The Fair Labor Standards Act (FLSA) is a federal law put in place in 1939 to protect the rights and well-being of American workers. While the act has changed since its inception 80 years ago, it still retains many of its original goals, such as the minimum wage, overtime pay requirements, record keeping, and child labor standards. The FLSA is an important part of the American workforce and protects the rights of most workers.
Are Employers Required to Pay Overtime?
According to the FLSA, if an employer permits or requires an employee to work overtime, that employer must pay the employee for those overtime hours. Overtime is defined as any hours worked after 40 hours in a single workweek. The FLSA also requires overtime pay be no less than the employee’s usual rate plus half.
For example, a retail worker normally makes $12 per hour. This week, they worked a total of 48 hours, meaning they have eight hours of overtime they must be compensated for. Their overtime rate would be $12 + $6, for a grand total of $18 for every hour worked over 40 hours in a week. This means the worker should receive a paycheck of $720, $576 for the first 40 hours worked, and $144 for the eight hours of overtime....