You often put in extra hours to earn more money. But did you know that according to the Fair Labor Standards Act (FLSA), you are only entitled to overtime pay if you work over 40 hours per week?
Businesses sometimes use confusing terminology when it comes to overtime. This misunderstanding may make workers think they are earning extra cash when they are not.
How long is a workweek?
According to the FLSA, a full-time work week for hourly employees is 40 hours in seven consecutive days. The length of a pay period does not matter. In the eyes of the FLSA, a “workweek” resets every seven days.
Suppose you work additional hours in week one of your pay period but take a vacation in week two. Your employer must compensate you for overtime for week one. Because it is a different workweek, they cannot say you did not qualify for overtime due to your vacation.
What is gap time?
Companies can call labor hours whatever they like, so long as they follow the payment laws determined by the FLSA.
For example, if you work 8 hours per day, your boss may ask you to complete “overtime” for a 12 hour day. Because your supervisor used the word “overtime,” you may think you will earn extra. But unless you have already logged 40 hours for the workweek, you are not entitled to additional benefits. “Gap time” is the spare time worked under 40 hours. The FLSA does not require employers to pay time and a half for gap time.
Understanding the labor laws can help you make scheduling decisions that benefit your bank account and well-being.