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Who qualifies for overtime pay?

On Behalf of | Sep 3, 2023 | Employment Law For Employees |

When it comes to earning a fair wage for the work you put in, it is important to understand the intricacies of overtime pay.

Overtime pay is additional compensation given to eligible employees who work more than a certain number of hours in a week. You must know who qualifies for overtime pay to ensure you receive the correct wages.

Weekly hours threshold

The first factor to consider is how many hours you work in a given week, as the threshold for overtime pay is often set at 40 hours per week. If an employee’s total work hours exceed 40 hours, the employee should receive overtime pay for them.

Eligible job positions

Not all job positions qualify for overtime pay. Generally, overtime pay applies to non-exempt employees, meaning workers who are paid by the hour and do not hold administrative, executive or professional positions. In contrast, exempt employees, such as managers or salaried professionals, do not receive overtime pay.

Hourly rate matters

When compared to the standard hourly wage, overtime pay rates are higher. According to USA.gov, the overtime rate is 1.5 times the regular hourly rate. For instance, if an employee’s regular hourly wage is $10, their overtime pay rate would be $15 per hour. This increased rate provides extra compensation for the additional effort put in beyond the regular work hours.

Part-time employees and overtime

The total hours worked determines overtime pay, not just by the label of full-time or part-time employment. Part-time employees can also be eligible for overtime pay, provided they work more than the designated threshold of hours in a week.

Understanding who qualifies for overtime pay ensures that employees are fairly compensated. If you are unsure about your eligibility for overtime pay, it is a good idea to refer to your company’s policies or consult the relevant labor regulations to make sure you are getting the compensation you deserve.