Written by Reed Tinsley |
June 25, 2008
You must pay 1.5 times an employee’s regular pay rate for each hour worked over 40 in the workweek (any 168 consecutive hours). Employers can structure the workweek (e.g., starting Sunday at 9 a.m. for 10 hours a day, 4 days a week). Employees cannot waive overtime. You need not count for overtime purposes paid nonwork hours (vacation, holidays, sick days, jury duty, etc.). You may give time off in lieu of overtime only in the same workweek. Hospitals have exceptions under the 8/80 rule. Always check state laws.
About the Author
Reed Tinsley CPA
This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on
accounting & tax,
practice management, and
financial planning.
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