Overtime


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Updated: 4/11/2007 10:26 am Published: 4/11/2007 10:26 am


If you're covered under the Fair Labor Standards Act, you're entitled to receive overtime compensation when you work more than 40 hours in a given workweek. The overtime rate of pay must equal to at least one and a half times your regular rate of pay for all hours worked over 40 in a workweek. When calculating overtime, your employer is required to include in your regular rate of pay all non-discretionary bonuses you receive from your employer throughout the year. Non-discretionary bonuses are bonuses given to you based on your performance. Discretionary bonuses, bonuses given as gifts, can't be figured into your regular rate of pay. These include anniversary and holiday bonuses. Overtime pay earned in a particular workweek must typically be paid on the regular payday for the pay period in which your wages were earned. The number of overtime hours you can accumulate and when you can accumulate them is not limited by federal law. Consequently, if working on a Sunday, a holiday, or during a lunch break puts you over 40 hours, you must be paid overtime for those hours. Under no circumstances can your right to receive overtime compensation be contracted away. Even if your employer makes you sign a waiver not to work more than 40 hours a week, he or she can't refuse to pay you if you do.

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