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What To Know About Overtime Rules

The FLSA does not limit the number of hours employees aged 16 and older can work in a week and does not require overtime pay for weekend or holiday work unless overtime hours are worked. An employee's workweek is a fixed 168-hour period, and averaging hours over multiple weeks is not allowed. Overtime eligibility depends on whether employees are classified as exempt or nonexempt. Exempt employees meet specific criteria and are not entitled to overtime, whereas nonexempt employees must be paid overtime for hours worked over 40 in a workweek. Compliance with state laws and consulting legal counsel is advised to avoid penalties for unpaid overtime. Click here for article.

  • Workweek Definition: A workweek is a fixed 168-hour period (seven consecutive 24-hour periods) that does not need to align with the calendar week.

  • Employee Classifications for Overtime: Nonexempt employees must be paid overtime for hours worked over 40 in a workweek. Exempt employees, typically in professional, executive, or administrative roles, are not entitled to overtime if they meet specific criteria.

  • Exempt Employee Criteria: Exempt employees must earn at least $684 per week, receive a salary, and perform specific job duties. Additional exemptions include outside sales executives and certain skilled professionals.

  • Overtime Payment Obligations: Employers must pay the applicable overtime premium to nonexempt employees regardless of authorization. Failure to pay can result in back wages, fines, and legal fees. Compliance with state laws and legal consultation is recommended.

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