Overtime: 4 Misconceptions everyone Has
Overtime is a touchy subject for most employers. Not only does it cause them to pay out more on the payroll each week, but it also means that the workers aren’t being as productive as they could be. Another issue that overtime causes is issues with an employee’s hours worked. Since there are certain laws and rules in place to govern this, employers must be careful about how they handle overtime pay.
Over the years, there have been many myths and misconceptions develop about overtime. Unfortunately, many of these items can actually be pretty harmful to employers if they follow them. Here are 4 of the top beliefs about overtime that are actually incorrect.
Overtime Must be Approved
Many employers believe…
The first way is to have a strong policy in place requiring all overtime to be authorized in advance. While you cannot refuse payment for overtime if they don’t follow the rules, you can discipline them by writing them up, putting them on probation or even letting them go. But, before you resort to these measure, make sure the discipline is warranted. There are times when the employee may simply not have enough time in their day to finish all the work you are requiring them to accomplish.
Comp time is Allowed
Some employers are allowed to offer comp time in place of overtime pay. This occurs when an employee works overtime, but the employer offers paid time off instead of paying the overtime. In some situations, this is allowed.
However, comp time is only available to public sector employees. Employers are allowed to give their employees paid time off instead of paying overtime. However, this is not something that is allowed in the private sector. Overtime must be paid to employees in this sector when it is worked.
Average time is…
Any amount of time that is worked past 40 hours will be required to be claimed as overtime. It is not allowed to move these additional hours to the next week in order to avoid paying overtime. Each week is a stand-alone segment of time in the eyes of the FLSA.
Salaried Employees Don’t Receive Overtime
One way many employers avoid paying overtime is by making employees exempt or salaried employees. In many instances, this is actually a way to keep from paying overtime, but it is not a catch-all. There are very specific guidelines that employers must follow when it comes to determining exempt employees and not all positions are allowed to be designated as such.
The first thing you must consider when determining if an employee is exempt is to take a look at the duties they perform. Some examples may be employees that supervise more than one employee and that have the ability to hire, fire or make job recommendations. Employees in certain professional fields are also available to be exempt, along with employees that fit into certain other…
