reported to be regularly employed under FLSA-qualified overtime conditions, and a further 5% were working FLSA overtime occasionally. For example, DOL estimated that an updated independent contractor rulemaking could come by the end of September, while a proposed rule on joint-employer regulations was given a December 2025 estimate. You are responsible for reading, understanding, and agreeing to the National Law Review’s (NLR’s) and the National Law Forum LLC’s Terms of Use and Privacy Policy before using the National Law Review website.
To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 per week. Employers may use nondiscretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis, to satisfy up to 10 percent of the standard salary level. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the Department’s regulations. Currently, workers covered by the FLSA are entitled to the minimum wage and overtime pay at a rate of not less than one and one-half times their regular rate of pay after 40 hours of work in a workweek. The regular rate of pay is calculated by dividing the total pay for employment (except for the statutory exclusions) in any workweek by the total number of hours actually worked to determine the regular rate.
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Discover practical strategies for optimizing overtime use to balance workload, cost, and employee welfare effectively. It is a violation of the FLSA to fire, or in any other manner, discriminate against an employee for filing a complaint or for participating in a legal proceeding under this law. With 18 seconds left in the game and facing fourth and 18, Boise State pulled of an insane hook and lateral play for a touchdown to force overtime. When the dust settled after seven overtimes, Arkansas escaped with the win.
It also set the record for most points scored in a game as Texas A&M won 74-72. When an NFL game goes into overtime in the regular season, 10 minutes are added to the clock. It may seem silly, but the NFL has long been criticized for how it handles overtime, while the NCAA continues to refine its format to ensure the best product on the field, without keeping fans in the stadium until the wee hours of the morning.
Who qualifies for this deduction
Under the FLSA, employees are classified as exempt or non-exempt. SHRM Members enjoy unlimited access to articles and exclusive member resources. This members-only toolkit provides insights into the benefits and risks of using overtime, including solutions for challenges like workforce dependency and safety concerns. Violators of the child labor provisions are subject to a civil money penalty of up to $10,000 for each young worker who was employed in violation.
- Wage and Hour’s enforcement of the FLSA is done by investigators stationed across the United States.
- Explore how a comp time policy can help you manage overtime, improve flexibility, and comply with labor laws.
- You should apply both the state and federal tests to determine an employee’s status under both federal and state law.
- This calculation must be performed for each workweek, because your regular rate can change from week to week depending on factors like bonuses earned or hours worked.
Overtime Pay
Its main goals are to ensure fair labor conditions by setting standards for minimum wage, overtime pay, employer recordkeeping, and child labor. These standards apply to many employees in both the private sector and government jobs at the federal, state, and local levels. A highly compensated employee (HCE) is someone who earns a high annual compensation (according to salary thresholds in the FLSA) and whose role includes one or more executive, administrative, or professional duties. The FLSA exempts “highly compensated employees” from the overtime pay requirement. The 2019 rule increased the total annual compensation requirement for the “highly compensated employees” exemption to $107,432 per year (at least $684 must be paid on a weekly salary basis). The regular rate includes all remuneration for employment except certain payments excluded by the Act itself.
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CWHSSA also applies to most federally assisted construction contracts. In cases where an employee is subject to both the state and federal overtime laws, the employee is entitled to overtime according to the higher standard (i.e., the standard that will provide the higher overtime pay). The answer is yes, employers need to continue withholding federal income tax on all overtime earnings.
A 2018 game between LSU and Texas A&M went seven overtimes, so the NCAA instituted that teams had to go for two starting in the third period. Then, in the fifth overtime period, teams wouldn’t have possessions anymore and would alternate two-point conversion attempts until one team scored and the other didn’t. For college, the overtime rules are the exact same, no matter if you are playing in a Week 0 game in Europe or if you are in the national championship. “Is Extra Pay Required For Weekend Or Night Work?”Additional information about overtime pay from the elaws FLSA Advisor. Explore how a comp time policy can help you manage overtime, improve flexibility, and comply with labor laws. Explore what corporate payroll services offer and how to choose the right provider to streamline payments, taxes, and compliance.
One of the most significant protections under the FLSA is the requirement for overtime pay. An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work. Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay.
