Wage and Hour Laws including Paid Sick Leave Department of Labor & Employment

03 Sep Wage and Hour Laws including Paid Sick Leave Department of Labor & Employment

The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime hours are worked on such days. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. There is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days. Unless specifically exempted, employees covered by the Act must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay.

She added that HR can ensure compliance by meeting the strictest AI standards, which will be in Colorado’s upcoming AI law. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here’s how employers and employees can successfully manage generative AI and other AI-powered systems. The raised salary-level thresholds may particularly burden small businesses, forcing some to choose between cutting jobs and raising prices, said Ted Hollis, an attorney with Quarles & Brady in Indianapolis. The final rule, which will affect millions of workers, is, as of 2025, an increase of nearly 65 percent. “It’s a very big jump,” said Natalie Bare, an attorney with Duane Morris in Philadelphia.

• Since this time, inflation has reduced the sufficiency of this threshold as prices and wages have risen over time.
• This fact sheet provides general information concerning the application of the overtime pay provisions of the FLSA .
• Where non-cash payments are made to employees in the form of goods or facilities, the reasonable cost to the employer or fair value of such goods or facilities must be included in the regular rate.
• Manual laborers and skilled tradespeople, including construction workers, electricians, plumbers, and mechanics, are non-exempt.
• The final rule raised the minimum salary level from $35,568 to $43,888 in July 2024.
• Unless specifically exempted, employees covered by the Act must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay.

Wage and Hour Laws (including Paid Sick Leave)

• States like California have specific protections, such as the one-day rest rule, which prohibits employers from requiring employees to work more than six consecutive days in a workweek.
• In addition to being paid on a salary basis and at an appropriate salary level, the employee must pass the job duties test, which considers factors such as certain types of required job duties and the employee’s level of authority in their position.
• While the Fair Labor Standards Act (FLSA) sets the baseline for overtime regulations across the United States, many states have implemented their own overtime laws that either expand upon or deviate significantly from these federal standards.
• OLYMPIA — Washington is now one of the first states to fully extend overtime pay to agricultural workers who work beyond 40 hours per week.
• Overtime Laws in the States – provides a clickable map that informs what the overtime laws are in each state.
• This applies unless the employer can demonstrate that the violation was made in good faith and based on reasonable grounds.

Regular audits of employee classifications can help prevent costly mistakes. Train both managers and employees to understand their responsibilities under overtime laws. Staying compliant with federal overtime law might feel overwhelming, but with the right approach, it’s manageable. Here’s how to ensure your business stays on the right side of the Fair Labor Standards Act (FLSA) while maintaining a positive work environment. The workers reportedly worked 12-hour shifts, 7 days a week, without overtime, despite being treated as employees in practice—controlled schedules, company policies, and integral roles in the business.

Federal Overtime Threshold

The first increase in July 2024 is expected to affect approximately 1 million workers, Looman said, while the second increase in January 2025 is expected to affect approximately 3 million workers. Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees. “Some businesses that cannot do either may be forced to close, resulting in unintended but predictable side effects of this government action,” he said. Find answers to questions on various labor topics by selecting a category below.

Key Provisions of the FLSA

Normally, overtime pay earned in a particular workweek must be paid on the regular pay day for the pay period in which the wages were earned. Employees are eligible for 1.5x their regular rate of pay for any hours worked over 40 in a seven-day workweek. However, some states, like California, require overtime pay for hours worked over 8 in a day. If an hourly employee earns above the salary threshold ($684 per week) and performs job duties that qualify them for an exemption (e.g., executive or administrative roles), they may not be entitled to overtime pay. Employers must carefully evaluate both the employee’s salary and duties to determine their overtime eligibility. The new rule from the Department of Labor raises the threshold used to determine if a salaried worker is exempt from overtime pay.

Penalties for Overtime Law Noncompliance

In cases where state laws differ from federal rules, employers must follow the law that provides the most favorable outcome for the employee (i.e., the law that provides higher overtime pay). For employees paid by the piece, their regular rate is calculated by dividing total weekly earnings by total hours worked. Overtime is then paid at half the regular rate for hours worked over 40, in addition to their full piecework earnings.

Daily overtime rules, such as paying extra for working more than 8 hours in a day, are not required under federal law but may be mandated by certain state laws, like in California. For federal compliance, the focus is on total hours exceeding 40 in a single workweek. Earnings may be determined on a piece-rate, salary, commission, or some other basis, but in all such cases the overtime pay due must be computed on the basis of the average hourly rate derived from such earnings. This is calculated by dividing the total pay for employment (except for the statutory exclusions noted above) in any workweek by the total number of hours actually worked. overtime pay u s. department of labor Only non-exempt employees are eligible for overtime pay under the Fair Labor Standards Act (FLSA).

If you have any questions about this new rule or other concerns regarding your business or employment matters, please contact one of our offices, and our experienced attorneys can help you. This Guide describes the major statutes and regulations administered by the U.S. The Guide is designed mainly for those needing “hands-on” information to develop wage, benefit, safety and health, and nondiscrimination policies for businesses. HR must always include human intelligence and oversight of AI in decision-making in hiring and firing, a legal expert said at SHRM24.

The Department of Labor (DOL) administers federal labor laws to guarantee workers’ rights to fair, safe, and healthy working conditions, including minimum hourly wage and overtime pay, protection against employment discrimination, and unemployment insurance. “For this reason, SHRM advocated for a more nuanced, geographically tailored approach to any increase in the EAP salary threshold. HB 1597 and SB 5487, if enacted, would allow employers to select a 12-week period each year during which agricultural employees can work up to 50 hours per week before overtime pay is required.

The secretary leads the Labor Department and its agencies, including the Bureau of Labor Statistics, the Occupational Safety and Health Administration (OSHA) and the Office of Workers’ Compensation Programs. The department also enforces more than 180 federal labor policies and laws such as those pertaining to hourly and overtime pay, unemployment insurance and workers’ rights to safe working environments. Your total annual income, not your hourly and overtime rates, determines how much tax you pay. But when rules change unexpectedly and state rules clash with federal provisions, keeping up with overtime laws can sometimes feel like work. Long-standing practices–like paying overtime only after 80 hours of work, which is prevalent in the construction industry–further complicate matters. This 2025 guide covers updated rules, eligibility, and how to calculate overtime pay accurately.