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So, in order to calculate the amount of money a non-exempt employee should receive, an employer must determine the number of hours of work or "compensable time." Compensable time or working time is defined as any time the employer permits or allows an employee to perform the activity.
Compensation is the combination of salaries, wages and benefits that employees receive in exchange for them doing a particular job. It can include an annual salary or hourly wages combined with bonus payments, benefits, and incentives.
Under the FLSA, overtime pay is determined by multiplying the employee's straight time rate of pay by all overtime hours worked PLUS one-half of the employee's hourly regular rate of pay times all overtime hours worked. All overtime work that is ordered or approved must be compensated.
3 hours is the minimum for most states across the country.
The Fair Labor Standards Act (FLSA) regulates what constitutes compensable time or hours worked. Under the FLSA, compensable time includes all work an employer suffers or permits its employees to work. This may occasionally include an employee's travel time.
A workday is a consecutive 24-hour period beginning at the same time each calendar day, but it may begin at any time of day. The beginning of an employeefffds workday need not coincide with the beginning of that employeefffds shift, and an employer may establish different workdays for different shifts.
The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.
Overtime pay refers to the compensation you receive for working beyond normal working hours. For example, if you're eligible to receive overtime pay and your standard workweek is 40 hours, working 50 hours in a given week means you'll earn overtime pay for those 10 extra hours.
What are hours worked? The United States Department of Labor says, In general, hours worked includes all time an employee must be on duty, or on the employer's premises or at any other prescribed place of work. Also included is any additional time the employee is allowed (i.e., suffered or permitted) to work.
Attendance at lectures, meetings, training programs and similar activities need not be counted as working time only if four criteria are met, namely: it is outside normal hours, it is voluntary, not job related, and no other work is concurrently performed.