One of the quickest ways for employers to get themselves in trouble is by not paying their employees for working overtime. Failure to do so can result in steep penalties, and employers should keep themselves up to date on the latest laws. Employees should also be familiar with the overtime laws to make sure that they are getting paid what they are due.
The Colorado Department of Labor and Employment has a quick rundown of the rules:
Employees shall be paid time and one-half of the regular rate of pay for any work in excess of: (1) forty hours per workweek; (2) twelve hours per workday, or (3) twelve consecutive hours without regard to the starting and ending time of the workday (excluding duty free meal periods), whichever calculation results in the greater payment of wages.
Workweek Definitition and Overtime
A workweek is defined as any consecutive seven-day period starting with the same calendar day and hour each week. A workweek is a fixed and recurring period of 168 hours, seven consecutive twenty-four hour periods, and is typically established by the employer. Hours worked in two or more workweeks shall not be averaged for computation of overtime.
Regular Rate of Pay
The regular rate of pay for an employee is used to calculate overtime pay. The regular rate of pay is expressed as a rate per hour, and it is determined by dividing the total remuneration provided to an employee in any workweek by the total numbers of hours actually worked in that workweek.
The regular rate of pay includes all compensation paid to employees including the set hourly rate, shift differential, non-discretionary bonuses, production bonuses, and commissions.
The following are excludable from the regular rate of pay: business expenses, bona fide gifts, discretionary bonuses, employer investment contributions, vacation pay, holiday pay, sick leave, or jury duty.
photo: http://www.flickr.com/photos/consumerist/ / CC BY 2.0
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Wed, Jan 20, 2010
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