The Fair Labor Standards Act (FLSA) sets strict rules for how you pay employees, including who can earn overtime pay and how much it must be.
The basic concept is straightforward and the law encourages employers to set reasonable workweek limits. Rather than cap the number of hours employees could legally work in a week, as some European countries did in response to the growing labor movement in the early 20th century, Congress decided to penalize employers who required long hours by making them pay a premium in the form of overtime. That premium is set at 1.5 times the regular hourly rate for any time worked beyond 40 hours per week.
You must pay hourly, (register to read more)overtime, but you don’t have to pay salaried (exempt) employees anything extra for a longer workweek. That’s because salaried workers—who make up the employees we generally think of as white-collar office workers—work as long as they need to get their...
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