Labor Law and Overtime

According to the United States Department of Labor, the FLSA, or Fair Labor Standards Act, is in charge of regulating overtime rates and pay. It is part of the labor laws in affect in this country for employers and their employees.

Premium Pay

Premium pay is the pay given for employees that work overtime. Overtime is the amount of hours over full time (40 hours a week) worked in a given week. This is stated in the FLSA as being, at minimum, one-and-one-half times the regular hourly rate of pay. Employers are required to pay this wage.

Weekend Pay

This overtime pay is not required on weekends unless the weekend hours will put the person in excess of 40 hours of hourly pay. It is then calculated at the above "premium rate."

Bonus Pay

With just a few exceptions, bonus payments are required by the FLSA to be included when factoring the rate of pay for overtime. At time-and-a-half, the standard hourly rate plus any bonus payments are added together and then divided by 40 hours to get the overtime rate of pay.

Night Pay

Premium rates for night work is not mandated under the Fair Labor Standards Act. If an employer wants to add a premium to hours worked at night, he/she may, but is not required. This will be negotiated out in contracts or by employer and employee conversations.

Double Time

Double time rates of pay are an incentive but are not required for any job or special exception by the FLSA. It is something that can be negotiated by employer/employee or employer/employee representative.