Overtime: Know What to Expect and When to Expect It

Under federal law, overtime compensation is paid at one and a half times an employee’s regular hourly rate.  This means that an employee who normally earns $10.00 per hour must be paid $15.00 per hour when they work overtime (i.e., more than 40 hours in a work week).  Problems can arise, however, when employees work through lunch breaks and do not count that as time worked.  Employees often consider such breaks to be “down” or “personal” time, even though they continue to sit at their desk, answer phones and perform other work.  Unless the employee has been completely relieved of work, eating a sandwich has no bearing on whether or not they should be paid.  An employee who works through lunch should count that as time worked and it must be paid by the employer.  Unfortunately, many employers require workers to record on their timesheets that they have taken a lunch break.  When they do, they are often being denied overtime compensation.

In addition to misconceptions about lunch breaks, employees often believe there are limits on the amount of overtime they may be required to work each week, or that they are entitled to “double time” for doing so.  However, under federal law, there is no limit on the number of hours that employees aged 16 and older may work each week and there is no double time or other increase in the rate of overtime simply because an employee works 50 or even 60 hours a week.  In addition, employees are not entitled to overtime compensation because they work on a Saturday, Sunday, holidays or other rest days (unless, of course, overtime is worked).  Employees must therefore remain vigilant about their entitlement to overtime compensation and, if they are unsure of their rights, consult the attorneys at Klafter Olsen & Lesser for a free, no-obligation consultation.

Overtime compensation may be a significant piece of an employee’s compensation package.  Knowing what to expect and when to expect it will help ensure that your rights are protected.