Is there some sort of law about the hourly wage for overtime hours for salary employees in GA? My employer has recently advised me that GA has passed a law requiring that salary employees are not paid time + 1/2 for overtime hours. This has been going on for about 3 weeks and each weeks' paycheck has a different hourly wage for the overtime hours worked. Is there some way that overtime is being calculated based on the amount of overtime hours?
Confused In GA
cbg
04-13-2007, 10:43 AM
"Salaried" and "exempt" are not synonymous. Exempt employees have NEVER had to be paid overtime in any state. That's what being exempt means; being exempt from overtime regulations.
However, FEDERAL law requires that with rare exceptions, non-exempt employees, whether paid on salary or not, MUST be paid overtime for any hours after 40. A state can pass a law that is more favorable to employees than that, but cannot pass one that is less favorable. Even if GA, or some other state, were to pass a law that salaried non-exempt employees did not have to be paid time and a half for overtime hours, Federal law would still require that they were.
Pattymd
04-13-2007, 10:44 AM
Georgia does not have any overtime laws of its own; it defers to the FLSA.
If you are nonexempt, being paid on a salaried basis, under the fluctuating workweek method, the way you are being paid sounds correct.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_778/29CFR778.114.htm
bea2123
04-13-2007, 11:06 AM
Ok, help me understand. I was making time + 1/2 up until 3 weeks ago now I am making a range from $5.75/hour to $7.60/hour for overtime meaning after my 40 hours which is what my salary is based on. So, how is the overtime wage being calculated? Based on hours of overtime? I know there hasn't been a new law passed in the last month is the change only because he discovered this 'law'? My hourly wage broken down from my $30K salary based on a 40 hour workweek is $14.50. My employer can legally pay me $5.75/hour for the 20 hours of overtime I made this week?
cbg
04-13-2007, 11:38 AM
Bea, please keep all related questions in the same thread. I have restored your deleted post and deleted the separate thread for the additional question. This keeps all the information in one place and makes it much easier for the responders.
Thanks.
DAW
04-13-2007, 12:17 PM
The federal rules on overtime have not changed in a long time. Basically:
- Each workweek stands alone. It is a 168 hour period which is normally the same each and every week without change. The workweek is unrelated to shifts or schedules. It is legally possible for the employer to have different workweeks for different employees but this is mechanically difficult to implement. Most employers use exactly the same workweek for all employees working in the same facility.
- The employer is required to track all hours worked during the work week. Hours worked means hours worked, not paid time off such as vacation, sick, PTO.
- Prior to the OT calcuation, the employer is supposed to calculate all compensation based on hours worked, and divide this by actual hours worked. The result is something called the "regular rate of pay".
- The employer is required to an overtime premium of at least 50% of that workweek's regular rate of pay for all hours worked in that workweek.
- Some states (not GA) have daily overtime rules, but these rules are in addition to the federal rules, not instead of.
Pattymd
04-14-2007, 05:13 AM
Did you look at what I posted about a "fluctutating workweek" pay method for salaried nonexempt employees?
You say your salary is intended to cover 40 hours worked per week and I'm assuming you agreed to this. DOES your workweek fluctuate regularly below and above 40 hours due to business requirements (NOT just plain old overtime)?
ArmyRetCW3
04-14-2007, 10:20 PM
It appears you are being paid, as mentioned above, using the fluctuating workweek method under 29 CFR 778.118. You may think your salary is meant to cover 40 hrs, however that actions of your employer clearly shows that your salary is not for 40 hrs. Instead is for all hrs. And yes your statement that your employer is paying overtime at between $5.75-$7.60 per overtime hrs is correct.
The correct formula to determine your overtime rate is :
Yearly Salary ÷ 52 weeks = Weekly salary ÷ All weekly worked hrs = regular rate ÷ 2 (½ time or .5) = ½ time overtime rate x overtime hrs= overtime due…
Sample:
$30,000 Yr Salary
÷ 52 # of weeks
=====
$576.92 Weekly Salary
÷ 60 Weekly hrs
=====
$ 9.61 Regular rate (Hourly rate)
÷ 2 ½ time
========
$ 4.80 ½ time overtime rate
X 20 overtime hrs
======
$ 96.10 Overtime due
+$576.92 Weekly salary
======
$673.02 Total wages due
Every week you work different overtime hrs the overtime rate will change accordingly.
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