Payroll

What is FLSA Overtime?

The Fair Labor Standards Act (FLSA) requires covered employers to pay non-exempt employees at least one and one-half times their regular rate of pay for hours worked in excess of 40 in a workweek.

Calculating FLSA Overtime

  • 1Track total hours worked in a fixed 7-day workweek.
  • 2Identify any hours exceeding 40.
  • 3Apply a 1.5x multiplier to the regular hourly rate for those excess hours.

Legal Requirements for Overtime

Failure to pay correct overtime is a common source of wage and hour lawsuits. Employers must accurately track time to ensure compliance with federal and state labor laws.

Automating Overtime with ClockIt

ClockIt automatically calculates overtime based on customizable rules, ensuring FLSA compliance without manual spreadsheet calculations.

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Frequently Asked Questions

Who is exempt from FLSA overtime?
Certain administrative, professional, and executive employees paid on a salary basis are exempt from overtime requirements.
Can I offer comp time instead of overtime?
Generally, private employers cannot offer comp time in lieu of overtime pay for non-exempt employees under the FLSA.

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