I pay my employees every two weeks. Do I have to pay overtime if they work over 80hrs for the pay period, or do I have to pay if they work over 40hrs in one week?
2007-05-03 05:51:38 · 21 answers · asked by Anonymous in Business & Finance ➔ Small Business
You calculate the time on a weekly basis so you would need to pay the OT for that week.
2007-05-03 05:55:09 · answer #1 · answered by ? 5 · 1⤊ 0⤋
Since your payroll is drawn every two weeks, you calculate overtime based on anything over 80 hours a pay period (every two weeks). (I'm guessing you advised them that it's a two-week pay cycle.) This works for HOURLY EMPLOYEES ONLY. Hourly employees earn overtime after 40 hours of time worked (not including sick time, vacation, holidays, etc.) That means that, although your employee worked 45 hours the second week, he/she only worked 35 hours the first week, which would then push the extra 5 hours into regular time (to make up the shortage in week 1). However, if your employee had worked 40 hours week 1 and 45 hours week 2, he/she would be entitled to 5 hours OT.
If you need help with this, check out the Department of Labor (USDOL) website. They're incredibly helpful, and the site isn't all that difficult to navigate (as far as government sites go, anyway).
2007-05-03 06:03:17 · answer #2 · answered by mjkl1 3 · 0⤊ 0⤋
Yes, you do have to pay overtime for the second week.
Here's how it works... Overtime is ANY time over 40 hours in ONE week. So your employee could work 20 hours in week one, and 50 in week two, and you would have to pay 10 hours of overtime.
Them's the rules... and as an employer, you should have already been WELL aware of employment laws. I suggest familiarizing yourself as soon as possible, or you may find yourself in legal trouble paying a lot more to someone that time and a half :)
Good luck!
2007-05-03 05:56:26 · answer #3 · answered by lionsworth 3 · 0⤊ 0⤋
Well, if all the facts that your presented are correct (and I assume they are) then you have a couple of choices. 1) If possible, find a way to approach the subject with your previous employer and perhaps work out an amicable way to resolve this. If you go in with guns blaring, then you will not decent response. FIjnding a way to inform them that you are aware of your rights but don't immediately "blame" them might be an option. Let them know you are only asking for what is fair and that you are not trying to penalize them. 2) You could go the direct route and contact your state labor board and give them all the facts and see what they have to say. Remember, your employer will in all likelyhood have "their versioin of the story" so you would need some sort of proof - like timecards and such. Now that I think of it, you probably really don;t have much of a claim unless you can provide documentation of the extra hours worked. You previous employer may also point that out to you and tell you to shove off, knowing you have no proof. Depending on the amount you believe is owed to you, it may be worth consulting iwth a lwyer. Of course, there will be fees associated with that, and you may end up with nothing when all is said and done.
2016-04-01 06:51:18 · answer #4 · answered by ? 4 · 0⤊ 0⤋
You pay overtime for anything over 40 hours in one work week. Some jobs pay a 35 hour work week and some pay a 40 hour work week. But like I said anything over 40 hours is overtime.
2007-05-03 05:58:35 · answer #5 · answered by Slim G 1 · 0⤊ 0⤋
The law would vary, depending your state. But in Virginia, the law states that (to make it VERY brief and watered down...) any time over 40 hours per work week is considered overtime. It is not based on a pay period, it is based on number of hours per 7 day period.
I'd recommend looking up labor laws in your state.
2007-05-03 05:56:56 · answer #6 · answered by ~*Kim*~ 3 · 0⤊ 0⤋
It depends on weather the employee is classified as hourly or salary. If paid hourly, then you may have to go 5 hrs OT in that 45 hr week. If employees abuse the 80 hour pay period, and expect OT in your example, then pay weekly. If the employee is salary, then pay for 80 straight time hours.
2007-05-03 16:33:25 · answer #7 · answered by Anonymous · 0⤊ 0⤋
If they have over 40 hours WORKED time, then you have to pay overtime. Now if one of those days was a holiday, or they took sick leave, then they'll have more than 40 hours, but they didn't actually WORK those 40 hours. So in that particular case you wouldn't. But any other time, you do.
2007-05-03 06:03:10 · answer #8 · answered by Monica A 1 · 0⤊ 0⤋
You would be required to pay 5 hours of OT for the second week......but as in my state if you are a small business and you don't exceed $1 mill in sales per year you are not even required to pay OT at all. I didn't know this until a few years ago when I started my own business.
2007-05-03 07:16:56 · answer #9 · answered by jabksufan 2 · 0⤊ 0⤋
you pay overtime if they work over 40 hours a week
2007-05-03 05:55:16 · answer #10 · answered by Bailey 5 · 1⤊ 0⤋
If a pay period is 2 weeks then it has to exceed the 80 hours I believe but im not an expert.
2007-05-03 05:55:29 · answer #11 · answered by elaineperez22 1 · 0⤊ 1⤋