How to add and calculate Overtime rules to Pay Employee payroll.
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Federal and State overtime requirements
Federal overtime requirements
Under the Federal Labor Standards Act (FLSA), overtime is paid to nonexempt employees. Overtime is defined as all time physically worked more than 40 hours in a workweek. The FLSA requires that nonexempt employees be paid at least 150% of their regular rate of pay for all hours physically worked more than 40 in a work week.
FLSA Link: https://www.dol.gov/agencies/whd/overtime
State overtime requirements
Even though the FLSA requires overtime to be paid to nonexempt employees who work more than 40 hours in a work week, each state can set its own overtime requirements. For more information, check the appropriate state agency. Some states require a 50% overtime premium on a daily basis after a nonexempt employee works 8 hours in a day. Or a 100% overtime premium when the employee works more than 12 hours in a day.
What about salaried employees?
Salaried employees aren't necessarily exempt from the FLSA's overtime requirements. Only those employees whose salaries exceed a certain level and who meet the duty and responsibility tests for exemption are classified as exempt. All other salaried employees must be paid overtime.