Overtime Regulations

By Entrepreneur Staff

Pencil

Overtime Regulations Definition:

The laws that regulate how to compensate employees for working in excess of a standard workweek

Excluding certain industry-specific exceptions, federal and state law requires that the nonexempt employees be paid when they work overtime. Nonexempt employees must be paid one-and-a-half times their normal rate of pay for hours worked in excess of 40 hours during a workweek. A workweek is defined as seven consecutive 24-hour periods. Although a workweek can begin on any day, it must be fixed for that employee and can't be changed so as to evade applicable overtime laws.

Most states have their own overtime laws, and if they're more favorable to employees, those are the ones you must follow. For example, under California law, employees who work more than eight hours during a single day are entitled to overtime, even if they don't work more than 40 hours during a given workweek (the federal requirement).

Remember, nonexempt employees can be salaried as well as hourly. So don't make the mistake of assuming that just because an employee is salaried, he or she is exempt from overtime.

More from Legal Issues

Fair Labor Standards Act

A federal law enforcing minimum standards that employers must abide by when hiring employees

See full definition

Family Medical Leave Act (FMLA)

The 1993 law that entitles a covered employee to take up to 12 weeks of leave in a 12-month period for the birth or adoption of a child or the serious health condition of the employee or the employee's child, spouse or parent

See full definition

Contracts

A legal document between parties that clearly spells out just what is expected and required of each party

See full definition

Americans With Disabilities Act (ADA)

A federal law enacted in 1990 that makes it illegal for employers with 15 or more employees to refuse to hire qualified people with disabilities if making "reasonable accommodations" would enable the person to carry out the duties of the job

See full definition

Latest Articles

Business News

Is MySpace Coming Back? An 18-Year-Old Made a Clone and It Just Hit 1 Million Users.

The founder of the MySpace clone website wouldn't have been old enough to sign up for the original when it first launched in 2003.

Business News

'Let It Go': A Couple Has Spent $400K Suing Disney After Being Banned From the Park's Exclusive 33 Club. Social Media Reactions Have Not Been G-Rated.

After getting banned from the exclusive members-only club for alleged bad behavior, a California couple has spent a fortune trying to get back to paling around with Mickey.

Science & Technology

AI for the Underdog — Here's How Small Businesses Can Thrive With Artificial Intelligence

How small businesses can harness the power of AI to streamline operations, enhance customer experiences and drive growth.