The Fair Labor Standards Act (FLSA) – Overtime Computation

FLSA – Overtime Computation

Overtime is required at a rate of 1.5 times the normal pay rate for all hours worked over 40 in a single workweek. An employer may designate that their workweek begins at a given day and hour and continues until that same day and hour 7 days later. Once selected, that same workweek definition must be maintained consistently until there is a legitimate business reason for making a change. That change must be clearly communicated in advance to all employees who will be affected by the change. No payment may be forfeited because the employer changes its workweek definition. Compensating time off is permitted under the FLSA if it is given at the same rates required for overtime pay.