What is the federal law on overtime pay?

The federal law on overtime pay is the Fair Labor Standards Act (FLSA), which was established in 1938 and is enforced by the U.S. Department of Labor’s Wage and Hour Division. This law requires employers to pay their employees time-and-a-half for any hours worked over 40 in a workweek. So, if an employee works 45 hours in a week, their employer must pay them for five hours at their regular rate of pay, plus five hours at 1.5 times their regular rate of pay (also known as “time-and-a-half”). The FLSA also requires employers to pay overtime to employees who are under the age of 18, as well as employees classified as “exempt” from overtime. These exemptions can include certain administrative, executive, or professional employees. It’s important to note that the FLSA does not require employers to provide employees with paid time off, such as vacation or sick days. In Washington, there is a higher overtime rate than the federal rate. The state of Washington requires employers to pay their employees two times their regular rate of pay for any hours worked over 40 in a workweek. Furthermore, some local jurisdictions in Washington may even require employers to pay employees three times their regular rate of pay for overtime hours. So, while the federal law on overtime pay is the Fair Labor Standards Act, employers in Washington may need to pay their employees more than the federal rate due to state and/or local laws. If a business operates in multiple locations, it’s important for them to be aware of any laws that are specific to their location.

Related FAQs

What is the difference between an employee and an independent contractor?
What are the rules for tip-pooling?
How are breaks and overtime calculated?
Are employers allowed to pay different wages for the same job?
Are employers allowed to pay tipped employees less than minimum wage?
Are employers allowed to pay tipped and non-tipped employees different wages?
What are the differences between compensatory time and paid time off?
What is the difference between a minimum wage job and a living wage job?
Are employers allowed to pay commissions in lieu of an hourly wage?
Are employers required to provide employees with work breaks?

Related Blog Posts

What is Wage and Hour Law and How Does it Affect Your Business? - July 31, 2023
What Employers Need to Know About Wage and Hour Law - August 7, 2023
The Basics of Payroll Law and Compliance - August 14, 2023
Compensating Your Employees - Tips for Wage and Hour Law Compliance - August 21, 2023
Understanding Overtime Rules Under Wage and Hour Law - August 28, 2023