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Employees can become administratively exempt by accepting a flat salary for a job that requires working extended hours.
A list of commonly used exemptions can be found on the U. The following employees are exempt from overtime pay requirements and are also listed on the United States Department of Labor's website:. For more information regarding specific exemptions, please visit the Fair Labor Standards Act Advisor for exemptions. In addition to the FLSA requirements, some states have implemented their own hours and overtime laws. To learn more about overtime work and pay, read OSHA's Extended Unusual Work Shifts page , where you can also learn about the health and safety hazards associated with long work hours to minimize risks for yourself or your employees.
For more information regarding overtime pay, you can visit the Wage and hour Division Overtime Pay website. Hospitals Institutions engaged in caring for the sick, aged, disabled, or mentally ill Schools for mentally ill, disabled, or gifted children Preschools Elementary schools Secondary schools Higher education institutions Federal, State, and local government agencies Day workers Housekeepers Chauffeurs Cooks Full-time babysitters.
The easiest calculation for overtime pay involves hourly employees. He has worked 40 hours of Straight Time and 10 hours of Overtime 50 hours minus 40 hours. Salaried employees are also entitled to overtime pay under the FLSA. The first step in calculating overtime pay for these employees is to determine the Regular Rate by diving the weekly salary by the number of hours it is intended to compensate.
However, the next step differs depending on whether the salary is for a fixed workweek of 40 hours, a fixed workweek of more than 40 hours, or a fixed workweek of less than 40 hours. The first step is to calculate his Regular Rate. The calculation is different here because any overtime hours are already partially compensated for by the weekly salary. The first step, as before, is to calculate the Regular Rate. However, the Overtime Hours—the hours between 40 and 50—have already been compensated by the salary.
Thus, in calculating the overtime pay cannot be calculated by multiplying the Regular Rate by 1. Thus, in the calculation, Overtime Hours should be multiplied by one-half the Regular Rate, resulting in the following formula:. What is the calculation when that same employee works more than 50 hours—say, 55 hours?
In that case, the employee is entitled to receive compensation at 1.
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