Overtime Law

Overtime pay regulations modified a very old federal law called the Fair Labor Standards Act of 1938 (FLSA), which used a uniform overtime pay standard based on state minimum wage rates. The new law went into effect in August 2004 and enforces the employee's right to overtime pay. The rate rule did not increase the overtime pay rate, but required a minimum salary for employees to earn.

Fair Labor Standards Act

FSLA Overtime pay must be at least one-and-one-half times the employee's regular rate of pay, which is determined by dividing the total pay in any work week by the total hours worked in the week. This pay is based on actual hours worked in a seven-day workweek. Holiday hours, vacation time or sick leave are not counted in figuring these types of hours. The wage and labor law states that if the total hours for the week do not exceed 40 (federal) or 48 (Minn.), you are not entitled to overtime.

Employees covered by the Act must receive pay for hours worked in excess of 40 hours in a workweek at a rate not less than time and one-half their regular rates of pay. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. The Act does not require overtime pay for work on Saturdays, Sundays and holidays.

Department of Labor: Fairpay Initiative

Under the new federal FairPay rules, workers earning less than $23,660 a year or $455 a week are guaranteed protection. If you're not receiving compensation for the extra hours that you worked, our attorneys can assist your claim for a resolution.

Federal government labor laws for salary workweek exceeding 40 hours: A fixed salary for a regular workweek longer than 40 hours does not discharge FLSA statutory obligations. For example, an employee may be hired to work a 45 hour workweek for a weekly salary of $300. In this instance the regular rate is obtained by dividing the $300 straight-time salary by 45 hours, resulting in a regular rate of $6.67. The employee is then due additional overtime computed by multiplying the 5 extra hours by one-half the regular rate of pay ($3.335 x 5 = $16.68).

If you feel you're not getting your rights to correct pay, our employment lawyers can help you get your lost wages. They are knowledgeable with all areas of employment law and overtime pay. Our attorneys can explain the new regulations to see if your employer has taken advantage of your time without compensation.

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Updated: LW

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Have you or someone you know been denied overtime pay? If so, contact one of our experienced employment lawyers in your area today!