In general, the Fair Labor Standards Act requires overtime for employees who work more than 40 hours per week. The extra hours must be compensated at an overtime rate of at least time and a half. Thus, an hourly working earning ten dollars an hour would earn fifteen dollars an hour for overtime.

     However, there are numerous exemptions to this general rule, which might apply to you. Three of the most common exemptions are the Executive, Administrative and Professional exemptions. The Executive exemption can apply to an employee who has management responsibility over other employees. The Administrative exemption can apply to an employee who makes policy decisions for the employer. There are two types of Professional exemptions. One is the professional who has a specialized degree; the other is the creative professional who works in an artistic field.

     Each of these exemptions must meet stringent tests to be used to deny overtime. Employers often erroneously assume an exemption applies because the employee has some responsibility that fits into these categories. Employers can wind up with liability because they are overbroad in their application of the act, leading to failure to pay required overtime.

     Other exemptions may also apply. These include exemptions for agricultural workers, police officers, fire fighters, outside sales, highly compensated employees, owners and computer employees.

     In short, most hourly workers will be entitled to overtime for hours worked over 40 each week. Employees working excess hours without overtime compensation may want to consult with an attorney to determine whether the employer is entitled to withhold such payment. Employers who are not paying overtime to employees based on an exemption may also want to consult with an attorney to determine whether the exemption is valid. Penalties for failure to pay required overtime can be substantial, and failure to pay can lead to bigger problems than just paying the overtime that should have been paid.

     If you have a question about how your employees are being paid or whether overtime exemptions are applicable, it is usually a good idea to address the issue with your attorney.