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Overtime Requirements

April 13, 2006

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In addition to the minimum wage requirements of federal wage and hour laws, there is an overtime pay requirement that mandates that employers pay nonexempt employees one and one-half times their regular rate for any hours worked in excess of 40 hours in a workweek.

In complying with the overtime requirements of the FLSA, be sure that you:

• determine who's subject to overtime rules
• understand what constitutes a workweek
• compute each worker's regular rate
• comply with state laws on overtime pay
• can't pay overtime wages other than time and one-half (there is a small group of businesses that can use other methods)

We provide an overtime policy guidance document among the Business Tools, which may help you to avoid the pitfalls of overtime.

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