What is the Fair Labor Standards Act (FLSA)?

The Fair Labor Standards Act is a federal law that establishes game judi slot, among other provisions, when and how employers must pay their employees for overtime. As the rules stand today, any employee who is not considered exempt under the law must be paid overtime at a rate of 1.5 times their regular pay for every hour they work beyond 40 hours in one workweek.

The U.S. Department of Labor (DOL) defines a workweek as any “fixed and regularly recurring period of 168 hours,” which essentially means seven full, consecutive days. Often, this workweek will be Monday through Sunday, as on a standard calendar. However, the FLSA does not explicitly require that employers adhere to the standard calendar for their workweeks daftar slot online. A Wednesday-through-Tuesday workweek is as valid as a Monday-through-Sunday workweek.

There is no limit to how many overtime hours an employee age 16 or older can work, so long as they are compensated appropriately. For any time a nonexempt employee works beyond that 40-hour maximum, they must be paid at the overtime rate of 1.5 times their standard rate. If not, the employer is in violation of the FLSA.

The FLSA does not count hours worked on Saturdays, Sundays and holidays as overtime. This means that if your employee works eight hours per day Tuesday through Saturday, their Saturday hours are not overtime. However, if the employee works a 41st hour on Saturday, that hour counts as overtime.

Current overtime regulations

As explained earlier, overtime laws are outlined in the FLSA, which is administered by the DOL. The DOL is responsible for interpreting the law and setting precise rules for businesses. These rules establish when employers must pay overtime to employees, the rate at which workers earn overtime pay, and which types of employees are exempt from overtime protections. [Interested in a solution that helps make sure you’re compliant with the law? Check out our time and attendance system best picks.
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“Employers with employees earning less than the overtime threshold need to keep accurate time and attendance records,” said Sally Baraka, senior vice president and general counsel for Paycor. “This is especially important for employers with remote employees who work from home. Other employers may choose to increase the compensation of its employees who are earning salaries close to the threshold. While there is some time before the rule takes effect, it’s important that employers get out ahead of this issue, and review their employee classifications and wages to determine impact.”

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There are two major consequences for employers that violate overtime laws. The first is potential employee lawsuits, which can quickly become expensive and generate negative publicity. For FLSA violations, employers are generally required to provide back pay to affected employees as well as liquidated damages equal to back pay owed. That immediately doubles the cost of compliance upfront, without taking into consideration any legal fees employers would have to cover.

The government could also act against noncompliant employers. The DOL’s Wage and Hour Division can levy fines of up to $10,000 for willful FLSA violations that the agency uncovers. If it finds employers repeatedly, willfully violated the law, penalties could involve imprisonment. In other words, it pays to comply with the overtime laws the first time.

Key TakeawayKey takeaway: The FLSA requires that employers pay employees time-and-a-half for all hours worked over 40 in a workweek.