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Overtime

What is Overtime?

Overtime is described as hours served in excess of 40 in a workweek that is paid at a higher rate than the normal rate (usually the statutory overtime rate of 1.5 x regular rate).

Overtime for Exempt versus Non exempt Employees

Employees that fulfill specific criteria are deemed exempt, this implies that they are not governed by the Fair Labor Standards Act (FLSA). In standard conditions, all workers should be compensated at least the federal minimum wage rule, and all working hours above 40 in one week should be compensated at least one and a half times their basic pay per hour.

An exempted employee will be given a fixed wage if he is exempted.
Although it's uncommon for an exempted employee to receive less than a non exempt employee. A worker may be found excluded in a variety of forms.

Employees who work for a company, are exempted from the Fair Labor Standards Act (FLSA), but independent contractors and volunteers do not fall under this category. Multiple countries have wage standards and rules that companies are bound to follow.

The difference between Exempt and Nonexempt employees is that exempt employees are not to be paid the overtime. Exempt employees are also not eligible for minimum wage law. The difference is in the roles, responsibilities, and industries they work in.

The minimum pay a year is 23,600 dollars, if they are paid less than this they are non exempt.

A salaried employee is an exempt employee.

The job duties outlined by fair labor law, executive, professional and administrative duties, are considered exempt employees.

Related: Exempt vs Nonexempt