This webinar discusses calculating overtime under the FLSA rules for non-exempt employees. Includes definitions of overtime and calculation examples.
Calculating overtime pay for nonexempt employees sounds so simple. Common folklore says you simply count the hours the employee works beyond 40 hours a week. Then you multiply that by 1.5 times their hourly pay rate and you’re done, right? Not so fast. The truth is that overtime rules and the mathematics required to arrive at the correct calculation can be extremely tricky. Overtime under the Fair Labor Standards Act is based on a unique term, created in 1938, known as the regular rate of pay. And calculating the regular rate of pay is more complex than it appears. What’s included in the calculation? The reasonable cost of meals, lodging, nondiscretionary bonuses, commissions, on-call pay, shift differentials, cash benefit payments from Section 125 Cafeteria Plans, and the list goes on… And that’s just computing the regular rate – we haven’t even touched overtime yet! For example, when a bonus must be included in calculating the rate what overtime does it apply to? When the bonus is paid or when is the bonus earned? What if the bonus spans a long period, such as a quarter or full year?
Then what happens if you get it wrong? Nobody pays attention, do they? According to the Department of Labor, they collected more than $230 million in back wages for more than 190,000 workers in FY 2021 alone. Of that amount collected, $138 million was for back overtime.
Session Highlights:
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What is the definition of overtime under the FLSA-- it's not what most people think
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What is the Portal-to-portal and how does it affect overtime
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How to calculate the regular rate of pay
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Tracking hours worked and the use of rounding practices
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The eight narrowly construed exceptions to the inclusion of payments in the regular rate
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When you must include a bonus in calculating your employee’s overtime pay
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What is the overtime premium and how is it calculated?
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How to calculate overtime if a bonus covers more than one workweek
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Using the weighted average method to calculate overtime when and where it must be done
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When and how to use the“fluctuating workweek”
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When can the “alternate” method of calculating overtime be used
Why you should attend?
Penalties for overtime violations can be severe with the possibility of fines, imprisonment or both! Add civil suits to the mix and the results can be devastating to any business no matter how large or small! And just to make it interesting, most states use the same definition to calculate overtime as the FLSA does. So, one error can earn you double the penalties.
Who should attend?
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Payroll Executives/ Managers/ Administrators/Professionals/ Practitioners/ Entry Level Personnel
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Human Resources Executives/ Managers/Administrators
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Accounting Personnel
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Business Owners/ Executive Officers/ Operations and Departmental Managers
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Lawmakers
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Attorneys/ Legal Professionals
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Any individual or entity that must deal with the complexities and requirements of Payroll compliance issues
*You may ask your Question directly to our expert during the Q&A session.
** You can buy On-Demand and view it at your convenience.
Mark Schwartz
Mark Schwartz is an employment tax specialist and has over 15 years of employment tax experience as an independent consultant and as a payroll tax auditor with the State of California. He has managed an audit caseload of 20 ongoing audits, from small home-based businesses to large multi-national corporations. He is expert at defining regulatory and statutory requirements from local, State and Federal government agencies; and helping the average businessperson understand what that means to their business. He has processed weekly and bi-weekly payroll checks plus tax forms for businesses with hourly as well as exempt workers, multistate operations and a wide variety of benefits.
Mr. Schwartz provides consulting services encompassing payroll processing and payroll tax issues. These include payroll tax minimization, payroll tax compliance reviews, independent contractor studies, use of electronic transfers, deductions, benefits, etc. Mark has represented both clients and the State in front of the State Appeals Board. He understands the complexities of local wage laws, unemployment and disability claims, and other wage and benefit issues affecting your employees.
Mark prides himself on his outstanding customer service skills. He listens attentively to his clientele, helping them bridge the gap between the small business world and Government bureaucracy. He eagerly assists with clients needs and feels that educating clients toward faster, accurate and more complete payroll processes provide the most value.
Mark is a participating member of the American Payroll Association. He earned his BA and MBA in Finance at Santa Clara University. He has held Certified Internal Auditor and Certified Investment and Derivatives Auditor Credentials. Mark is currently pursuing a Certified Payroll Fundamentals Credential with the American Payroll Association.