How does overtime work at your company? Overtime pay for hourly employees has an additional pay rate for working more than a specific number of hours in a week. There is a minimum for overtime in the United States.
This minimum requires hourly employees to be paid one-and-a-half times the regular hourly rate for work over 40 hours a week. Whether you are an employer or employee, it is important to understand your company’s guidelines.
When you’re an employer calculating overtime pay for an employee, the definition of “workweek” means something very significant in legal terms. It’s actually the basis of determining overtime for purposes of the Fair Labor Standards Act (FLSA).
