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What is the compensation structure for overtime, holidays, and regular hours?

The following is the distinction between regular, overtime, and holiday pay:

  1. Regular compensation — When labor is completed, a non-exempt employee’s regular rate of pay must not be less than the highest federal minimum wage, state minimum wage, or local minimum wage in effect.
  2. Overtime compensation – Overtime pay is 1.5 times the employee’s regular rate of pay for each hour worked over 40 in a workweek, according to the FLSA. States may have their own overtime requirements that employers must adhere to.
  3. Holiday pay — While it is not required by law, some firms will offer their employees paid time off or pay them higher rates for hours spent on holidays.
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