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CONSULTING, Marketing

Overtime Myths

I’ve been addressing questions about this topic FOREVER.  There appears to be quite a bit of confusion over who and when employees are eligible for overtime pay.

Wage and overtime rules (Federal & State) are crucial to businesses.  Unfortunately, being unaware of the rules can cost you a bundle.  In most states, the magic number is 40 hours in a week.  Simply put, an employee is entitled to one and a half times his/her normal hourly pay for time worked above and beyond 40 hours.

Mistakes made by employers tend to fall into one of these myths:

Myth 1:  SALARIED EMPLOYEES DO NOT RECEIVE OVERTIME.

The Fair Labor Standards Act, which regulates wage and hour laws, categorizes employees as follows:  Exempt employees do NOT earn overtime.  Non-exempt employees can be paid a salary, daily rate, or an hourly rate.  “Salaried” is not a category for overtime purposes.  If your employee works more than 40 hours they are entitled to overtime at all times.

Myth 2: EMPLOYEES WITHOUT APPROVAL OF OVERTIME DO NOT HAVE TO BE PAID FOR IT.

Regardless of whether or not the work was permitted, you must pay when overtime work has been performed.  Clearly communicate the rules of your company regarding the “approval” procedures for overtime.

Myth 3:  NO OVERTIME ON TIME SHEETS?  DON’T HAVE TO PAY THEM, RIGHT?

Unfortunately, the burden is on the employer to prove that employees were paid properly.  Relying strictly on time sheets may not help you if you are investigated by the DOL (Department of Labor).

You need to verify with your employee that his/her time sheet is correct and includes overtime hours worked.

Myth 4:  EMPLOYEES CAN CHOOSE TIME OFF RATHER THAN OVERTIME PAY.

At this time, comp time in lieu of overtime pay is NOT allowed in the private sector.

TAKE AWAY:

When in doubt, pay it, and don’t believe anyone who thinks they have a great solution for getting out of overtime without verifying their information first.  Rumor has it the government doesn’t make it easy to get out of EVER.

12 Comments

  1. Rosanna

    August 5, 2020 at 4:39 pm

    Thank you for reading! Rosanna

  2. Rosanna

    June 5, 2019 at 12:10 pm

    Camille,
    I have been blogging for some time now and it just take consistency and research. I really love what I do, so it makes it easy ( or look easy). I appreciate you being a reader taking time to comment.
    Rosanna

  3. Rosanna

    May 28, 2019 at 8:38 pm

    Penni,
    Thank you for ” returning the favor”. I hope you enjoyed the information and found it to be helpful. Have a great day.
    Rosanna

  4. Rosanna

    May 28, 2019 at 8:37 am

    Dominique,
    You are so Welcome! I am happy to hear that you found the information to be helpful to you. Thank you so much for being a reader.
    Rosanna

  5. Rosanna

    May 19, 2019 at 9:15 am

    Hello,
    Thank you! I am happy you found the information helpful and enjoyed the article. I appreciate you being a reader and taking time to comment and show support
    Rosanna

  6. Rosanna

    May 16, 2019 at 1:40 pm

    Hello,
    Thank you so much for taking time to comment. I appreciate you being a reader and showing support. Have a wonderful day!
    Rosanna

  7. Rosanna

    May 16, 2019 at 9:03 am

    Hello,
    Thank you so much for taking time to comment. I appreciate you being a reader and showing support. Have a wonderful day!
    Rosanna

  8. Rosanna

    May 16, 2019 at 8:55 am

    Hello,
    Thank you so much for taking time to comment. I appreciate you being a reader and showing support. Have a wonderful day!
    Rosanna

  9. Rosanna

    May 15, 2019 at 9:14 am

    Hello,
    Thank you so much for taking time to comment. I appreciate you being a reader and showing support. Have a wonderful day!
    Rosanna

  10. Rosanna

    May 10, 2019 at 10:16 am

    Jewell,
    Thank you for the heads up and I apologize for the inconvenience. I will look into the issue. I appreciate you being a reader.
    Rosanna

  11. Rosanna

    May 9, 2019 at 9:15 am

    Melissa,
    Thank you do much for your comment. I hope you continue to find the material helpful for you.
    Rosanna

  12. Rosanna

    May 3, 2019 at 7:51 am

    Stanley,
    I just heard about this issue. My IT guy is checking into it now.
    Thank you for being here.
    Rosanna

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