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Overtime

Under the Fair Labor Standards Act (FLSA), “overtime” means “time actually worked beyond a prescribed threshold.” The normal FLSA “work period” is the “work week” — 7 consecutive days — and the normal FLSA overtime threshold is 40 hours per work week. Some jobs may be governed by a different FLSA overtime threshold. Certain employers may be mistakenly:

Treating employees as “exempt” from the FLSA overtime requirements

Failing to identify, record, or compensate “off-the-clock” hours spent by employees performing compensable, job-related activities.

Failing to include “wage augments” such as longevity pay when calculating an employee’s overtime rate.

It is important for employers to understand their obligations, as failing to properly compensate their employees could lead to serious legal liability for unpaid wages, punitive damages, and legal expenses incurred by the employee.

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