Daily Overtime Laws

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Business owners must be careful not to violate federal daily overtime laws. Business owners whose companies generate more than $500,000 a year in sales volume must follow the federal Fair Labor Standards Act and its rules regulating overtime pay. Business owners who don't follow these rules could face serious fines if their employees file overtime pay complaints.

No Hourly Limits

The Fair Labor Standards Act does not limit the number of hours employees may work in any given day or week. The act also does not limit the number of overtime hours that employers may schedule for their workers. There is one requirement, though: Employees must be at least 16.

Required Pay

The Fair Labor Standards Act is specific in spelling out that nonexempt employees must receive at least one-and-a-half times their normal pay rate for every hour more than 40 that they work in a week. The law does not regulate companies on how they must spread out these overtime hours during a typical week. Employers, then, are allowed to give their workers, say, five overtime hours on Monday and none on Tuesday.

Exempt Employees

Salaried workers, including those employees in management positions, are not covered by federal overtime laws. Employers are not required to provide overtime pay for their salaried workers who spend 50 hours a week completing a project instead of the standard 40.

Exempt Days

The federal rule does not require employers to provide overtime pay on Saturdays, Sundays or holidays. The rules only hold during the regular Monday through Friday workweek.


About the Author

Don Rafner has been writing professionally since 1992, with work published in "The Washington Post," "Chicago Tribune," "Phoenix Magazine" and several trade magazines. He is also the managing editor of "Midwest Real Estate News." He specializes in writing about mortgage lending, personal finance, business and real-estate topics. He holds a Bachelor of Arts in journalism from the University of Illinois.

Photo Credits

  • office workers image by Tracy Martinez from Fotolia.com