What is meant by "overtime" pay?
32,020, What is meant by "overtime" pay?

As the term is most often used, "overtime" means extra hours paid at a higher rate than the regular hourly rate. Extra hours paid at the regular hourly rate are generally not considered to be overtime.


Must an employer pay overtime if an employee is asked to work more hours than the statutory requirement? Yes, if the employer is covered by the federal (or a state) overtime law, and if the employee works in a job classified as nonexempt --not exempt from the law's overtime requirements.


While the law may require overtime pay --currently one and one-half times the regular hourly rate for each hour worked within a single week that is beyond the normal workweek for that industry, there is a social issue, as well. Employers that are not legally required to pay overtime may encounter pressure from employees if they don't voluntarily pay at least time and a half for extra hours worked. Overtime is, therefore, usually required by law and may be obligatory even when it is not required.


What about "daily" overtime? Daily overtime pay is not generally required by law nor is it as firmly built into the workplace ethic as weekly overtime. If an employee works 10 hours Monday, but works two hours less Thursday, most employers and employees would not expect the employee to receive overtime pay for the two hours added to the normal day Monday.


Some companies, however, do pay an overtime rate for extra hours worked in a single day, regardless of how the week's total comes out. Daily overtime pay may be required on government contracts or under some state laws.


Reprinted with permission. © CCH

<p> 32,020, What is meant by &quot;overtime&quot; pay? As the term is most often used, &quot;overtime&quot; means extra hours paid at a higher rate than the regular hourly rate. Extra hours paid at the regular hourly rate are generally not considered to be overtime. Must an employer pay overtime if an employee is asked to work</p>

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