Establishing a compensation rate is a standard part of employment negotiations. Workers may receive pay on an hourly or salary basis. In some cases, they may have a right to supplemental overtime pay. Direct-hire employees in Indiana may receive 150% of their standard hourly wages in qualifying circumstances.
What are the requirements for overtime pay eligibility?
Working more than 40 hours
Overtime pay obligations begin once a worker has performed more than 40 hours per workweek. Employers can choose when the workweek starts and ends, but it should be consistent from one week to the next. Workers must show that they put in more than 40 hours to be eligible for overtime pay.
Receiving hourly pay or a low salary
All hourly employees are theoretically eligible for overtime pay. Regardless of what they make per hour, they should receive 150% of that rate for any time worked past the 40th hour.
The rules are different for those who receive a salary. They must receive a low salary to be eligible for overtime wages. Currently, the federal threshold for a non-exempt salary is $684 each week or an annual salary of $35,568.
Anyone earning less than that may be entitled to overtime wages. Even when employers have policies limiting overtime availability, they have an obligation to pay hourly and non-exempt workers if they work overtime. The failure to do so is a violation of federal and state employment laws.
When employers refuse to uphold overtime wage laws, workers may have the option of filing a wage and hour lawsuit. Documenting time worked and consulting with a lawyer can help employees pursue the overtime wages that they deserve.
