[Mentavious]

I’ve got a newbie question for those who own their own business.

The law states that I must provide overtime (1.5x) for hourly workers once they reach 40 hours.

For instance,

A worker accumulated 45 hours in a week

40 hours x 20 an hour would be 800
5 hours of overtime would 5 x 30=150

That would be $950 for 45 hours of work

What if I increased their pay for the week to what they make as an average per hour including OT?

So...21.11 (the hourly pay when you average in OT pay) X 45=950 a week

Is there anything legally I should consider when I’m not listing overtime in the wages?

[Repo]

If you did that they would argue their overtime rate should be 1.5 times that average. You need to break this out for your own sake.

[porscheguy]

Pay their wage up to 40 hours, then pay their OT if they exceed 40 hours. Not sure if you’re trying to simplify payroll or what, but in the long run, you’re better off doing it by the books. It covers your ass 5-10 years down the road when a disgruntled employee wants to fuck with you.

[Plus Oultre]

Don't mess with the hourly rate in that way. Like the previous posters say, keep regular hours at the regular rate and the OT at OT rate. What you can do instead of paying an hourly rate, pay them a salary: $950/week and that's it, no matter how many hours they work. For this, they must be exempt employees.

For details you have to look up the Fair Labor Standards Act (FLSA.) https://webapps.dol.gov/elaws/whd/flsa/screen75.asp

A rough explanation is below:

What are exempt employees?
1) Is paid at least $23,600 per year (or $455 per week)
2) Is paid on a salary basis
3) Performs exempt job duties

Some Exempted Jobs

Quote:

Commissioned sales employees of retail or service establishments are exempt from overtime if more than half of the employee's earnings come from commissions and the employee averages at least one and one-half times the minimum wage for each hour worked. You may also wish to review the applicable regulation.

Computer professionals: Section 13(a)(17) of the FLSA provides that certain computer professionals paid at least $27.63 per hour are exempt from the overtime provisions of the FLSA.

Drivers, driver's helpers, loaders and mechanics are exempt from the overtime pay provisions of the FLSA if employed by a motor carrier, and if the employee's duties affect the safety of operation of the vehicles in transportation of passengers or property in interstate or foreign commerce. You may also wish to review the applicable regulation.

Farmworkers employed on small farms are exempt from both the minimum wage and overtime pay provisions of the FLSA. You may also wish to review the specific regulation. Young workers employed on small farms, with parental consent, are also exempt from the child labor provisions of the FLSA. For more information on exemptions from the child labor provisions of the FLSA in agriculture, click the underlined text. Other farmworkers are exempt from the FLSA's overtime provisions. You may also wish to review the specific regulation.

Salesmen, partsmen and mechanics employed by automobile dealerships are exempt from the overtime pay provisions of the FLSA. You may also wish to review the applicable regulation.

Seasonal and recreational establishments: Employees employed by certain seasonal and recreational establishments are exempt from both the minimum wage and overtime pay provisions of the FLSA. You may also wish to review the applicable regulation.

Executive, administrative, professional and outside sales employees: (as defined in Department of Labor regulations) and who are paid on a salary basis are exempt from both the minimum wage and overtime provisions of the FLSA.

Other FLSA Exemptions

Quote:

Other FLSA Exemptions

(MW = minimum wage OT = overtime CL = child labor)

Aircraft salespeople - OT
Airline employees - OT
Amusement/recreational employees in national parks/forests/Wildlife Refuge System - OT
Babysitters on a casual basis - MW & OT
Boat salespeople - OT
Buyers of agricultural products - OT
Companions for the elderly - MW & OT
Country elevator workers (rural) - OT
Workers with disabilities - MW
Domestic employees who live-in - OT
Farm implement salespeople - OT
Federal criminal investigators - MW & OT
Firefighters working in small (less than 5 firefighters) public fire departments - OT
Fishing - MW & OT
Forestry employees of small (less than 9 employees) firms - OT
Fruit & vegetable transportation employees - OT
Homeworkers making wreaths - MW, OT & CL
Houseparents in non-profit educational institutions- OT
Livestock auction workers - OT
Local delivery drivers and driver's helpers - OT
Lumber operations employees of small (less than 9 employees) firms - OT
Motion picture theater employees - OT
Newspaper delivery - MW, OT & CL
Newspaper employees of limited circulation newspapers - MW & OT
Police officers working in small (less than 5 officers) public police departments - OT
Radio station employees in small markets - OT
Railroad employees - OT
Seamen on American vessels - OT
Seamen on other than American vessels - MW & OT
Sugar processing employees - OT
Switchboard operators - MW & OT
Taxicab drivers - OT
Television station employees in small markets - OT
Truck and trailer salespeople - OT
Youth employed as actors or performers - CL
Youth employed by their parents - CL

Also, check with your State department of labor.