How Do Overtime Laws Affect You?
The Department of Labor’s Fair Labor Standards Act (FLSA) requires employers to pay employees overtime if they work more than 40 hours in a workweek. The overtime rate is 1.5 times the employee’s regular pay rate. While this is a federal standard, there are exceptions and different types of overtime requirements that can vary by city and state.
Also, the law doesn’t require overtime pay for everyone. Some workers, especially those in executive, administrative, and professional roles (EAP) can be exempt. To be exempt, an employee needs to meet three basic requirements:
- They must get a fixed weekly salary that doesn’t change based on how much or how well they work
- Their main job duties must involve executive, administrative, or professional work
- Their salary must be above a certain minimum amount (currently $35,568)
To see how overtime pay might impact your budget, use the calculator below.
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