Labor laws exist to protect your workers from unfair employment practices concerning wages, time off, and other work-related matters on both the federal and state level. The Fair Labor Standard Act mandates that any employees working approved overtime must receive overtime pay. In general, overtime pay comes into play for any hours worked past 40 hours at the rate of one and a half times their original rate. The employer is at liberty to pay more, but that’s up to their discretion. However, there are certain cases where employees are exempted from the overtime labor law, eliminating the need to pay the individual any overtime.
In this article, we’ll talk about the overtime labor law, how to implement it into your small business, and how you can determine who is qualified for overtime pay.