Mar 12, 2025

Is This Your Situation: You're Confused About Overtime

Not everyone in your office will qualify for overtime pay, but how do you determine employee classification? Read through to learn more about overtime and who qualifies.

 

In most circumstances, employers must pay overtime to nonexempt employees who work more than 40 hours a week. (In some states, overtime is more than 8 hours a day.) But not everyone qualifies for overtime pay. In most cases, the line is drawn between hourly and salaried employees, and misclassifying your staff can be a problem in the long term. So how do you know which category your team falls into and whether or not you should provide overtime pay?  Here is a basic introduction to the classifications and how they might apply to your company.

  • Overtime rates. There are two primary categories of overtime: "time and a half" and "double time," which is often referred to as holiday pay. Time and a half is calculated at 50 percent over the employee's hourly salary. So if an employee makes $10 an hour and works overtime hours, those additional hours would be paid at $15. Double time is the law only in California. Some companies may choose to pay double time as an incentive if an employee works on a holiday. There may be union rules as well.
  • Salary versus hourly. For most people, work classifications are divided between hourly and salaried employees. Hourly employees are paid by the hour. If they work more than the 40-hour-a-week maximum, they earn time and a half. A salaried employee receives an annual amount that is divided up per paycheck throughout the year.
  • Exempt versus nonexempt. The real categories are "exempt" and "nonexempt." These classifications come directly from the Fair Labor Standards Act (FLSA), which regulates overtime and minimum wage pay. According to the FLSA, the biggest population of exempt workers are classified as "white collar," which includes administrative, executive, computer or outside sales professionals. If you are uncertain about the classification of your employees, check with the FLSA to learn more.

Are you classifying your employees correctly when it comes to hourly rates and overtime pay? Give us a call and we'll be happy to help you sort through the rules and make sure you're compliant.

  ©2025


 

MORE RECENT NEWS…


May 07, 2026

Stronger Trust, Stronger Teams: Practical Steps for Leaders

A business operates more smoothly when employees trust their leadership. Clear communication, steady access to their manager and genuine recognition can reduce turnover, limit confusion and improve daily operations. Read through to learn how you can build that trust through simple, consistently applied habits.


May 06, 2026

Staying Power: Employee Retention Through Stay Interviews

Employee retention, especially among top performers, is key to the success of any organization. How can you, as an employer, encourage your best employees to stay with you? Read through to learn how conducting stay interviews can be an important retention strategy for your company.


May 05, 2026

Data Analytics To Replace Gut Instincts

Every time you run payroll, you can use the data to analyze patterns in overtime, sick leave and benefits costs. Read through for information about how this data can help you establish a budget for your business.


May 04, 2026

Employee or Independent Contractor? What Employers Need To Know

U.S. businesses increasingly rely on independent talent, but misclassifying workers can trigger audits, penalties and costly litigation. Read through to understand how to classify workers correctly and avoid common pitfalls.


Apr 09, 2026

Onboarding in the Emerging New Normal

Attracting and retaining talent is a top priority for many companies. Paying attention to the company's onboarding process is key to engaging the new hire. Read through for some tips on keeping valued employees.


Apr 08, 2026

Cross-Training and Upskilling: Building a Stronger Workforce

The success of an organization relies largely on the strength of its workforce. Today's unpredictable business climate requires employees to be nimble. Read through for a discussion on why cross-training and upskilling your staff should be a top priority.




More News & Press can be found in our Archive.