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Department of Labor poster notifying employees of rights under the Fair Labor Standards Act. The Fair Labor Standards Act of 1938 29 U.S.C. § 203 [1] (FLSA) is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week.
Out of approximately 120 million American workers, nearly 50 million are exempt from overtime laws (US Department of Labor, Wage and Hour Division, 1998). As of 2021, salaried workers making $684 per week or more are exempt from overtime pay (equivalent to $35,568 per year). [ 9 ]
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The federal right to a minimum wage, and increased overtime pay for working over 40 hours a week, was designed to ensure a "minimum standard of living necessary for health, efficiency, and general well-being of workers", even when a person could not get a high enough wage by individual bargaining. [86]
10 Tricks Employers Use To Cheat Workers Out Of Overtime. Donna Ballman. ... or fall within a specific exemption, your employer is legally required to pay you time and a half for all overtime worked.
The U.S. Department of Labor rule will require employers to pay overtime premiums to workers who earn a salary of less than $1,128 per week, or about $58,600 per year, when they work more than 40 ...
Many salaried workers and commission-paid sales staff are not covered by overtime laws. These are generally called "exempt" positions, because they are exempt from federal and state laws that mandate extra pay for extra time worked. [122] The rules are complex, but generally exempt workers are executives, professionals, or sales staff. [123]
Section 13(a)(1) of the Fair Labor Standards Act of 1938 exempted "bona fide executive, administrative, or professional" employees from overtime pay requirements. [2] In determining whether an employee was exempt, the US Department of Labor and the Secretary of Labor applied a "salary-basis" test in 1940 that was not applicable to state and local employees.
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