Overtime

What is Overtime?

Extra compensation for hours worked over the typical 40-hour workweek is called overtime (i.e., seven consecutive 24-hour periods). As of a final decision made by the US in September 2019, According to the Department of Labor, nonexempt workers who make less than $35,568 annually are entitled to overtime pay.

Why Overtime Matters

Instead of counting the total number of hours worked throughout a workweek, several jurisdictions mandate that overtime be paid whenever employees work more than 8 hours in a single 24-hour period. The required overtime compensation rate is the same regardless of how it is calculated: It must be at least time and a half or an additional 50% of the employee’s regular daily or hourly rate. The employee receives payment for all overtime hours worked during a certain workweek on their normal payday for that pay period.