ZIGARELLI CAN THEY DO THAT Employee Hours and Overtime Pay

ZIGARELLI CAN THEY DO THAT Employee Hours and Overtime Pay...

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READING 7 ZIGARELLI: CAN THEY DO THAT?: Employee Hours and Overtime Pay Jeanne read the memo with disbelief. "Owing to increased foreign competition, we regret that we have no choice but to implement a mandatory overtime policy for all exempt employees beginning next week. Please be as flexible and as understanding as possible in our time of crisis." Foreign competition? she thought. What a pathetic excuse! The company bad been finding new ways to squeeze extra work out of people for years now. More work for the same pay just didn't seem fair. Everyone's familiar with working overtime. Forty-five-hour weeks, fifty-hour weeks, seventy-hour weeks! Sometimes it seems (and, in fact, the statistics show) that we're working more hours than we have in decades. Surely there must be some law that regulates how much we can be required to work. Federal Law The Fair Labor Standards Act (FLSA) addresses some of these concerns. However, it's important to note that except for a few jobs like truck driver and airline pilot, there's no legal limit on the number of hours your employer can demand of you. Sound oppressive? Feel like you've just been transported back to the 1920s? In the 1990s there is one saving grace: when you work overtime, you may be entitled to overtime pay. It's common knowledge that overtime pay is equal to one-and-a-half times your regular hourly rate of pay. What's not common knowledge is who's eligible for such a premium. Most blue-collar employees are covered by the FLSA (and therefore entitled to overtime pay), whereas most white- collar employees are not. The critical number dividing regular work time from overtime is forty hours work in any given work week. Beyond that, blue-collar employees receive time-and-a-half for each hour worked. If your hourly rate is consistent each week, say $10.00 per hour, the computation is simple. If you worked fifty hours in a week, ten of those hours were overtime hours. Your employer must compensate you at a rate of $15.00 per hour ($10.00 times one-and-a-half) for each of those ten hours. For those whose hourly rate varies (for example, those on piece rate or a commission), a "regular rate" of pay is usually calculated as: all payment for that week minus "exclusions" number of hours actually worked that week Therefore, to compute your regular rate, you take your pay for the week, subtract what are called
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This note was uploaded on 02/26/2012 for the course MGMT 3680 taught by Professor Harrywater during the Winter '12 term at CSU East Bay.

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ZIGARELLI CAN THEY DO THAT Employee Hours and Overtime Pay...

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