Pay overtime and regular hours worked for the workweek on the same payday.
Under the Fair Labor Standards Act, or FLSA, nonexempt employees are entitled to overtime pay. Nonexempt employees are those who are not exempt from FLSA overtime pay requirements; this accounts for most hourly workers. As an employer, you are required to comply with federal overtime laws; however, many states have their own overtime laws as well. Consequently, you have to keep various factors in mind when calculating hourly wages and overtime.
Instructions
1. Learn the federal overtime laws. The FLSA requires overtime pay at one and one-half times the employee's regular pay rate for work hours exceeding 40 for the workweek; this applies to all nonexempt employees. The employee must physically work at least 40 hours for the workweek to qualify for overtime pay. If he has 37 work hours, for example, and takes eight personal hours for the week, pay all 45 hours at his regular pay rate. Your local U.S. Department of Labor, Wage and Hour Division, can help you to understand federal overtime laws.
2. Check with your state labor department for its overtime requirements. State overtime laws vary. One state may adopt the federal overtime laws entirely while another may use portions of the federal law plus its own regulations. The state may, for example, require overtime pay at one and one-half times the employee's regular pay rate for work hours exceeding eight and up to 12 in a workday, and double his regular pay rate for hours exceeding 12 in a workday.
3. Apply the overtime law that gives the employee the most pay if both federal and state law applies. Pay overtime wages with the employee's regular hourly wages on her next regularly scheduled payday.
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