Every organization whether it’s big and small, knows in advance that every issue related payroll creates lots of misunderstanding regarding the paycheck an employee is going to get . Making this headache more intense, there are large numbers of employees who are unaware of the official rules and regulations which provide details about overtime pay and people who are exempt from overtime.
The Fair Labor Standards Act has define criterion for minimum wage, record maintenance, child labor standards, factors which can affect full time and part time workers of private, federal, state or local government sector. As per this act, nonexempt worker have rights to receive minimum wage and overtime pay at a rate of one and one half times the regular rate. An employer has to pay this to the employees working more than 40 hours per week.
There are some fields in which FLSA not interfere such as Vacations, Sick leaves and Holidays. These are entirely depends on agreement held between employee and employer. In addition to this FLSA also not decide breaks or meal break between working hours. It changes as per the organizations and state.
Fair Labor Standards Act is concern about overtime wage. All non exempt workers must receive overtime pay once they complete 40 hours of work in a work week. Some exceptions to this 40 hours period are not applicable on Police officers, firefighters or people working in hospitals under special circumstances.
There are some employees who are not entitle to get overtime wage such as-
Executives- executive is exempt from overtime. 50 percent of his/her time is invested in managing the company or department. Some times or on regular basis, he has to direct the work of two of more employees.
Professional- A professional performs task which requires advanced knowledge and creativity. He basically works on exercises on activities and judgment.
Administrative- Primarily responsible for performing office or non manual task directly related to management policies or operations of business. Administrative are handle regular exercises and judgment activities.
Outside salesperson- employee who sells product or service offsite are exempt from overtime.
Apart from these employees, all are allowed to get overtime wages for the hours they have contributed more than regular hours.