Are You FLSA Compliant? Overtime Pay

VHCA (3/15/07)

In accordance with the Fair Labor Standards Act, hourly employees - "nonexempt employees" - must be paid at least time and one half their "regular rate" of pay for all hours worked over 40 in a workweek.  It is important to note that the "regular rate" includes an employee's hourly rate plus the value of some other types of compensation including bonuses and shift differentials.  A common error in calculating overtime pay by many health care employers is that they often do not include all applicable types of compensation when calculating the regular rate of pay.  To learn more about calculating overtime pay, please view the U.S. Department of Labor's fact sheet on the topic on the Department of Labor's website.