Overtime pay is calculated by multiplying the hourly wage of an employee by 1.5. Federal law sets the standard working week at 40 hours, so any time worked past this point is considered overtime. However, some employees are exempt, typically those on a salary or fixed wage.Know More
It is important to note that employees who work overtime are only paid more for the number of hours worked past the 40-hour mark. The first 40 hours that an employee works is still paid out at the regular rate. The Wage and Hour Division of the U.S. Department of Labor oversees overtime pay and related working conditions through the Fair Labor Standards Act. Employees who are exempt from overtime pay are reviewed on a case-by-case basis.
Overtime pay is not awarded for work completed at night, on holidays, or over the weekend. The rates for working during these times are handled between the employer and the unions. The FLSA stipulates that employers must keep detailed records of all wage payments to employees, including overtime pay. If an audit is conducted on a company's books, the employer must be able to show that FLSA standards were followed for allocating overtime pay. Finally, some state laws regarding overtime pay are stricter than those of the federal government. In this case, the more stringent law must be followed.Learn more about Salaries
According to the United States Department of Labor, an employer may reduce the pay of any nonsalaried employee as long as the pay does not fall below minimum wage. An employer is also allowed to reduce the number of hours an employee is scheduled to work.Full Answer >
The Ontario Employment Standards Act requires that employers compute severance pay as a terminated employee's regular weekly wage multiplied by the sum of the employee's number of years of employment, with any partial years pro-rated. This amount is capped at 26 weeks' pay, as of 2015.Full Answer >
Employers may reduce an hourly employee's pay rate as long as the lowered rate is equal to at least the federal minimum wage, says the U.S. Department of Labor. Employers are also allowed to reduce hourly employees' hours, but must continue to pay any overtime accrued.Full Answer >
The hourly pay of a full-time regular mail handler in a USPS distribution center as of 2013 started at $15.85, with basic overtime pay at $23.78. According to the United States Postal Service website, postal employees receive regular pay raises based on length of employment and cost of living increases.Full Answer >