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29 Dec 2015

When Must Employers Pay Overtime?

overtime pay laws vermont busy officeWhen it comes to overtime pay laws, requirements vary depending on the nature of federal and state laws. Most states have some law requiring that employers pay overtime at a rate of 50 percent of your base hourly wage. This payment is also known as “time and a half,” and applies to every hour worked over the established overtime threshold. While such laws are general guidelines, there are cases in which you may not be eligible for overtime payment even if you work overtime hours. If you are eligible for overtime pay, you are considered a non-exempt employee. If you are not eligible for overtime, you are considered an exempt employee.

Overtime Requirements

Most overtime laws, both state and federal, allow non-exempt employees to collect overtime pay for every hour worked above a 40 hour workweek. This type of overtime pay structure is known as the weekly standard. In California and several other states, a daily standard applies to all overtime requirements, meaning that non-exempt employees are given overtime pay for each hour they work above a standard eight-hour shift as well as each hour worked above a 40-hour work week. The daily standard is more generous with regard to overtime pay because it allows you to collect overtime pay for each hour you work over a standard shift, even if your total hours for the week are not close to the 40-hour threshold.

When Employers Are Required to Pay Overtime

While most employers choose to pay overtime, not all businesses are required to. Businesses that earn $500,000 or more annually are generally required to pay overtime, but some smaller businesses with employees who work between states are federally required to pay overtime as well. These employees are considered to be performing interstate commerce, which can involve physical travel or merely communicating across state lines for business purposes. If you handle goods from across state lines or make phone calls out of state, the overtime pay laws Vermont workers are protected under likely define you as an interstate commerce employee.

Contact an Attorney About Overtime Pay Laws

Vermont workers need to know overtime pay is a complicated matter that can make a significant difference in pay rate. If you would like more information on the overtime pay laws Vermont workers like you can benefit from, contact an attorney at Galanes Law today at (802) 698-8356.


Areas Served: Galanes Law serves clients in Vermont cities such as Bristol, Norwich, Brandon, Barre, Bennington, White River Junction, Castleton, Ludlow, Montpelier, Manchester, Middlebury, Brattleboro, Hartford, throughout Windham County, Windsor County and Orange County; and Hanover, Lebanon and Grafton County in New Hampshire.

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