Unlike a few years ago when the standard hours for full time were considered 40 hours per week, things have now changed and full time hours vary from sector to sector, and from company to company. In spite of this change, hours and wage laws are still as adamant and organizations are still as keen, if not more keen on adhering to these laws through improved time tracking methods, such as time tracking software and employee attendance software.
Below is some vital information regarding what is now considered full time employment, overtime pay requirements, and so on:
First and foremost, there is no universal definition for full time employment. This means that individual organizations are free to set standards for their employees. Such organizations will specify their hours in their employee handbook.
All in all, full time employment in the U.S generally ranges from 35 to 45 hours, with 40 being the most common standard.
In spite of this, it is not uncommon to find companies that regard 50 hours as full time for exempt workers. In other cases, companies do not set a standard schedule; they simply go with any number of hours that get the job done at the end of the week. It is therefore important for employees to make sure they understand the policy of a company in regards to full time hours before accepting a job offer.
In spite of this, there are some exceptions where the state can set the maximum number of hours for full time employment for specific occupations such as healthcare. Such occupations or industries are required by the law to fall at or below those maximums or risk non-compliance. Employee attendance software such as punch clock software are quite popular in such organizations as they are very effective at time tracking in terms of employee arrival, departure, breaks and so on. In short employee attendance software makes it possible for these organizations to easily adhere to such laws.
In addition to this, organizations that use punch clock software find it easy to hold their employees accountable for keeping time and shift adherence.
Most employers are obligated by the state law to pay overtime to some of their workers. The premium for overtime in most cases is half the usual hourly rate, which means employees are entitled to the usual hourly rate plus a 50% overtime premium for every overtime hour. Most employers find the overtime premium rate quite high and prefer steering clear of overtime by investing in the most technologically advanced time tracking software.
However, not all workers are entitled to overtime. The right to earn overtime depends on a number of factors including state laws; the number of hours worked, and job duties. In the same way, though the majority of employers are required to pay overtime, not all employers fall under this category.
All employers who are covered by the FLSA (federal fair labor standards act) must pay overtime. Generally, a business that makes over $500,000 in annual sales falls under the FLSA and must adhere to overtime laws.
Also, a business that operates between states is also required to pay overtime regardless of its size.
Employees who are not entitled to overtime
Employees who don’t qualify for overtime pay include, but are not limited, to the following:
- independent contractors
- administrative, executive, and professional workers who get paid on a salary basis (an employee who qualifies as a salaried employee must earn at least $445 weekly and must receive the same salary every week without considering the number of hours worked, or the quantity and quality of work accomplished within the week)
- volunteer workers
- outside salespersons
- some computer specialists, especially those that earn $27.63 and above per hour
- newspaper deliverers
- men and women at sea
- workers who work in small farms
- some switch board operators
- criminal investigators
All in all, the U.S Department of Labor regulates overtime laws according to the number of hours worked, and pay rate. The FLSA demands that employers pay overtime to employees who exceed 40 hours of work per week.
Overtime can successively be monitored through a numbers of ways including computer logins, manager observation, and time tracking software. Digitalized time clocks are the most popular and practical method of monitoring overtime because the clocks keep track of each and every minute an employee stays clocked in. This way, all hours that go beyond the normal working hours automatically count as overtime.