Minimum Wage and Overtime Pay

Bona fide meal periods (typically lasting at least 30 minutes), however, serve a different purpose than coffee or snack breaks and, thus, are not work time and are not compensable. At the minimum wage rate, she would have earned $16.10 per hour. If Greta were paid minimum wage for her 10 hours of work, she would have received $161 in wages. After determining that the laborer is being hired as an employee and is
eligible for employment, an employer should consider whether the law
mandates a minimum pay rate for the employee. This issue is somewhat
complicated because federal and state laws address minimum wage but
impose slightly different requirements.

​A tipped employee is someone who performs work that customarily and regularly receives more than $135 a month in tips. No credit card or other non-cash transaction fees can be deducted from the tips of any worker. All tips and gratuities paid by cash, credit card, or other non-cash method of payment are the property of the employee receiving them. The United States Department of Labor (USDOL) published its revised final regulations concerning its overtime requirements under the FLSA on September 24, 2019. The new federal regulations took effect on January 1, 2020. An on-call employee who is not required to be at the work site, and who is effectively free to use his or her time for his or her own purposes, is not working while on call and need not be paid.

SCOTUS: $200K Per Year And Employee Still Entitled To Overtime Pay

The Department believes that its proposed rule would reduce the risk that employees are misclassified as independent contractors, while providing added certainty for businesses that engage (or wish to engage) with individuals who are in business for themselves. Local, state, and federal government websites often end in .gov. State of Georgia government websites and email systems use “georgia.gov” or “ga.gov” at the end of the address. Before sharing sensitive or personal information, make sure you’re on an official state website. Altogether, for this day, Joe will have worked 8 work hours total.

Minimum Wage and Overtime Pay

However, questions may arise regarding whether a worker is an employee (who is entitled to the District’s minimum wage protections) or an “independent contractor” (who is not entitled to those protections). To determine whether a worker is an employee or independent contractor, the District’s courts and regulatory agencies will weigh the following factors. If these factors are present, it is more likely that a worker will be found to be an employee, rather than an independent contractor. If the court can reasonably infer from the employee’s proof that
work was performed with improper compensation, the burden is on the
employer to provide evidence to the contrary. Therefore, employers
should maintain employment records to comply with the FLSA and to ensure
that, as employers, they have an adequate response to possible employee
claims. Unless exempt, employees covered by the Fair Labor Standards Act must receive at least time and one-half their regular pay rate for all hours worked over 40 in a workweek.

Who gets overtime?

Most Minnesota producers are subject to minimum wage
requirements even if exempt from federal minimum wage. Most employees have the right to be paid at least the federal minimum wage ($7.25) for all hours worked regardless of whether you are paid by the hour, the day, or at a piece rate. Some state laws and local laws provide greater employee protections; employees are entitled to the highest of the local, state, or federal minimum wage that applies to them. Your employer must pay you for all hours worked and many employers voluntarily pay employees time-and-a-half their usual wage for hours worked on holidays, but it is not required by law. It is clear after Helix that employees paid on a day or hourly rate will never qualify for an FLSA exemption, and will always be subject to the FLSA’s overtime requirements.

Minimum Wage and Overtime Pay

Hours worked in two or more workweeks shall not be averaged for computation of overtime. Unless you regularly work a shift that is less than four hours long, your employer must pay you for at least four hours of work for https://www.bookstime.com/ each day you report to work. Most employees employed in the District of Columbia are entitled to the District’s minimum wage. There are a few narrow exceptions to the minimum wage laws explained in more detail below.

Disability Compensation Division

Despite the fact that the rig worker in Helix was highly compensated and earned more than $200,000 per year, he did not meet the salary basis test to qualify for an exemption based on his pay arrangement. To satisfy the salary basis test for purposes of the FLSA, an employee must be paid a fixed, predetermined amount for a workweek, regardless of the amount of time worked. Supreme Court weighed in on overtime exemptions under the Fair Labor Standards Act (FLSA) and held that a highly compensated employee was entitled to overtime pay because he was paid a day rate and not a guaranteed weekly salary. While the new regulations do not create additional records to be kept, employers may benefit from maintaining specific records about when tipped employees may be performing additional non-tipped duties during a pay period. Only governmental employers are exempt from the wage payment provisions.

You have the right to be paid for all hours you work in a workweek. In general, “hours worked” includes all time an employee must be on duty, or at the place of work. Normally, time spent in training, traveling from site to site during the day, and doing repair work must be paid. For instance, an employee who works nine hours per day for four work days may be scheduled for only four hours on the fifth day of the week to avoid overtime.

Download wage and hour posters for workplaces

Employers should ensure strict compliance with the requirements of wage and hour laws and regulations. Even if the employee and employer agree on a certain pay arrangement, the employer is still https://www.bookstime.com/articles/minimum-wage-and-overtime-pay subject to the FLSA and its requirements. In Helix, the Supreme Court interpreted the law and regulations technically and rigidly, and did not provide much room for flexibility in compliance.

What is the overtime policy in the US?

The overtime rate must be at least 1.5 times the amount of your hourly pay rate. Your employer must pay you at the overtime rate for the extra hours you worked. Learn more about overtime pay from the Department of Labor.

If an employee works more than 40 hours in a workweek they must be paid 1.5 times their base rate for all hours worked beyond 40 hours. Public agencies are the only employers that can award compensatory time off in lieu of paying required overtime. The Massachusetts Minimum Fair Wage Law does not distinguish between full-time or part-time employment, and both types of employees are covered by the law.

Federal Overtime Rule (effective January 1,

You may contact the clerk of the bankruptcy court to file a preferred wage claim if there are concerns that sufficient funds will not be available to cover your wages as a creditor. Major stockholders, owners and officers of a bankrupt business may be personally liable. The Frequently Asked Questions (FAQs) provided below highlight topics and specific questions that are often asked of the Illinois Department of Labor (IDOL).

Normally, overtime pay earned in a particular workweek must be paid on the regular pay day for the pay period in which the wages were earned. However, an employee being paid on a salary basis is not automatically exempt from receiving overtime pay. The primary duties you perform must also be exempt to disqualify you from overtime pay. The 2021 legislative session included passage of ESSB 5172, a bill expanding the state Minimum Wage Act’s overtime protections to all agricultural workers, including agricultural piece-rate workers. Signed by Gov. Jay Inslee, this new law went into effect on July 25, 2021. While dairy workers are entitled to receive overtime pay for all hours worked over 40 in a workweek, the law establishes a gradual phase-in period for full overtime eligibility for all other agricultural workers.

Laws & Rules

For example, if payday is on the 15th and the workweek ends on the 17th, the amount of overtime will not be known for that workweek until the following payday. In other words, pay the overtime on the 30th — the regular payday for the period in which the workweek ends. Overtime is calculated based on the “workweek” which is a regularly occurring period of seven days. It could begin on any day or hour your employer chooses as long as it remains the same each week. The answer depends on the number of hours you worked during the workweek. If it’s more than 40 hours in the workweek, you should get overtime pay.