Employee Overtime Laws

MaintainEmployee Overtime Laws

You must pay your employees overtime under certain conditions and be careful to not violate overtime laws with salaried employees. As a business owner, you should understand the US Department of Labor overtime laws.

Common mistakes business owners make with overtime laws:

  • Paying employees a low salary where the employees work more than 40 hours per week.
  • Determining overtime hours based on a two week pay period.
  • Not paying overtime and “comping” employees with extra time off
  • Hiring an employee under an hourly wage agreement then not tracking or compensating the employee for overtime
  • Pay employees for piece work and ignore overtime laws
  • Pay employees at different rates and pay overtime using the lowest rate
  • Fail to pay tipped employees overtime

Here is the US Department of Labor’s web page on overtime laws.  It’s imperative you read all information on this page and read and follow all links.

Here is a video by the US Department of Labor on overtime laws.