When is overtime requried to be paid?

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When is overtime requried to be paid?

I own golf equipment retail stores. Our managers get paid hourly receive health insurance paid by the company and end of year bonuses. Is the company obligated to pay them overtime if they work more than 40 hour within a week? If so, at what rate? Time and a half? Each manager is in charge of their own store and staff and inventory, does the scheduling and hiring. Each candidate hired needs to be approved by the main office.

Asked on April 11, 2012 under Employment Labor Law, Maryland

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

IF your managers were paid on a salary, not hourl,y basis, they might be exempt from overtime--to be exempt, an employer must both be paid on a salary basis and also meet one or more of the tests or criteria for exemption, the most relevant of which, your purposes, would be the "executive exemption" under the Fair Labor Standards Act (it potentially applies to any manager, not merely "executives). You  can find this exemption at the U.S. Department of Labor website, under "wages." If your managers otherwise meet it, if you change their compensation to annual salaries, you can avoid paying overtime.

Unfortunately, managers paid hourly must be paid overtime any time they work more than 40 hours in a workweek. All hours over 40 must be paid at time-and-a-half.


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