Posted by Michael Dennis The issue of overtime compensation is highly regulated. At its most basic, non exempt employees Must be paid overtime and exempt employees are not paid overtime. The real key is to determine who is and who is not properly classified as exempt vs. non-exempt. Federal regulations are very clear [once you study and understand them] as to how employees MUST be classified. Here are two general statements: For a fairly concise description of the law in this area, I suggest you visit this website: www.dol.gov/dol/topic/wages/overtimepay.htm Good luck. If you have a follow up question, please contact me at info@coveringcredit.com Michael Dennis
on 7/29/2002, 7:10 pm
There are no industry specific overtime regulations in the U.S. Overtime regulations are governed by state as well as federal law. To determine which applies, the employer simply needs to know which is more favorable to the employee.
1. Most employees should be classified as non exempt and
2. Many employees are misclassified as exempt when in fact they should be classified as non exempt - and this problem of misclassification can result in the employer having to pay years of unpaid overtime plus interest plus penalties plus employment taxes.
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