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Glossary > Employment Law > Wage And Hour Laws > Payroll Practices
Legal Disclaimers

Overtime Pay

Overtime pay is extra compensation provided to employees for working more than the standard hours set by federal or state laws. Typically, employees receive one and a half times their regular hourly rate for each hour worked over the set threshold.

Example #1

An employee usually works 40 hours in a week. If they work an additional 10 hours, those extra 10 hours qualify as overtime, and they should be paid at one and a half times their regular hourly wage for each of those extra hours.

Misuse

Misuse of overtime pay can occur when employers fail to pay employees the correct overtime rate for additional hours worked. This can result in employees being deprived of fair compensation for their extra effort and time, violating their rights under employment laws.

Benefits

Overtime pay ensures that employees are properly compensated for any additional time they dedicate to their work beyond the standard hours, incentivizing fair treatment and promoting work-life balance.

Conclusion

Protecting the right to overtime pay ensures that employees are fairly compensated for their extra efforts, promoting equity and respect in the workplace. It is essential to prevent misuse and uphold the principles of fair compensation and labor rights.

Related Terms

Fair Labor Standards Act (FLSA)Employee Benefits

See Also

Compensatory TimeExempt EmployeeNon-Exempt EmployeeTipped WagesUnemployment InsuranceWalsh-Healey Public Contracts ActWorker's Compensation

Last Modified: 4/30/2024
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