Overtime: One and one-half times an employee's regular rate of pay for hours worked over 40 in a work week.
Each element of this deceptively simple definition carries a lot of baggage.
Miscalculation of overtime is one of the most common violations under the federal Fair Labor Standards Act.
What's a week?
A fundamental principle of overtime is that each workweek stands alone. That means you can't average the hours worked over two weeks to minimize your exposure to overtime.
A workweek is seven consecutive 24-hour days. You can have different workweeks for different employees, but you can't switch the days in an individual employee's week unless it's a permanent change.
An employee's weekly work hours could look like this:
M T W TH F
12 8 8 8 4
and you would avoid paying overtime because there's no federal law that requires daily overtime. However, some states, including California, do se...(register to read more)