California Wage Law Attorney

What is FLSA Overtime

September 12, 2017 Overtime 0

What is FLSA Overtime


The FLSA (Fair Labor Standards Act) contains the overtime provisions for employees working in the U.S. Under FLSA guidelines, all nonexempt employees are eligible to receive overtime compensation for all hours worked in excess of 40 hours per week at 1.5 times (not less) their regular pay rate.


The overtime compensation under FLSA is due on a standard work day for the time period in which he/she performed overtime work. It may not be possible to waive off the overtime compensation requirements via a contract between the employing party and the worker.


Further, it is unacceptable to meet the overtime compensation requirement through ‘compensatory time-off’ except in special situation applicable solely to local and state government employees.


Incorrect calculation of overtime pay by employers


There are often cases in which the employers miscalculate the overtime compensation due to an employee. For instance, they may not include the regular salary compensation benefits like “shift differentials”, “longevity pay” or non-discretionary bonuses. This is when the confusion about “1.5 times of what” comes up.


In other cases, employers may make late payment of wages. The FLSA states that wages need to be paid to employees ‘when due’. This typically equates to following a regularly scheduled payday. FLSA states that “late pay” is usually equivalent to “no pay”. So, an employer who fails to pay timely wages might be liable by law to pay double damages or liquidated damages.


Overtime definition


As per the FLSA, overtime indicates “time worked after a recommended threshold”. The standard “workweek” or “work period” set by FLSA is ‘seven consecutive days”. The standard overtime threshold set by FLSA is 40 hours a week.


The FLSA does not set a limit on the amount of time worked by an employee who’s 16 years of age or older, in a given workweek.