Following the Fair Labor Standards Act

In the past two years Wal-Mart has had close to 80 wage and hour law suits against them. In California alone, the payout has totaled around $172 million. For more statistics and incorrect procedures of overtime compensation check out the BusinessWeek cover article "Wage Wars" in the October 1st, 2007 issue.

BusinessWeek Wage Wars

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The overtime regulations of the FLSA have been around since the late 1930s; it was enacted to encourage employers to hire more workers rather then having fewer workers work harder. For every hour worked over 40 hours in a work week the employee is awarded time and a half their regular hourly rate, which must be at least the federal minimum wage, or their state's minimum wage whichever is higher.

There are, of course, restrictions and exemptions. For a list of federal exemptions check out the US Department of Labor's website.

FLSA Restrictions/Exemptions

There are many requirements set forth by the US Department of Labor, some favor the employer and others the employee. Some general requirements/exceptions:

There is no limit on the total number of hours
worked by an individual over the age of 16. The
employee must be given the proper compensation.

There is no required premium of payment for
weekends, holidays, or other observed days of rest.

Overtime must be paid on the date all other
payment for that workweek is due. Some exceptions do apply.

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