Do I Have to Pay My Employees Overtime?

California Department Of Labor Overtime - Do I Have to Pay My Employees Overtime?

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However, the Flsa contains several exceptions to the overtime pay requirement for distinct kinds of businesses and distinct kinds of employees. Because overtime pay can cost your firm a important estimate of money, you need to be aware of which employees are non-exempt, or subject to the Flsa overtime pay requirement, and which employees are exempt from the overtime pay requirement under some exception.

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California Department Of Labor Overtime

For instance, the overtime pay requirement does not apply to quarterly hours worked on weekends, nights, and holidays, so long as there is not more than 40 hours worked in one week period. In other words, you are not required to pay overtime to an worker solely because he or she works on Sundays. Likewise, if your employees are executive, administrative, professional, computer, or exterior sales employees, as defined by the division of Labor regulations, and draw a wages of at least 5 per week, or ,660 per year, then they are exempt from the overtime pay requirement. division of Labor regulations provide very definite advice about which positions qualify as exempt, normally based on the types of duties that those positions involve. For instance, in order for an administrative position to qualify as exempt, the worker's duties typically must involve supervision responsibilities, supervision of at least two other workers, and authority to hire and/or fire other employees. Furthermore, these types of exempt positions normally must be paid on salary, rather than on an hourly basis.

Employees can be covered by the Flsa in two different ways. Employees are entitled to firm coverage if they work for businesses or organizations that have at least 0,000 per year in sales, hospitals, nursing homes, schools, or preschools. If there is no firm coverage, then employees may have individual coverage under the Flsa if their job duties involve them in business or the output of goods for commerce, like factory workers or citizen who tour to other states for their jobs. Domestic assistance workers, such as maids or full-time babysitters, also qualify for coverage under the Flsa.

You also have to be mindful of your employees' duties when classifying them as exempt or non-exempt. Some positions wish a worker to accomplish both exempt and non-exempt duties. Therefore, depending on either the worker's duties for that particular week qualify as exempt or non-exempt, you may or may not be required to pay that worker overtime, should he or she work more than 40 hours in a one week period.

Finally, some states have also enacted laws that mandate overtime pay in distinct circumstances, or that provide for overtime pay that is more than the Flsa proper of one and one-half times the quarterly wage. If both the Flsa and a state overtime law apply to your business, you must pay whichever overtime rate is higher to your non-exempt employees who work overtime.

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