Tag: overtime pay

On March 5, 2018, the California Supreme Court decided how an employee’s overtime pay rate should be calculated when the employee earns a flat sum bonus during a single pay period. In Alvarado v. Dart Container Corporation of California (Alvarado), the Court determined that when calculating overtime in pay periods during which an employee earns…

Question: A California employee worked four hours of overtime during the last payroll period; when must the overtime wages be paid? Answer: Payment of overtime wages earned in one payroll period must be paid no later than the payday for the next regular payroll period. Only payment of the overtime wages may be delayed until…

Question: How do we calculate weighted overtime? Answer: Weighted overtime is calculated as follows: Add the dollar amount of all hours worked plus the amount of the bonus. Divide that amount by the total hours worked. This becomes your hourly wage to use for calculating the weighted overtime. The overtime rate is 1.5 x the…

Question: What are the new FLSA guidelines on overtime pay? Answer: On March 13, 2014, President Obama directed the Secretary of Labor to begin the process of addressing overtime pay protections, specifically regarding overtime for some exempt workers and simplifying the exempt/non-exempt classification process. There have been no changes made as of this date, but the…

Question: Is the regular rate of pay the same as an employee’s hourly rate of pay? Answer: Not necessarily – Particularly when it comes to calculating overtime. Details: According to the Federal Department of Labor, the Fair Labor Standards Act (FLSA) requires that covered, nonexempt employees in the United States be paid at least the federal minimum wage for…

Question:  What exposure to overtime pay does the company have when exempt employees clock in and out per company policy? Answer:  There is no requirement under the federal Fair Labor Standards Act (FLSA) that prohibits an employer from requiring exempt employees to clock in or out.  However, this practice could signal potential misclassification issues.  If you…

Question:  How does a California employer compensate a nonexempt employee for overnight trips? Answer: This is a lengthy answer to a complicated topic with both California wage and hour rules and federal rules that apply to the issue. Under both the California and federal Fair Labor Standards Act rules, the definition of “hours worked” is…