The Fair Labor Standards Act (FLSA) is a federal law that establishes overtime pay eligibility, alongside minimum wage, recordkeeping requirements, and child labor laws. Employers must follow the FLSA to determine whether employees are exempt from overtime. Overtime is time and a half pay for...
but on general job performance. Thus, a salaried employee may be expected to put in a minimum number of hours, but also be available if extra work is needed. In cases where the job salary remains the same no matter what hours are worked, the employer does not provide overtime pay, alth...
The Salary Basis Test for Overtime and Minimum Wage LawsAllen Vaught
Salary laws are generally cited as part of the Fair Labor Standards Act (FLSA). While most employment types in the United States are governed by the FLSA, some jobs are not. The FLSA was enacted to create two employee classifications to deal with minimum wage and overtime compensations, ...
In addition to complying with the FLSA salary thresholds for various federal overtime exemptions, employers must also be mindful of the different state salary thresholds for overtime exemptions under the state wage and hour laws. States often have their own wage and hour laws, which establish diff...
Additionally, ensure that the employee’s pay rate aligns with applicable minimum wage and overtime laws when transitioning between pay types. How does salary work? Salary pay works by providing employees with a fixed, regular income, regardless of the number of hours worked. Compensation is paid...
Yes, wages are protected by various labor laws, including minimum wage laws and overtime pay requirements. 1 Does a salary change based on hours worked? No, a salary is a fixed amount regardless of the actual hours worked, except in cases of deductions for unpaid leave. 1 Can wage rates...
In other words, a salaried employee with a relatively low annual salary must be given overtime compensation if the person’s hours worked are greater than 40 hours per week. You should be aware of the federal and state laws for your employees’ overtime compensation. Related Questions What ...
(or corresponding provisions of subsequent federal income tax laws) or any salary deferral agreement of the Employee under any non-qualified deferred compensation program that may be available to the Employee from time to time, and excludes (i) incentive or additional cash compensation; (ii) any...
overtime pay, although some employers do reward employees on salary with a bonus at some point during the year. However, the point is that most employees who have agreed to receiving pay for their services by way of a salary are not generally subject to overtime laws regarding employment ...