Overtime Threshold

The Overtime Threshold is the point at which an employee becomes eligible to receive overtime pay for working more than a certain number of hours in a workweek, typically set at 40 hours.

Example #1

For example, if an employee's regular workweek is 40 hours, any additional hours worked beyond that would be considered overtime.

Example #2

If an employee works 45 hours in a workweek, the extra 5 hours would qualify for overtime pay.

Misuse

Misuse of the overtime threshold can occur when employers misclassify employees as exempt from overtime pay when they should be non-exempt. This misclassification deprives employees of rightful overtime compensation and violates wage and hour laws.

Benefits

Setting an overtime threshold ensures that employees are fairly compensated for working additional hours beyond the standard workweek. This practice helps protect employees from exploitation and upholds their rights to fair compensation for their labor.

Conclusion

Understanding and enforcing the overtime threshold is crucial to ensure that employees are compensated fairly for their work and to prevent any instances of wage theft or labor law violations.

Related Terms

Overtime PayNon-Exempt EmployeeFair Labor Standards Act (FLSA)