Glossary > Employment Law > Wage And Hour Laws > General

Overtime Pay

Overtime pay is extra compensation provided to employees for working more than a certain number of hours in a workweek. Under employment law, this additional pay rate is typically set at one and a half times the regular hourly rate of pay.

Example #1

For example, if an employee's regular wage is $15 per hour, they would receive $22.50 per hour for each hour worked beyond the standard 40 hours in a week.

Example #2

Another example could be a nurse who works longer shifts during a busy week at the hospital and is entitled to overtime pay for those extra hours worked.

Misuse

Misuse of overtime pay occurs when employers either refuse to pay employees the correct overtime rate or misclassify employees as exempt from overtime requirements when they should be eligible. This is important to protect against as it unfairly impacts employees' compensation and violates their rights under labor laws.

Benefits

One benefit of overtime pay is that it serves as an incentive for employers to manage work hours effectively and prioritize employee well-being. By compensating employees at a higher rate for overtime work, employers encourage reasonable work hours and help prevent employee burnout.

Conclusion

Ensuring that employees receive fair overtime pay is crucial for upholding workers' rights and promoting a balanced work-life dynamic. By abiding by overtime pay regulations, businesses demonstrate a commitment to fair labor practices and maintain a positive relationship with their workforce.