Overtime laws in the U.S. are designed to ensure employee rights, and as an employer, knowing what rules to follow can be complex. This is because even though the federal Fair Labor Standards Act (FLSA) sets standard requirements, each state can set its own overtime laws. If a state does not have regulations in place, FLSA’s requirements apply. If a state DOES have overtime laws, either those laws OR the FLSA requirement will apply. The rule is that the most “employee-friendly” rules apply… and that can be difficult to decipher. Luckily for local employers, there are no overtime laws in Alabama, so employers are beholden to the federal laws.
Current Overtime Regulations
As stated above, the federal rules regarding overtime are explained in the Fair Labor Standards Act (FLSA). Changes to the FLSA rules were made in 2020 to update the minimum weekly standard salary level to reflect growth in wages and salaries. Scroll over each circle below to learn the basics of current regulations.
Who is Eligible for Overtime Pay?
Are there Limitations?
How Does Overtime Payment Work?
Avizo Payroll Solutions
If you’re reading this and feeling overwhelmed, Avizo has several solutions available. We can set you up with software to track employee time, find simpler payroll software, or even be your outsourced provider. If you want to do more research on overtime rules before making any big decisions, we recommend visiting the Department of Labor’s website for more guidance, online tools, posters, and more.
Crissy is Avizo’s payroll pro. Having been with the firm for 25 years, she’s developed many talents, and we rely on her to be our go-to guide for payroll deadlines, processes, and software.