Overtime is Calculated by the Week, not Every Two Weeks

I have heard this question asked countless times over the years:

“Why does your time tracking system only calculate overtime by 40 hours and not by 80 hours?”

The answer is, because that is the only way over time is calculated in 99% of cases.

It is our job here to understand how overtime works, since we are the ones programming the rules into the system. But you don’t have to take it from us, take it straight from the FLSA:

“Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. ”

Exactly what the FLSA means by exempt can be found here. In general, full and part time hourly employees are not exempt. If you are not sure if your employee qualifies for overtime exemptions, check with the FLSA to be sure.


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