Payroll Feature Spotlight: FLSA Overtime

12-20-2022

Let’s face it – while there are many reasons people choose to work for your business over a competitor, the most important thing that you can offer someone is a consistent paycheck. Making sure that paycheck is accurate each and every week is the magnum opus of a great payroll admin. Those who don’t deal with payroll every day may think that’s straightforward, but when it comes to overtime, things start getting complicated fast.

Remember when we used to think those “pesky word problems” in math class would never come up in real life? Well, here they are! Your math teacher would be so proud.

Susie is a home care worker who works for a franchise that has locations throughout the United States, but her location is based out of San Francisco, California. So far this week, she has worked 10 hours on Monday, 6 hours on Tuesday, 6 hours on Wednesday, 8 hours on Thursday, and 12 hours on Friday, for a total of 42 hours this week. If her standard rate of pay is $20 per hour, how much compensation is Susie owed for her work week?

  1. A) $840
  2. B) $860
  3. C) $880
  4. D) $900
Easy Peasy, Right?

If you surveyed a group of non-exempt employees about the definition of overtime, they would most likely tell you it kicks in for hours after an employee has worked 40 hours in a week. Ok – so that makes the math easy – all a payroll admin needs to do is multiply their current rate by 1.5 times their normal hourly rate and you’ll have what the employee should be making for time after 40 hours…right?

Not exactly. Just take one look at the DOL website and your state website, and you’ll see it’s just not that simple. Where the employee works, where the business is located, how many days the employee has worked already during the work week, the employee’s title/job function, and more all contribute to how employees are required by law to be compensated for overtime.

This gets tricky fast because the more employees you have, the more likely it is that your employees will be affected by overtime laws differently in different locations (think NY and California), and certain requirements may be missed. Making sure you’re on top of the different factors that apply to each employee is crucial in not only keeping employees happy but also staying on the right side of the law.

Less Effort for Better Results

There are two methods for staying in compliance with all applicable overtime laws. Method 1 – You can hire internal payroll experts to help keep you in compliance with all states and laws (nobody can afford to do this). Method 2 – You can partner with a proper payroll software to make it easy to stay compliant. All the payroll admin should need to do is correctly input an employee’s information and integrate the time clock software with the payroll software so the hours worked can be pulled automatically. This not only saves many hours each week of manually ensuring that the overtime rates are accurate but also reduces the likelihood of human error creating issues.

Back to the Word Problem

So, according to the FLSA, in our word problem from earlier, it seems as though Susie should be owed $860. But – like all good word problems – you would have to factor in the fact that Susie is an employee in California. (I know, the details always matter.) This changes the answer because California requires overtime to be paid for all hours over 8 per day. That means that there are actually 6 overtime-eligible hours, so Susie’s required compensation would be $900.

While we know this is a blog on FLSA overtime, keep in mind that FLSA overtime only governs federal regulation. Different states have different regulations surrounding overtime as well. Sorry for the curve ball.

The Devil Is in the Details

When it comes to overtime and the rules surrounding it, you should choose a payroll software that turns a cumbersome, manual task into something that is completed automatically, the right way, every time. That’s why at Viventium, our payroll software determines the correct overtime rate by considering the different federal and state regulations that govern each employee.

Viventium takes the number of hours worked for each day and week and automatically sorts them as standard hours or overtime hours. When payroll is processed, our software then determines the overtime pay rate for all overtime.

Don’t overwork yourself trying to get overtime right.

Relax, you’re with Viventium.

 


This information is for educational purposes only, and not to provide specific legal advice. This may not reflect the most recent developments in the law and may not be applicable to a particular situation or jurisdiction.

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Overtime Shuffle - Lyrics

Overtime, oh, it’s a complicated game, Different rules in every state, it’s never the same, Multiply by 1.5, but there’s more to see, In this overtime equation, it’s not that easy, you see.

VERSE 1
In the world of work, there’s a tale to be told, About overtime hours, and the payroll gold, A consistent paycheck, that’s the worker’s dream, But when it comes to overtime, it’s not as easy as it seems.

PRE-CHORUS
Oh, Susie worked hard in San Francisco town, But the rules around overtime, they had her feeling down, 42 hours this week, she gave her all, Now it’s time to calculate, let the numbers fall.

CHORUS
Overtime, oh, it’s a complicated game, Different rules in every state, it’s never the same, Multiply by 1.5, but there’s more to see, In this overtime equation, it’s not that easy, you see.

VERSE 2
Exempt or non-exempt, the title they hold, Where they work, where you’re based, it’s all in the fold, California or New York, the laws they diverge, For payroll admins, it’s a never-ending surge.

PRE-CHORUS
Oh, the DOL’s website, a labyrinth to explore, State regulations galore, it’s quite a chore, Staying compliant, it’s a tricky art, Missing out on requirements can break your heart.

CHORUS
Overtime, oh, it’s a complicated game, Different rules in every state, it’s never the same, Multiply by 1.5, but there’s more to see, In this overtime equation, it’s not that easy, you see.

BRIDGE
But here’s a method that can save the day, A payroll software, to keep errors at bay, Input the info right, integrate with ease, No more manual labor, no more overtime fees.

VERSE 3
Back to Susie’s story, she’s owed her due, According to FLSA, it seems we have a clue, $860 on the table, that’s what we’d say, But California’s got its rules, changing the way.

PRE-CHORUS
Oh, California says, hours past eight, Are overtime-eligible, don’t underestimate, Now Susie’s owed $900, that’s the decree, In this overtime puzzle, you gotta set it free.

CHORUS
Overtime, oh, it’s a complicated game, Different rules in every state, it’s never the same, Multiply by 1.5, but there’s more to see, In this overtime equation, it’s not that easy, you see.

OUTRO
So when it’s overtime, and the rules entwine, Choose a payroll software, let it all align, Viventium’s the name, we’ve got the key, To make overtime calculations a breeze, you’ll see.

ENDING
Don’t overwork yourself, don’t you fret, With Viventium by your side, it’s a safe bet, Relax, you’re with us, in this overtime fight, With the right tools in hand, everything’s gonna be alright.

Retroactive Rhythms

Take back time, like a winding clock, Retroactive pay, mending every block. Calculate the hours, with precision and grace, In the world of care, in this payroll space.

VERSE 1
In the world of care, where time slips away, Caregivers dedicate, every single day. But when the hours are missed, in the daily race, Retroactive pay, steps up to embrace.

PRE-CHORUS
A caregiver tired, at the week’s end, Forgot to log hours, a mistake to mend. Admins face the challenge, calculations to make, To set it right, for the caregiver’s sake.

CHORUS
Take back time, like a winding clock, Retroactive pay, mending every block. Calculate the hours, with precision and grace, In the world of care, in this payroll space.

VERSE 2
Manual calculations, prone to a flaw, Dealing with shifts, odd hours, and the law. As your business grows, the cost takes flight, Automated solutions, shining bright.

PRE-CHORUS
Compliance is key, with FLSA’s might, Calculate and compensate, get it right. Avoid the audit’s gaze, fines and the cost, Retroactive pay, no longer lost.

CHORUS
Take back time, like a winding clock, Retroactive pay, mending every block. Calculate the hours, with precision and grace, In the world of care, in this payroll space.

BRIDGE
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VERSE 3
Star caregivers, valued and strong, Retention and recruiting, where they belong. Automated solution, a total pay dance, Establish your business, a work-life romance.

PRE-CHORUS
A self-winding watch, Viventium’s grace, Optimizing payroll, in every case. No more struggles, in the payroll game, In it with you, time and time again.

CHORUS
Take back time, like a winding clock, Retroactive pay, mending every block. Calculate the hours, with precision and grace, In the world of care, in this payroll space.

OUTRO
As your business grows, in the hustle and fight, Viventium by your side, making it right. No more worries, in the payroll chain, In it with you, time and time again.

In the Arms of Geo Tax - Lyrics

Geo Tax, oh Geo Tax, our savior in the night, Guiding us through tax laws, shining a bright light. No more payroll worries, no more sleepless nights, With Viventium’s help, we’ll be alright.

VERSE 1
In the world of business, we all aim to thrive, Year after year, our dreams taking flight. But as we soar higher, we start to see, More money, more problems, just like B.I.G. Outgrowing our shell, it’s an exciting phase, But it brings with it some challenging days. Solutions we had, now show their flaws, As we push the boundaries, breaking through the walls.

CHORUS
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VERSE 2
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CHORUS
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BRIDGE
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VERSE 3
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CHORUS
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OUTRO
So relax, dear business, and set your mind free, With Geo Tax on our side, we’re the best that we can be. Viventium’s got us, in this tax-filled fight, No more worries, no more sleepless nights.

REPEAT CHORUS
Geo Tax, oh Geo Tax, our savior in the night, Guiding us through tax laws, shining a bright light. No more payroll worries, no more sleepless nights, With Viventium’s help, we’ll be alright.

Payroll Grid Serenade - Lyrics

Configurable Payroll Grids, a helping hand in sight, In the realm of admin life, where details are rife. With custom views and filters, they navigate through the night, Let’s celebrate this feature, it’s the heart of our work life.

VERSE 1
In the world of admin tasks, where changes often arise, There’s a tool that’s been a savior, under office fluorescent skies. With flexibility and precision, it eases their daily strife, Let’s sing about this feature, it’s the pulse of our work life.

CHORUS
Configurable Payroll Grids, a helping hand in sight, In the realm of admin life, where details are rife. With custom views and filters, they navigate through the night, Let’s celebrate this feature, it’s the heart of our work life.

VERSE 2
Admins wear many hats, in their daily grind, Sometimes they need to adjust, leave no errors behind. Adding extra hours, bonuses, or fixing pay, They need a simple method, to make it all okay.

CHORUS
Configurable Payroll Grids, a helping hand in sight, In the realm of admin life, where details are rife. With custom views and filters, they navigate through the night, Let’s celebrate this feature, it’s the heart of our work life.

BRIDGE
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VERSE 3
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CHORUS
Configurable Payroll Grids, a helping hand in sight, In the realm of admin life, where details are rife. With custom views and filters, they navigate through the night, Let’s celebrate this feature, it’s the heart of our work life.

OUTRO
So here’s to Payroll Grids, in our song of praise they gleam, For admins working diligently, they fulfill a dream. In the world of office hustle, they bring much-needed light, Let’s tip our hats to this tool, and its invaluable might.

Automation Anthem - Lyrics

Rule-Based Automation, it’s the name of the game, Less manual toil, less stress and shame, With policies and standards, we’ll pave the way, To automate your chores and brighten your day.

VERSE 1
In the world of payroll, a daily task we face, Admins work hard, in this complex space, They handle policies, with attention and care, But there’s a solution that’s beyond compare.

PRE-CHORUS
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CHORUS
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VERSE 2
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PRE-CHORUS
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CHORUS
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BRIDGE
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VERSE 3
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PRE-CHORUS
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CHORUS
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OUTRO
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The Data Groove - Lyrics

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VERSE 1
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PRE-CHORUS
Gather your data, don’t let it fade, In the depths of spreadsheets, don’t let it cascade. Your HCM software, is it up to the task? To capture and store, to help you unmask.

CHORUS
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VERSE 2
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PRE-CHORUS
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CHORUS
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BRIDGE
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CHORUS
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OUTRO
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