Overtime pay is a must-know topic for small business owners. You have to pay overtime to ensure a fair work environment, but also because of federal overtime laws. Overtime pay is additional compensation employees get when they work more than the standard 40 hours per week.
Failing to compensate employees for their overtime work can lead to legal repercussions, including expensive lawsuits and penalties. Let’s look at how overtime compensation works, who’s exempt from it, and the importance of an overtime policy.