Did you know? Only hours actually worked count toward overtime when determining if employees are owed time and a half for hours over 40 in a workweek.

For instance, if Monday (Labor Day) was a paid holiday observed by the company – meaning no one worked and everyone got paid – a non-exempt employee could still work a full 40 hours in that workweek without being in overtime territory (barring any daily overtime that might be applicable). In the case of a paid 8-hour holiday and 40 hours of work, the employee would receive 48 hours of straight time; the breakdown of holiday pay and regular pay should be reflected on their paystub to avoid confusion and fend off future wage claims.

The same applies to vacation time, sick time, and other non-working leaves – the overtime premium only applies if more than 40 hours of real work are done.

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Disclaimer: This information is provided as a self-help tool and does not constitute legal or financial advice. Laws and regulations change often, and decisions as to whether or how to use this information and/or what actions to take are solely those of the viewer. The providers of this information disclaim any and all responsibility and liability for its accuracy, completeness or fitness for your particular business purposes.

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