Overtime

July 9, 2023

Overtime
The Fair Labor Standards Act (Link: https://www.workforcehub.com/blog/top-10-flsa-mistakes-made-by-employers-part-one/) has been around since 1938. Regardless, thousands of employers fail to comply (either knowingly or unknowingly) with the FLSA overtime rules. Some violators are well-known multi-million dollar corporations.

When is overtime pay mandatory?
Employers must pay overtime when hours worked by a non-exempt hourly worker exceed 40 hours in a defined work week. The overtime pay rate under the Fair Labor Standards Act (FLSA) must be at least time and one-half the employee’s regular rate of pay. No limit is imposed on the number of hours worked in a workweek for those over age 16. Overtime pay is not required for work on weekends, holidays or regular days of rest, unless the employee has exceeded the overtime hours limit in the workweek. State, local, union and industry-specific laws may also apply.

Case Studies
Overtime violations usually result from either misclassifying non-exempt employees or failing to track all employee time.



A Las Vegas plastering company had to pay $137,174 in back wages owed to 156 piece-rate employees who weren’t paid overtime.

https://www.dol.gov/newsroom/releases/whd/whd20210319



An Ohio-based home health agency was fined $327,848 for multiple violations including not paying overtime when travel time between clients pushed aides over a 40-hour workweek.

https://www.dol.gov/newsroom/releases/whd/whd20210316-0



The first line of defense against overtime violations is to track all employee time for every shift!



In addition:

1. Make sure overtime-exempt employees meet FLSA duties test
2. Make sure independent contractors meet the IRS criteria
3. Don’t require off-the-clock work
4. Know overtime laws regarding piece-rate work
5. Know tip laws
6. Compensate correctly for “call-in” shifts or “on-call” work
7. Know meal/break laws
8. Pay employees for training time, putting on uniforms and traveling between job sites throughout the day (traveling from home to the first job site or client is not generally compensable time)

Unplanned Overtime Costs You Big Time

While we’re on the subject of overtime, it's worth pointing out how unplanned overtime impacts your labor budget. A recent Deloitte study of over 800 U.S. employers revealed an average of 31 unplanned overtime hours each week, per company. Let's do the math: if your company has an overtime wage of $25, 31 hours a week would add up to a yearly cost of over $40,000.


By limiting unplanned overtime, you not only reduce the risk of a violation, but also save your labor budget.

Automated Time and Attendance Works Overtime to Keep You Compliant
Automated time and attendance can help you track employee time and provide alerts and notifications when an employee is approaching overtime status. With automation in place, you have more control over your budget and all the right information for an accurate audit.


Automated time and attendance provides the following tools for overtime compliance:

● Alerts for overtime hours thresholds
● Meal/break early punch lockout
● Overtime calculation by job code
● Tip reporting
● Flexible scripting for state or local overtime laws
● Audit-ready record keeping and reporting
● Mobile location management


THIS ARTICLE IS FOR GENERAL INFORMATION PURPOSES ONLY. BUSINESS FINANCIALS, INC. (BFI) IS NOT ISSUING SPECIFIC FINANCIAL OR TAX ADVICE. PLEASE CONSULT WITH A LICENSED FINANCIAL PLANNER, TAX ATTORNEY, OR ACCOUNTANT FOR ASSISTANCE WITH YOUR SPECIFIC SITUATION. IF YOU NEED HELP, WE INVITE YOU TO CONTACT US. WE WILL BE HAPPY TO MAKE RECOMMENDATIONS OR REFER YOU TO A LICENSED PROVIDER WHO MAY BE BEST SUITED FOR YOUR SITUATION.

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By kim • May 3, 2025
 Payroll is one of those business tasks that seems simple—until it’s not. Between compliance rules, employee classifications, taxes, and deadlines, managing payroll can be a significant burden for small business owners. At Business Financials Inc., we specialize in providing stress-free payroll solutions that keep your business compliant and your employees happy. Here are three signs it might be time to outsource your payroll: 1. You’re Spending Too Much Time on Payroll If you're spending hours every week calculating hours, managing tax withholdings, or cutting checks, that’s time you could be spending on strategy, sales, or customer service. Our team can handle it all—from direct deposits to tax filings—so you can focus on growing your business. 2. You’re Worried About Compliance Payroll laws are constantly changing, and non-compliance can lead to hefty fines. We stay up to date on state and federal regulations so you don’t have to. From ACA reporting to W-2 processing, we’ve got it covered. 3. You’re Expanding Your Team More employees means more paperwork, tax responsibilities, and scheduling complexity. Our scalable payroll services grow with your business and include employee self-service portals for accessing pay stubs, tax forms, and more. Let Business Financials Inc. Handle the Heavy Lifting Our goal is to make payroll painless. Whether you have two employees or two hundred, we’ll build a solution that fits your business. THIS ARTICLE IS FOR GENERAL INFORMATION PURPOSES ONLY. BUSINESS FINANCIALS, INC. (BFI) IS NOT ISSUING SPECIFIC FINANCIAL OR TAX ADVICE. PLEASE CONSULT WITH A LICENSED FINANCIAL PLANNER, TAX ATTORNEY, OR ACCOUNTANT FOR ASSISTANCE WITH YOUR SPECIFIC SITUATION. IF YOU NEED HELP, WE INVITE YOU TO CONTACT US. WE WILL BE HAPPY TO MAKE RECOMMENDATIONS OR REFER YOU TO A LICENSED PROVIDER WHO MAY BE BEST SUITED FOR YOUR SITUATION.

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By kim • May 3, 2025
Running a business involves more than just selling a great product or service—it also means staying on top of your finances. Bookkeeping may not be the most glamorous part of entrepreneurship, but it’s one of the most essential. At Business Financials Inc., we specialize in helping small businesses manage their finances efficiently, accurately, and with confidence. The Real Cost of DIY Bookkeeping Many business owners try to manage their books themselves to save money. Unfortunately, that can lead to costly mistakes like inaccurate financial reporting, missed tax deadlines, and cash flow issues. Poor bookkeeping can even hurt your ability to secure loans or attract investors. The Benefits of Professional Bookkeeping Partnering with a bookkeeping expert offers several advantages: Accuracy: We ensure your records are clean and compliant. Time Savings: Spend more time focusing on what you do best—running your business. Better Financial Insight: With accurate financials, you can make informed decisions. Peace of Mind: Know that your finances are in professional hands. Customized Solutions for Your Business At Business Financials Inc., we don’t believe in one-size-fits-all. Whether you need full-charge bookkeeping or support with specific tasks like payroll, invoicing, or bank reconciliations, we offer tailored solutions to fit your needs. Let us take the stress out of your financial management. Contact us today to schedule your free consultation and see how we can help your business grow.  THIS ARTICLE IS FOR GENERAL INFORMATION PURPOSES ONLY. BUSINESS FINANCIALS, INC. (BFI) IS NOT ISSUING SPECIFIC FINANCIAL OR TAX ADVICE. PLEASE CONSULT WITH A LICENSED FINANCIAL PLANNER, TAX ATTORNEY, OR ACCOUNTANT FOR ASSISTANCE WITH YOUR SPECIFIC SITUATION. IF YOU NEED HELP, WE INVITE YOU TO CONTACT US. WE WILL BE HAPPY TO MAKE RECOMMENDATIONS OR REFER YOU TO A LICENSED PROVIDER WHO MAY BE BEST SUITED FOR YOUR SITUATION.

2025 Real Estate Market Overview

By kim • April 2, 2025
The 2025 real estate housing market is poised for a period of stabilization and growth, influenced by factors such as mortgage rates, housing inventory, and regional economic conditions. Here's an overview of the key trends shaping the market this year.