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Money Girl
161 MG Are You Entitled to Overtime Pay?
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Phones would be a 24-monthly bill credits for well-qualified customers, contact us before canceling entire account to continue bill credits or credit stop and balance on a required finance agreement too. Bill credits end if you pay off devices early, ctmobile.com. Hi, everyone, and welcome back to Money Girl's Quick and Dirty Tips for Richard Lifes. I'm Laura Adams. Over the years, I've seen a lot of confusion in the workplace about who's entitled to receive overtime pay and who isn't. It can be a pretty confusing topic, but in this show, I'll try to clear up any questions that you may have about overtime. The rules for overtime pay are part of the Fair Labor Standards Act or FLSA. It's a federal law that's enforced by the wage and hour division of the U.S. Department of Labor. Overtime pay is compensation for certain employees who work more than 40 hours in a given work week. You'll be paid at a minimum of one-and-one-half times the worker's normal rate of pay for any hours that exceed 40. For example, let's say you qualify for overtime pay, earn $20 an hour, and work 42 hours in a week. Your minimum overtime rate would be $30 an hour for the two hours that you worked over 40. That's $20 an hour times 1.5. So your weekly pay would total $860, $800 for your regular pay, plus $60 for your overtime pay. There are two ways to qualify for overtime. One has to do with requirements concerning your employer, and the other has to do with the type of work you do. Let's talk about the employer requirements first. All employers with at least two employees must pay overtime wages to qualified workers, unless the business earns less than $500,000 in annual revenue. But there are some exceptions to that rule. If a business or organization earns less than $500,000, they still have to pay overtime if they're a school, hospital, government agency, an institution that cares for residents who are sick, disabled, or mentally ill, or an enterprise that has employees who perform work involved in interstate commerce. When it comes to overtime pay, there are two categories of employees, those who are exempt and those who are non-exempt. Employers are required to pay non-exempt employees overtime, but they don't have to pay overtime to exempt employees. If the exempt and non-exempt wording confuses you as much as it does me, I've got a handy memory trick that may help you keep it straight. Think about the words "non-exempt" and "covered." They both have an "o" as their second letter, so non-exempt workers are covered. A non-exempt worker is covered by the law to receive overtime. Got it? Employees are generally considered "non-exempt" and entitled to receive payment for their overtime work unless their job falls under an exemption category. There are six common categories of workers who are not entitled to be paid for overtime work. 1. Executive employees have responsibility for managing a business or one of its major departments. They have the authority to hire and fire employees and to direct the work of at least two other employees. 2. Administrative employees have responsibility for managing general business operations and exercising independent judgment regarding significant office matters. 3. Professional employees perform work that requires advanced knowledge such as a doctor or lawyer. Or they do work that requires invention, imagination, or originality, and some artistic or creative endeavor such as a musician or writer. 4. Outside sales employees must work away from their employer's office and have responsibility for obtaining orders or completing contracts for services to be paid by a customer. 5. Education and skills such as analyzing systems, consulting with users, programming, and designing software. Nearly a billion people experienced hunger last year and organizations on the front line need support. That's why at Global Citizen Festival, City announced a new commitment supporting World Food Programs mission and you can help. City will match donations to World Food Program up to $250,000 until December 1 or until we reach our goal, whichever comes first. Visit wfpusa.org/city to make a donation and double your impact. For the love of making a difference, for the love of progress, City. September is a great month for planning. 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Go to PolicyGenius.com or click the link in the description to get your free life insurance quotes and see how much you can save. That's PolicyGenius.com. Canva presents a work-love story like no other. Meet productivity. She's all business. The Canva Doc is done. Creativity is more of a free thinker who will whiteboard brainstorm their worlds apart, but sometimes opposites attract thanks to Canva. The data is in the deck. And now. The animated graph Canva where productivity meets creativity, now showing on computer screens everywhere. Love your work at Canva.com. And six highly compensated employees who perform some type of executive, administrative, or professional work and earn annual compensation of $100,000 or more. So if you have a job that falls under one of the categories that I just mentioned and you earn at least $455 per week, you're considered an exempt employee and not eligible to be paid for overtime. In addition to those categories of employees, there are many other kinds of workers who are also exempt and don't qualify for overtime, such as Commission sales employees, farm workers, taxi drivers and certain transportation employees, mechanics and auto dealerships, news editors and announcers, domestic workers who live with their employer, police officers, paramedics and firefighters. Employees who perform manual or repetitive labor, such as factory workers, warehousemen and construction workers however, are not exempt. They must be paid overtime no matter how much they earn. What about overtime for independent contractors? An independent contractor is not considered an employee and therefore is not entitled to receive overtime pay. But be aware that simply having an employment agreement that says you're an independent contractor doesn't necessarily mean that you're not an employee according to the law. I'll put a link on the blog at moneygirl.quickendirtytips.com for more information about the differences between an employee and an independent contractor. The requirement for an employer to pay overtime can't be waived by an agreement between an employer and a worker. If you qualify for overtime and work over 40 hours, you're entitled to receive it even if an employer tells you that overtime work isn't permitted and having a fancy job title doesn't mean you aren't entitled to overtime. Your specific job duties are what matter for determining your exemption status. If you're still not sure, I've included some online tools in the resources section on the blog to help you determine if you're eligible for overtime pay. I'm glad you're listening. Cha-ching! That's all for now, courtesy of Money Girl, your guide to our richer life. Imagine earning a degree that prepares you with real skills for the real world. 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