The New Fair Labor Standards Act and Overtime Interim Rules

As the year kicks off, many heure supplémentaire interim are experiencing an influx of work that requires extra help. While overtime is a great tool to keep operations running smoothly, it’s important to strike a balance between meeting project needs and burning out your team. It’s also essential to understand the new overtime rules and how they affect both employers and employees.

Under the Fair Labor Standards Act, overtime is paid at one-and-a-half times the employee’s regular rate of pay for time worked over 40 hours in a week. It’s important to remember that the law only applies to non-exempt employees. Non-exempt employees include both hourly and salaried workers, including managers. In addition to the basic wage, some employees may earn a piece-rate bonus, commission, or other discretionary bonuses, which must be included when calculating overtime. In most cases, overtime is calculated on a weighted average of all earnings, including the non-discretionary bonus.

Making the Most of Time: Exploring Overtime Interim Solutions

To ensure compliance, managers should always carefully review overtime calculations to make sure they are in line with federal and state laws. Overtime is only owed for actual hours worked, so it’s important to not include scheduled or prescheduled time in overtime calculations. Also, supervisors should never pressure employees to report less than the number of hours they actually worked in order to avoid paying overtime.

Employers can minimize overtime costs by adjusting work schedules, changing processes, and cross-training employees when possible to reduce the need for overtime. They should also be thoughtful when budgeting for overtime in grant proposals. And most importantly, they should communicate with teams to make sure everyone is aware of expected overtime requirements and expectations.