It's a scenario that many of us have lived out at one time or another - your spouse fails to pull in enough income by streetwalking on the east side of town, so you are forced to get off the couch and get a job yourself.
Unfortunately, you are forced to take a minimum-wage job in a grimy sweatshop working 18-hour days, 7 days a week. At night your friend from college calls you to complain that while he only has to work a 40-hour week over 5 days, his six-figure salary and 401k plan is hardly enough compensation for what he is contributing to the company in a "vital managerial position".
You laugh with a mixture of pity and derision as you taunt your friend by informing him that, unlike him, you are eligible for overtime pay.
Overtime pay means that your boss is required to pay you more than your hourly wage if you work more than a certain amount of hours during the week.
Federal law requires overtime pay for certain eligible employees. Additionally, many states have their own overtime laws. Employers are required to pay whatever the higher rate is between federal and state laws.
Who is eligible for overtime pay?
Not every worker is entitled to overtime pay. There are a few select professions that are not required to pay overtime. Generally speaking, however, most hourly employees who are not either independent contractors or professionals requiring advanced degrees are covered by overtime laws.
Overtime laws usually do not cover executives who supervise the work of others. Nor do they cover certain administrative employees who do "non-manual" work related to either management policies or general operations of the business. Such "executive" or "administrative" employees must also be paid a set minimum weekly salary in order to be exempt from overtime requirements (versus employees that are paid by the hour).
How much overtime pay are those eligible entitled to?
If you fall into the category of an employee who is entitled to overtime, federal law requires that you get paid 50% more than your regular hourly wage for each hour worked over 40 hours in a given workweek. It does not matter how many hours are broken up over the course of the week, as long as the 40-hour threshold is calculated over a set 7-day schedule. (i.e., An employer can not calculate an "average" 40-hour workweek over the course of two weeks.)
For instance, let's say that your boss forces you to work every day in the sweatshop for 6 hours each day with no break, except on Sundays, when you only work 4 hours. That adds up to a 40-hour workweek. Hence, no overtime pay under federal law.
On the other hand, let's say your friend is an hourly employee who is forced by his boss to judge an entire 48-hour weekend marathon wet T-Shirt contest and is then given the next 5 days off in order to hang out with the contestants. Your friend would be entitled to 8 hours of overtime pay under federal law.
States can have higher overtime provisions
Under federal law, there are no requirements for "double time" hours or higher weekend rates.
However, states are free to craft overtime laws that have separate provisions as long as they meet the federal minimum requirements. For instance, some states, like California, compute overtime pay based on a daily standard of 8 hours. That means that you would get overtime pay each time you work more than 8 hours in a given day - even if you end up working less than 40 hours for the overall week.
In addition to the "8-hour workday" rule in California, that state also provides overtime for any hours worked over 40 hours in a set workweek (similar to federal law), as well as any hours worked on the seventh straight day of work in the same workweek.
California employees are also entitled to "double time" (100% more than your hourly wage) for any hours worked beyond 12 hours in a single workday, or beyond 8 hours on the seventh straight day of work in a set work week.
What to do if "The Man" doesn't pay required overtime
An employee who is entitled to overtime pay but does not receive it may file suit against his employer to recover any unpaid back wages. Knowing and willful violations of overtime statues can carry both criminal and civil penalties.
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[Note: This article is to be used as an educational guide only and should not be interpreted as a legal consultation. Readers of this article are advised to seek an attorney if a legal consultation is needed. Laws may vary by state and are subject to change, thus the accuracy of this information can not be guaranteed. Readers act on this information solely at their own risk. Neither the author, handelonthelaw.com, or any of its affiliates shall have any liability stemming from this article.]
