Must You Pay Time and One-Half?
There are four exceptions to the rule that overtime must be paid on the basis
of one and one-half times an employee's regular rate, under federal law. The
first three require an agreement between the employer and the employee before
overtime work is performed; no agreement is necessary for the fourth.
- Piece workers may be paid one and one-half times their piece rates for
- Employees working at two or more hourly rates (for doing two different
jobs within one business) may be paid one and one-half times the hourly rate
applicable during overtime hours.
- Overtime may be paid at one and one-half times a basic rate established by
the agreement for overtime-pay purposes, provided it is in accord with
- Employees of wholesale petroleum distributors may be paid one and one-half
times the statutory minimum rate for part of their overtime work.
Chances are, most of your employees will not fall into any of these groups,
and you will need to go about determining
their regular rates in accordance with the law.