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Working Hours in Netherlands

How Overtime Works

Overtime is calculated based on the “workweek” which is a regularly occurring period of seven days. It could begin on any day or hour your employer chooses as long as it remains the same each week. The answer depends on the number of hours you worked during the workweek. If it’s more than 40 hours in the workweek, you should get overtime pay.

The calculation method varies depending on if the bonus or commission payment is allocated by the workweek or some other frequency, e.g., monthly, quarterly, annually. To make matters even more complex, businesses must comply with not only the FLSA, but also the wage and hour laws in state and local jurisdictions. When these regulations differ, employers have to apply the overtime pay rate that is most favorable to the employee. Overtime refers to any hours worked by an employee that exceed their normally scheduled working hours. While a generalized overtime definition refers simply to those hours worked outside of the standard working schedule, overtime commonly refers concurrently to the employee’s remunerations of such work. The overtime rate of pay varies between companies and by specifics of the overtime, such as the number of overtime hours worked.

Overtime rules

A job duty that would be considered exempt would include high-level responsibilities. For example, this could be executive, administrative or computer-based duties. It also comes into effect if they go over the threshold of working more than 40 hours a week. We’ll break down how overtime works, when it’s necessary and how to calculate it.

  • On August 23, 2004, President George W. Bush and the Department of Labor proposed changes to regulations governing implementation of the law.
  • Determine the number of hours you worked overtime this month.
  • Whatever the limit is , the employer should compensate for each hour exceeding the normal threshold.
  • I paid my employee for 43 hours of wages during the last workweek.

Include overtime pay on the employee’s regular payday as part of their regularly distributed payroll. Depending on the job type, the number of regular working hours might be determined by the best practices of a profession , agreements between sides, or legislation. Whatever it is, it has to fulfill the national or local labor law regulations. Most commonly, a workday is 8 hours, and a workweek equals what is overtime 40 hours. Whenever there is tracked time on a rest day (i.e. weekends) or on a Public Holiday, the regular hours and daily/double OT will always be 0. Overtime pay rates vary depending on company policy, local jurisdiction, and specifics of overtime, such as the number of overtime hours worked. Non-exempt employees earn less than $684 a week or $35,568 annually and qualify for overtime pay.

Who Is Exempt and Nonexempt from Overtime Pay?

For instance, an employee who works nine hours per day for four work days may be scheduled for only four hours on the fifth day of the week to avoid overtime. Is it legal for my employer to flex my hours within one workweek to keep me under 40 hours? For instance, if you work nine hours per day for four work days, you may be scheduled for only four hours on the fifth day of the week to avoid overtime. Divide your weekly salary by 40 to get the regular hourly rate. Employers should keep a record of the hours employees work, their rest times, vacation days and sick leave as well as their working pattern, and employees have access to this record. A longer workweek is only possible if the employee has at least 72 consecutive hours break in 14 days.

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