UNDERSTANDING
FEDERAL AND STATE OVERTIME LAWS
Under the Fair Labor Standards Act, non-exempt (overtime
eligible) employees must be paid time and a half for
those hours worked in excess of 40 per week. We do
not offer compressed workweek schedules that require
overtime to be paid due to state or federal law.
Therefore,
the 9/80 schedule is not usually an option for non-exempt
employees, unless a change is made in the official start of the
workweek as described earlier. The 9/80 typically creates one 4-day week
(36 hours) and one 5-day week (44 hours), which requires four hours of overtime pay. Exempt
employees are not affected by these overtime
requirements.
Managers
and employees in California, Nevada or Alaska should
consult with their Human Resources specialist to find
out what kind of compressed workweeks, if any, are
available in those states for non-exempt employees.
These states go beyond the federal overtime requirement
to require that overtime be paid after eight hours in a
day, adding costs to any CWW.
However, these states
may – like California – have special procedures for
setting aside the state requirements. Since these
regulations and procedures change periodically, it is
essential to check on the status of CWW offerings with
your HR representative.
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