Overtime pay

“ Under the Fair Labor Standards Act, many American workers are legally entitled to overtime pay when they work more than 40 hours per week. But the Act contains several exceptions, including an exception for employees who work in a “bona fide executive ... capacity.” 29 U. S. C. §213 (a) (1) . To determine whether an employee works in a bona fide executive capacity, the Department of Labor’s implementing regulations look to, among other things, (i) the employee’s duties, (ii) how much the employee is paid, and (iii) how the employee is paid—for example, by salary, wage, commission, or bonus. ”

“ The question here is whether a high-earning employee is compensated on a “salary basis” when his paycheck is based solely on a daily rate—so that he receives a certain amount if he works one day in a week, twice as much for two days, three times as much for three, and so on. We hold that such an employee is not paid on a salary basis, and thus is entitled to overtime pay. ”

“ This week, I ordered a review of our nation’s overtime rules, to give more Americans the chance to earn the overtime pay they’ve worked for.
Here’s why this matters. Our businesses have created 8.7 million new jobs over the past four years. But in many ways, the trends that have battered the middle class for decades have grown even starker. While those at the top are doing better than ever, average wages have barely budged. Too many Americans are working harder than ever just to keep up. ”

“ Here there is a specific provision-Section 205 of the Federal Employees Pay Act of 1945 [8] which fixes the ratio of overtime pay to the employees' basic pay. Congress has thus explicitly prescribed that overtime pay should be fixed in a uniform manner for all government wage-board employees, whether seamen or not. Furthermore, in determining the applicability of this uniform statutory requirement, the court will be interpreting the pay regulation of an executive department. This task is typically within the province and expertise of the Court of Claims. ”

“ Extra pay by contract because of longer hours than the standard fixed by the contract for the day or week has the same purpose as statutory excess compensation and must likewise be excluded. [22] Under the definition, a mere higher rate paid as a job differential or as a shift differential, or for Sunday or holiday work, is not an overtime premium. It is immaterial in determining the character of the extra pay that an employee actually has worked at a lower rate earlier in the workweek prior to the receipt of the higher rate. ”

“ The proviso of Section 5 does not give the Collector of Customs authority to make assignments which deprive inspectors of this Sunday and holiday pay. It authorizes adjustments of hours but specifically forbids alteration of overtime pay. It is silent as to Sundays and holidays which leaves the earlier grant of extra compensation for those days in effect. Overtime pay is also applicable to Sundays and holidays when inspectors work longer than nine hours with one hour for food and rest. The rate of overtime extra compensation on Sundays and holidays is the same as the rate for weekdays. ”

“ In order to avoid a similar double payment, we think that any overtime premium paid, even if for work during the first forty hours of the workweek, may be credited against any obligation to pay statutory excess compensation. ”

“ Congress might have sought its objective of clearing the channel of commerce of the obstacles of burdensome labor disputes by minimum wage legislation only. We have seen that it added overtime pay. The wages for minimum pay are expressed in terms of so much an hour. ”

“ He could hardly have intended in § 69 to employ the statutory maximum hours as synonymous with regular working hours as there is no prohibition on regular working hours that are longer than the statutory maximum. His illustrations, numbers 2 and 3, show that overtime premiums may be earned within the first 40 hours of a workweek. The statutory maximum hours are significant only as requiring overtime premium pay. An employer may increase pay or decrease hours free as to those steps from statutory regulation. ”

“ Long hours may impede the free interstate flow of commodities by creating friction between production areas with different length workweeks, by offering opportunities for unfair competition through undue extension of hours, and by inducing labor discontent apt to lead to interference with commerce through interruption of work. Overtime pay probably will not solve all problems of overtime work, but Congress may properly use it to lessen the irritations. ”

“ Overtime violations occurred because the employer did not pay the non exempt hourly employees for all hours in excess of 40 hours per week at time and an half. Employees only received a fixed salary for all hours worked. ”

“ And so the union has sought and achieved an addition to the basic-the regular-rate sufficiently high to deter employers from assigning work outside of defined periods, except in emergencies. Since 1916, when the International Longshoremens Association made its first collective agreement with waterfront employers in New York, a 50% premium on night and weekend work has generally prevailed. In the industry, this has been colloquially called 'overtime' pay.
Longshoremen do not usually work continuously for one employer, but shift from one to another, wherever employment can be found. ”

“ Under §604, some executives who make less than $100,000 per year are likewise not entitled to overtime pay if they are guaranteed at least $455 per week that they work and at least two-thirds of their total compensation comes in the form of a weekly guarantee. ”

“ Nor do we find the District Court's reliance upon the fact that the overtime rates were employed in order to concentrate the work of the longshoremen in the straight time hours relevant to a determination of the respondents' rate of pay. The District Court thought the concentration was significant. It did not test whether the contract overtime rates contained overtime premium payments by considering whether the employee actually received extra compensation for excess hours. ”

“ The vast majority of our employers will be fair to their workers under any system. But as we modernize our laws to fit a changing workplace we have to uphold historic safeguards for all our employees. Giving workers the real choice of taking time off as overtime pay is good for our families. It will help all Americans balance the demands of home and work. But it's employees and their families, not employers, who should choose if, when and how they take and use comp time. ”

“ At present it is commonly the case that in order to obtain an adequate wage the worker works overtime, and presses to have overtime work, because the rate of pay for overtime is higher, and that during the normal hours of work he does less. ”

“ The employment contract calls for an overtime premium for work beyond thirty-six hours. Such extra pay should not be included as weekly wages in any computation of the regular rate at which a man works. [24] (2) A contract provides for payment of time and a half for work in excess of eight hours in a single workday. An employee who works five ten-hour days would have no claim for statutory excess compensation if paid the amount due by the contract. ”

“ Overtime may be permitted by inspectors on twenty-eight days a year, but overtime pay must be not less than 6d. an hour extra. The factory-owners who send work out have to make complete returns thereof. ”

“ Moreover, except for the fact that the payment has been deferred, such payments are as much a part of the employees' regular basic compensation as overtime pay or the payment of salary while the employee is absent on vacation. If in the end the employee elects to receive additional compensation instead of a paid vacation, he or she is receiving the same kind of premium pay that is available for holiday or weekend work. ”

“ Of course, even if most of the work of longshoremen was performed during 'straight time' hours, if the 50% increment for work at other times was not a true overtime payment, but a shift differential, this higher rate of pay would have to be taken into account in establishing the 'regular rate' of the respondents. ”

“ TO Miss VIOLET WALLACE Parkstone, Dorset. May 10, 1891.
My dear Violet,— ... I am quite in favour of a legal eight hours' day. Overtime need not be forbidden, but every man who works overtime should have a legal claim to double wages for the extra hours. That would make it cheaper for the master to employ two sets of men working each eight hours when they had long jobs requiring them, while for the necessities of finishing contracts, etc., they could well afford to pay double for the extra hours. ”

“ The pay days must be spaced at intervals of two weeks or longer. If the pay period is set at two weeks and the employee is required to work overtime during the first week, he is given sufficient time off during the second week to keep his paycheck at a constant level. In our view this counter-proposal far exceeds in technicality the plan adopted by respondent. Moreover its operation is to provide a ceiling but not a floor for the wage. Since the pay is by the hour and there is no guaranty, in a pay period in which an employee works few hours, his wage may fall far below the level aimed at. ”

“ Any overtime pay for such services shall be disregarded in calculating any annual limit on the amount of overtime pay payable in a calendar or fiscal year. (c) With regard to such services, any pay that is disregarded under either subsection (a) or (b) shall be disregarded in calculating such employee’s aggregate pay for purposes of the limitation in section 5307 of such title 5. ”

“ Petitioner renews here its contentions that the private right to contract for a fixed weekly wage with employees in commerce is restricted only by the requirement that the wages paid should comply with the minimum wage schedule of the Fair Labor Standards Act, section 6, 29 U.S.C.A. § 206, with overtime pay at time and a half that minimum, that in any event the Act does not preclude lump sum salaries in excess of the minimum, and that a contrary interpretation of the statute would render it unconstitutional. ”

“ It could actually leave working families worse off than today. Strong comp time legislation gives employees the choice of when to take their overtime pay in money or in time off from work. But under the congressional majority's proposal, employees aren't really guaranteed that choice. There are no effective safeguards to stop an employer from telling an employee who needs a paycheck more than family time that he or she has no choice—you work overtime this week, then I'll give you less time next week. ”

“ Furthermore, in determining whether he has met the overtime requirements of section 7 the employer may properly consider as overtime compensation paid by him for the purpose of satisfying these requirements, only the extra amount of compensation-over and above straight time-paid by him as compensation for overtime work that is, for hours worked outside the normal or regular working hours-regardless of whether he is required to pay such compensation by a union or other agreement.' Interpretative Bulletin No. ”

“ The issues brought to this Court by this proceeding arise from a controversy concerning overtime pay and liquidated damages under the Fair Labor Standards Act of 1938, 29 U.S.C.A. § 201 et seq. Under Section 7 (a) , the employer is required to pay for excess hours of work not less than one and one-half times the regular rate. [1] An employer who violates this subsection is liable to his injured employees in the amount due and unpaid and in an additional equal amount as liquidated damages. ”

“ The Fair Labor Standards Act of 1938 enacted a comprehensive scheme providing for minimum wages and overtime pay for workers 'engaged in' or 'in the production of goods for' interstate and foreign commerce. ”

“ It calls for 150% of the regular, not the minimum, wage. By this requirement, although overtime was not flatly prohibited, financial pressure was applied to spread employment to avoid the extra wage and workers were assured additional pay to compensate them for the burden of a workweek beyond the hours fixed in the act. In a period of widespread unemployment and small profits, the economy inherent in avoiding extra pay was expected to have an appreciable effect in the distribution of available work. ”

“ Certain it is that the Comptroller General never ruled that the standard of 40 hours a week with overtime could be disregarded in practice.
Finally, the Government argues that related legislation indicats Congress did not intend § 23 to apply to employes paid by the month or by the year. We think, however, that, on analysis, the course of legislation, considered as a whole, fails to sustain the contention. As we have said, adoption of the principle of limitation of working time and extra pay for overtime, in respect of Government employment, has been of gradual development. ”

“ Finally the Government urges that in awarding compensation for 'overtime' services credit should be allowed to it for that part of the base pay received for such services. We think the Congressional intention to give extra compensation precludes such a claim. The inspectors in addition to their regular salaries for week days are entitled to the statutory additional pay for overtime, sundays and holdays. ”

“ He will perform the allotted task, but extra pay is no inducement for him to work overtime. The only consideration that will move him to do extra work is the promise that the overtime will be credited on another day in order to give him an extra holiday. ”