The Biden overtime rule was struck down Now, some workers are losing pay raises

Overtime pay rate varies in different companies and is determined by various factors besides hours worked. Finalized in April, the rule would have made some 4.3 million salaried workers nationwide newly eligible to earn 1.5 times their regular pay when they work more than 40 hours a week. Start with the employee’s regular hourly pay rate, which is the amount of money they are paid per regular hour worked. In the US, the minimum amount this rate can be is $7.25 per how much is overtime pay hour, but this varies from state to state and may need to be higher depending on where you live.

How to Calculate Double Time

Blue collar workers, as well as first responders, cannot be exempt from overtime requirements. The labor market is currently going through a period of change that impacts all its members, including employees, employers, and independent contractors. Work done on Saturdays, Sundays, holidays, and regular days of rest is not considered overtime unless the organization clearly states that in the employment contract. It is important to know what’s considered overtime hours at your workplace so that you can manage your expectations.

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• These employees typically perform office duties related to management, and are often exempt from overtime rules.
• You can find the full list of exempt duties on the Department of Labor’s website.
• If your company has a unionized workforce, double time pay provisions might already be outlined in your collective bargaining agreement.
• According to the Fair Labor Standards Act (FLSA), anyone who works beyond the standard 40-hour workweek is eligible for overtime pay.
• Investigators recommend changes to ensure such violations don’t happen again.
• These resources will clearly outline the circumstances under which the double hourly rate applies.

Unlike standard overtime, which provides a decent bump in pay (usually 1.5 times the regular rate), double time pay truly stands out. You must pay at least the minimum for overtime, but you may decide to pay employees at a higher rate, and for overtime starting at lower hours per week. Some employers, for example, pay “double time” (twice the normal hourly rate) for holidays. The Department of Labor does not require employers to pay overtime for night, holiday, or weekend work; these rates are determined by the employer or by union contracts. While not mandated by federal law, some states and individual companies offer double overtime pay.

• Knowing your rights empowers you to advocate for fair compensation and ensures that you are treated equitably in your workplace.
• Unlike standard overtime, which provides a decent bump in pay (usually 1.5 times the regular rate), double time pay truly stands out.
• For example, California mandates double overtime pay for hours exceeding 12 in a workday.
• Aditi Malhotra is a Senior Marketing Communications Specialist and a tech enthusiast with a keen interest in the SaaS industry.
• Under FLSA, manipulating hours to avoid paying for overtime is illegal.

What is overtime pay?

In rare cases, companies might undertake projects with extreme physical demands or safety risks. To compensate for the heightened danger or physical toll, they might offer triple time pay to entice employees to take on these challenging tasks. These employees hold supervisory roles and often have a set salary regardless of hours worked. Overtime Laws in Accounting for Churches the States – provides a clickable map that informs what the overtime laws are in each state.

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Additionally, the timesheets or other documents that show how the wages were calculated have to be saved for at least two years. Some online bookkeeping states have their own payroll recordkeeping requirements, which may span longer time periods than those required by the FLSA. Consider, for example, a nonexempt employee who works eight hours on Monday, Tuesday and Wednesday, 10 hours on Thursday, and six hours on Friday.