Ohio Overtime Pay Rules 2025

An employee earns a $1,000 weekly salary plus $500 in commissions and works 50 hours. An employee earns $12/hour, works 50 hours, and receives a $100 non-discretionary production bonus for that week. Because all three tests—Salary Level, Salary Basis, and Duties—must be continuously met, a failure in any one area can jeopardize the exemption for that workweek. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present. But staying compliant isn’t always easy — especially in industries where long hours, low wages, and high turnover are common. In fact, Department of Labor data shows that certain sectors consistently lead in overtime violations and back wages owed.

Overtime Exemptions in North Carolina

The regular rate is essentially your average hourly earnings for the workweek. It’s calculated by dividing your total compensation for the workweek (with some specific exceptions allowed by the FLSA) by the total number of hours you actually worked during that week. If your job doesn’t satisfy these categories, you should likely be classified as non-exempt and receive overtime pay. Simply having a managerial title doesn’t automatically exempt you – what matters is your primary duty and level of authority. The FLSA, with some exceptions, requires bonus payments to be included as part of an employee’s regular rate of pay in computing overtime. Extra pay for working weekends or nights is a matter of agreement between the employer and the employee (or the employee’s representative).

Outside Sales Overtime Exemptions

• To prevent this, businesses should conduct regular audits of job classifications and consult legal experts when necessary.
• Multiply this rate by the number of overtime hours worked to determine your total overtime pay.
• Nonexempt employees are also entitled to double their regular pay rate for all hours worked in excess of 12 hours in any workday and for all hours worked in excess of eight on the seventh consecutive day of work in a workweek.
• Out of an estimated 120 million workers in America, almost 50 million are exempt from overtime law.
• While the FLSA sets a national baseline—time-and-a-half for hours worked over 40 in a workweek—many states and cities go further with stricter rules.
• This article breaks down what every U.S. worker should know about overtime pay, including eligibility, how it is calculated, and recent legal updates.
• This right is protected by the Fair Labor Standards Act (FLSA), which mandates that employers adhere to these overtime pay requirements.

If your job fits into one of the four main exemption categories to overtime law (executive, administrative, professional, and outside sales), then you are not how much is overtime protected by North Carolina and federal overtime regulations. Most hourly employees in North Carolina are entitled to a special overtime pay rate for any hours worked over a total of 40 in a single work week (defined as any seven consecutive work days by the Fair Labor Standards Act). Overtime is calculated based on hours actually worked, and in this scenario you worked only 35 hours during the workweek.

Overtime rules by state vs. federal overtime law

So if an employee makes $20 per hour, their overtime rate would be $30 (1.5 times their regular rate of pay). According to the US Department of Labor, federal laws on overtime pay are determined by the Fair Labor Standards Act (FLSA). The FLSA states that all non-exempt employees are entitled to overtime pay for working over 40 hours in a workweek. If an employee has exempt status, such as a salaried employee, you are not required to provide overtime.

This federal law sets the standard for overtime pay, and state laws, including those in Texas, must adhere to it. Employers are prohibited from asking or requiring employees to waive their right to overtime pay, as it is a fundamental labor protection aimed Certified Public Accountant at ensuring fair compensation for employees working beyond regular hours. Any such waivers would likely be considered null and void, and employers could face legal consequences for attempting to circumvent overtime pay rules.

• Like Kansas, Minnesota businesses covered by FLSA must follow the federal law.
• The regular rate itself still changes each week based on the total hours worked (Salary / Total Hours).
• An employee works 10 hours at $10/hour and 40 hours at $20/hour in the same week (50 total hours).
• California is the primary state with specific double overtime rules, but other states, like Alaska and Nevada, have daily overtime regulations.
• In cases where an employee is subject to both the state and federal overtime laws, the employee is entitled to overtime according to the higher standard (i.e., the standard that will provide the higher overtime pay).
• Navigating wage and hour laws is a critical responsibility for every employer in the United States.
• Most hourly employees in New York are entitled to a special overtime pay rate for any hours worked over a total of 40 in a single work week (defined as any seven consecutive work days by the Fair Labor Standards Act).

The Standard Overtime Rate

It need not coincide with the calendar week but may begin on any day and at any hour of the day. Different workweeks may be established for different employees or groups of employees. Normally, overtime How to Run Payroll for Restaurants pay earned in a particular workweek must be paid on the regular payday for the pay period in which the wages were earned. If your job fits into one of the four main exemption categories to overtime law (executive, administrative, professional, and outside sales), then you are not protected by Michigan and federal overtime regulations. Most hourly employees in Michigan are entitled to a special overtime pay rate for any hours worked over a total of 40 in a single work week (defined as any seven consecutive work days by the Fair Labor Standards Act).