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What is overtime and how is it paid?


In this blog, we will provide a very basic background of what overtime pay is and how overtime pay is earned.

What is overtime pay?

Overtime pay is the increased pay required for non-exempt employees when they work over 40 hours in a workweek. The Fair Labor Standards Act is the federal law that requires non-exempt employees to receive one and one-half times their regular rate of pay for all hours worked over 40 in a workweek.

The first step in determining if you are entitled to overtime pay for hours worked over 40 in a workweek is to determine if you are exempt (meaning not entitled to receive overtime) or non-exempt (entitled to receive overtime. There are a number of exemptions for certain types of employees who perform certain types of work. Each exemption has a number of requirements in order to meet the exemption. The fact that an employee is paid a salary is not dispositive of whether they are entitled to overtime wages because many employers misclassify employees. If you have any questions about whether you are exempt or not, you should contact our overtime lawyers.

Assuming you are non-exempt, you are entitled to one and one-half times your regular rate of pay for hours worked over 40 in a workweek. One common mistake is that employers pay overtime based only on the employees’ hourly rate rather than their regular rate of pay, which often includes other types of compensation such as nondiscretionary bonuses. If you receive bonuses, shift differentials, or other pay in addition to your hourly rate, it is possible that your employer may not be calculating your overtime rate correctly.

Another common mistake employers make is not properly calculating their employees’ hours worked. Some common issues, include automatic meal deductions (where employees do not receive an uninterrupted meal break), the exclusion of pre-shift or post-shift work, rounding to scheduled shift start or end times, work performed at home, exclusion of travel time, etc. If your employer is excluding any of the time that you are working when it calculates your compensable hours worked, then you should consult with our wage and hour lawyers who is experienced in handling overtime disputes.

How overtime pay is earned

Overtime pay is earned when non-exempt employees work more than 40 hours in any workweek. If that happens, then they are entitled to be paid overtime at the rate of one and one-half times their regular rate of pay. Assuming that overtime hours are worked, then an employee is entitled to overtime compensation. Although many employers and employees assume that overtime is calculated simply by multiplying their hourly rate by 1.5, it is not always that easy. If you have any questions about how your overtime pay rate is being calculated, you should speak with our overtime lawyers.

Schedule a free consultation with our Ohio overtime attorneys today.

Our experienced overtime lawyers are here to assist with any questions you have about your entitlement to overtime pay. This includes questions about whether you are correctly classified as exempt or non-exempt, whether you are being paid at the correct overtime rate, whether you are being fully paid for all overtime hours worked, or whether you have additional entitlement to overtime pay under the FLSA or state overtime laws. Regardless of how big or small the case, we are here to provide experienced representation with any overtime pay dispute. Contact us for a free consultation about any overtime wage and hour questions today.


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