In 1938, Congress passed the Fair Labor Standards Act, which would go on to become the foundation for the relationship between employers and employees that we still adhere to today. Perhaps the most well-known provision of this law pertains to work hours and how they could make an employee eligible to receive overtime pay. While many workers think they know when they should be able to receive this pay, they could be surprised to learn they aren’t actually eligible. To help you better understand what the FLSA says, here is just a brief overview of the laws regarding overtime.
Those who are paid a certain rate based on every hour they are on the clock are considered “hourly” employees. There are two different types of hourly workers: exempt, and non-exempt (more on that in a minute). According to the FLSA, all non-exempt hourly employees must be paid overtime equaling one and one-half times their normal rate of base pay for each hour they work beyond 40 hours in a week. In this case, a week is defined as a period of seven consecutive worked days.
Georgia does not have a daily overtime cap. While some states require employers to pay their workers overtime for each hour worked beyond a certain point each day (usually eight hours), Georgia has no such rule.
Salaried employees who work in executive, administrative, or other professional positions and are paid on a salary basis are exempt from FLSA overtime laws. Employers are not required to pay overtime wages for any hours worked beyond 40 in a week unless the terms in an employment agreement state otherwise (however, this is a unique, case-by-case basis).
Under the FLSA, several types of workers are actually exempt from requirements to be paid overtime when they reach 40 hours in a work week, regardless of whether they are an hourly or salaried worker. Here are a few of the surprising and yet common exemptions:
- Seasonal (part-time) amusement park employees
- Outside sales workers or IT professionals (who often make their own hours)
- Car, truck, plane, or railroad mechanics who don’t work in manufacturing
- Railroad or air carrier employees
- Domestic workers who live in their employer’s residence
- Movie theater employees