Employees are generally familiar with the concept of overtime. If you work above and beyond 40 hours per week, not only is that time compensated, but it is compensated at a higher rate than your normal rate of pay. However, a concept like overtime is more complex than it might appear. This can make it difficult and confusing to know whether you have a claim for unpaid overtime in Arizona.
9 Overtime-Related Questions and Answers
Employers can get into legal trouble for failing to pay overtime when it is due, regardless of whether it was intentional or not. Here are nine commonly asked questions workers have about overtime:
1. What Is Overtime?
Any hours worked above and beyond normal working hours can be considered overtime. “Overtime” is also commonly used to refer to the pay one receives for such work. Special “overtime pay” is only payable to certified workers who work above and beyond 40 hours in a given workweek.
2. Does Overtime Mean Extra Pay for Working Holidays?
No, overtime does not automatically mean you receive increased pay just because you are working on a holiday. You will only receive extra, enhanced pay if the hours you work on a holiday are above and beyond 40 hours for the entire workweek.
3. How Much Is Overtime Pay?
The Fair Labor Standards Act (FLSA) dictated that if an employee works over 40 hours in a given workweek, that overtime work must be compensated at a special rate. Specifically, that rate must be no less than one and one-half times the employee’s normal rate of pay. Covered employers can pay employees who earn overtime more than this rate, but they may not pay any less.
For example, suppose that a worker’s normal rate of pay is $20 per hour. They work 50 hours in a given workweek. The first 40 of those hours would be compensated at $20 per hour, and the remaining 10 hours of overtime would be compensated at $30 per hour.
4. Who Is Eligible for Overtime?
Not every worker is eligible for overtime. Some workers are considered “exempt,” meaning they will not be compensated with overtime pay even though they may work more than 40 hours in a given week. As an example, certain “learned professionals” who have advanced knowledge are not eligible for overtime pay.
Similarly, workers are classified as part-time and work fewer than 40 hours in a given week. These workers are not eligible for overtime so long as they do not work over 40 hours in a given workweek. For example, a part-time worker who regularly works 20 hours per week does not earn overtime if they work 25 hours in a given week.
5. What About Workers Who Are Paid Biweekly?
Suppose that you are paid every two weeks. During one workweek, you work 60 hours. However, the next week you work only 10, meaning you average less than 40 hours per week during the pay period. You would still be eligible for 20 hours of overtime pay, as the FLSA determines eligibility based on hours worked during a workweek.
6. Do Undocumented Immigrants Receive Overtime Pay?
An employee’s immigration status is irrelevant under the FLSA for purposes of determining overtime eligibility. As long as an undocumented worker meets all other eligibility requirements for earning overtime pay, they will receive overtime pay for all time worked over 40 hours in a workweek.
7. When Does an Employer Pay Overtime?
Employers are required to compensate for overtime at the same time as they compensate for all other time worked during that workweek. For example, suppose that you are paid every two weeks. Any overtime you worked during that two-week period would be compensated at the same time as all your other time worked during that pay period.
8. Why Might Employers Not Pay Overtime?
Employers find overtime pay expensive, so they may try to avoid paying it. They may also not understand overtime laws and fail to pay out of ignorance. Regardless of the reason, failing to pay overtime is illegal.
9. What Damages Are Available for Unpaid Overtime?
If an employer fails to pay overtime when it is earned, you can make a demand for such payment. If the employer persists in failing to pay you, then the employee can seek treble damages in a legal action. These damages are equal to three times the amount of the unpaid wages.
Get More Help From Ernst Brown & Draper
If you have additional questions about your obligations as an employer to pay overtime, or if you believe your employer did not pay you overtime as required, Ernst Brown & Draper wants to hear from you. For business owners, we can help you proactively avoid unpaid overtime violations. For aggrieved employees, our experienced team can assist you in getting you the wages and damages you deserve.
