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Types of Workers Entitled to Overtime Pay
Under the Fair Labor Standards Act (FLSA), most workers are entitled to overtime pay if they work more than the standard (40 hour) workweek. This is slightly different from some equivalent state laws. In many states, the standard work week is still 40 hours (5 workdays per week, 8 hours per day), but overtime can kick in sooner: when the employee works more than 8 hours in a 24-hour period. This means that a person could work less that 40 hours per week, but still be entitled to overtime if they work more than 8 hours on a given day. In either case, overtime pay is usually a minimum of 150% (“time and a half”) of the employee’s regular hourly wage.
If state and federal law conflict on this matter, the law which provides greater protection (usually a state law) controls. Under federal law, and the law of most states, certain types of employees are exempt from this requirement.
Generally, “white collar” workers who are salaried, rather than paid by the hour, are exempt from these requirements. This includes most professionals (doctors, lawyers, and business executives, etc.), and administrative workers. It also applies to outside sales workers, and to highly-paid (more than $100,000 per year) workers whose job does not include manual labor.
For these exceptions to apply, the worker must earn at least $455 per week, and his salary, when divided by actual hours worked, must exceed the minimum wage. “Computer workers” are also exempt. This does not mean that any person who spends most of their work day in front a computer is considered a “computer worker”. It applies to systems analysts, programmers, and the like.
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