Overtime

See also Overtime (sport).

Overtime is amount of time an employee works beyond what is considered normal or reasonable by society. Most nations have overtime laws designed to prevent and/or dissuade employers from working their employees excessively. These laws vary greatly from country to country.

U.S. Overtime Law

In the United States, the Fair Labor Standards Act of 1938 establishes a standard work week of 40 hours, and mandates payment for overtime hours of one and one-half times the worker's normal rate of pay for any time worked above 40 hours. Certain classes of administrative, professional, and managerial workers are exempt from the regulation. Out of approximately 120 million American workers, nearly 50 million are exempt from overtime laws (U.S Department of Labor, Wage and Hour Division, 1998). As a result, Americans rank near the top for the average number of hours worker per year (1,979) comapared to other advanced capitalist nations. [http://www.ilo.org/public/english/employment/strat/kilm/kilm06.htm (International Labor Organization, Table 6b).

On August 23, 2004, the overtime laws were overhauled by President George W. Bush and the Department of Labor. The changes to the law, pushed for by large retailers and other business interests, were controversial. According to one study, the changes to the law could have significant impact on the number of workers covered by overtime laws and exempt several million more workers.(Economic Policy Institute). The Bush administration maintained that the impact would be minimal and would help clarify an out-dated regulation.

References

• U.S Department of Labor, Wage and Hour Division, Minimum Wage and Overtime Hours Under the Fair Labor Standards Atc: 1998 Report to the Congress Required by Section 4(d)(1) of the Fairl Labor Standards Act, tab. 2 at 14 (1998).