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Overtime pay: How to ensure wage and hour compliance

By Gabriele Kaier, 18.05.2017, Approx. 3 min reading time.

Are your employees classified at the right rates? Are certain employees exempt from overtime? Are the hours being tracked and accounted for correctly? When it comes to overtime pay, there is a variety of regulations that your company has to comply with in order to avoid costly wage and hour disputes. Learn in this article how to avoid getting on the wrong side of the Labor Department.

When it comes to overtime pay, there is a variety of regulations that your company has to comply with in order to avoid costly wage and hour disputes. These are mostly employment law disputes which involve the amount of wages an employee is paid or the amount of hours he has worked. And in some cases disputes can involve a class action lawsuit.

To get a better picture, the Wage and Hour Division (WHD) published the following statistics on enforcement for 2016:

  • Back Wages: $266,566,178
  • Employees Receiving Back Wages: 283,677
  • Complaints Registered: 20,522
  • Enforcement Hours: 1,112,939
  • Average Days to Resolve Complaint: 121
  • Concluded Cases: 28,589

Following important questions have to be answered in the context of overtime pay:

  • Are your employees classified at the right rates?
  • How many hours has the employee worked?
  • Is the person entitled to overtime pay?
  • Are certain employees exempt from overtime?
  • Are the hours being tracked and accounted for correctly?

The Fair Labor Standards Act (FLSA) issued by the United States` Department of Labor requires overtime pay for hours worked in excess of 40 hours in a workweek. Working on weekends or nights is a matter of agreement between the employer and the employee. The FLSA does not require extra pay for weekend or night work.

How to avoid getting on the wrong side of the Labor Department?

Assess your situation, find out if your existing time tracking system sets rules which ensure that each worker is classified correctly and overtime is accounted for accurately.

A helpful time and attendance system lets you easily:

  • Apply federal and company´s policies to ensure each worker’s overtime is accounted for correctly
  • View employee hours in real-time
  • Generate reports per employee
  • Integrate the time and attendance data into payroll and other systems

TimeTac´s Employee Time Tracking Software includes all of the above criteria and makes it easy for you to comply automatically with the current overtime pay requirements.

Check out which other extremely useful features the right time and attendance software can offer and how such a system can help you track employee time and attendance based on your industry and business demands.

About TimeTac

TimeTac GmbH develops and distributes web-based and mobile time tracking systems. The scope of our products includes market-tested and optimally customisable solutions for employee time tracking, project time tracking, leave management and shift planning. Contact us to learn more about TimeTac products.

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