Overtime Pay | Practical Law

Overtime Pay | Practical Law

Overtime Pay

Overtime Pay

Practical Law Glossary Item 2-507-1821 (Approx. 3 pages)

Glossary

Overtime Pay

The premium pay nonexempt employees are required to receive under federal, state, or local law for hours worked over a specified number each workweek or workday.
The Fair Labor Standards Act (FLSA) establishes the federal overtime pay requirements. Under the FLSA, employers generally must pay nonexempt employees overtime compensation of at least 1.5 times their regular rate of pay for all hours worked over 40 in any workweek.
State and local law may impose additional or different requirements for overtime pay. For example, states and localities may require overtime pay for hours worked in excess of a daily maximum or for work on the sixth or seventh consecutive day of work. For more information, see Wage and Hour Laws: State Q&A Tool.
Employers must comply with the applicable federal, state, or local law that provides employees with the greatest rights and protections.