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Calculate Overtime After 40 Hours and Not After 80

calcuate overtime after 40 hours in a workweekI have heard this question asked countless times over the years:

“Why does your time tracking system only calculate overtime after 40 hours and not after 80 hours?”

The answer is, because that is how it’s defined in the FLSA. Many business owners don’t realize this but they must calculate overtime after 40 hours and within one workweek, not after 80 hours within two. In other words, it’s not our design, it’s the law for most cases in the US.

From the FLSA:

“Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. ”

In general, full and part time hourly employees are not exempt. If you are not sure if your employee qualifies for overtime exemptions, check here.

Want a system that automatically calculates overtime after 40 hours correctly?

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