Overtime Compliance
Definition
Ensuring employees are paid appropriately for hours worked beyond the standard 40-hour workweek.
What is Overtime Compliance?
Under the FLSA, non-exempt employees are entitled to 1.5 times their regular pay for any hours worked over 40 in a week. Additionally, many states have stricter or more specific rules, such as daily overtime requirements in California.
Why is Overtime Compliance Important for Employers?
- Non-compliance is one of the top triggers for DOL audits
- Potential consequences can include back wages, penalties, and class-action lawsuits
- Misclassifying employees increases the risk of unpaid overtime claims
FAQs
When is overtime pay required?
Under the FLSA, non-exempt employees must be paid 1.5x their regular hourly rate for all hours worked over 40 in a workweek.
Are salaried employees exempt from overtime?
Not necessarily. Exemption depends on both salary level and job duties under federal and state law, not just pay structure.
What are common overtime compliance mistakes?
Misclassifying employees, failing to track all hours worked, and not accounting for “off-the-clock” work are among the most frequent issues.
How ExtensisHR Can Help
We support compliance by:
- Accurately classifying exempt vs. non-exempt employees
- Providing compliant time-tracking tools
- Reviewing and auditing historical pay records
- Training managers on applicable wage and hour laws