Overtime laws, minimum wage, OT regulations – they’re not exactly topics of casual conversation. However, each of these concepts is crucial to pay employees.
Understanding overtime legal requirements is crucial to budgeting your payroll as early as possible, so you don’t end up paying more than expected later.
In this post, we detail the core concepts of overtime rules and provide a comprehensive list of overtime laws by state.
Overtime laws (also known as overtime rules) refer to the increased amount of money you have to pay an employee after a set amount of time.
This set amount of time, whether it be on a daily or weekly scale, varies from state to state.
For instance, in California, the initial amount of time an employee must work before receiving overtime pay is only 8 hours. While in Kansas, overtime doesn’t take effect until 46 hours have been worked in a week.
Once your employees have crossed the threshold of their overtime pay law, they then earn “pay and a half.”
Expressed as “1.5x,” this multiplier is applied to the set rate in your employee’s contract. Unless negotiated higher, this rate will be the minimum wage.
To check out the full list of minimum wage by state, be sure to check out our chart above.
While almost every employee is non-exempt from overtime laws, some guilds have special rules for their employees.
For example, in the world of television and film, minimum rates for most actors are determined by The Screen Actor’s Guild. So while minimum wage in California may be $12, the minimum amount you’ll pay a guild member is much, much higher.
While overtime laws dictate a California employee will make 1.5x after 8 hours, SAG talent only makes that overtime pay after 12 hours. That’s one of many reasons why you should hire a payroll company to run your payroll.
In addition to knowing the ins and outs of overtime rules, newer companies allow you to calculate wages through an app, saving you time, money, and headaches.
Set by the Fair Labor Standards Act, the federal overtime law (or federal OT law) states that employees shall receive overtime pay after 40 hours have been worked in a week.
When states don’t have set overtime laws, they automatically default to this, as expressed on our chart of overtime law by state.
Understanding the nuances of overtime law isn’t just a way to impress your Department of Labor friends. Without knowing the rules in your state, you may end up owing your employees way more than you thought you did.
Got a burning question about overtime laws by state? Hit us up in the messenger.
At Wrapbook, we're all about providing the very best free resources to producers and their crews. However, this post is not a substitute for professional legal advice. Answers do not create a company-client relationship, nor is it a solicitation to offer legal advice. Seek the advice of a licensed attorney in the appropriate jurisdiction before taking any action that may affect your decisions or rights.
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