Getting overtime wrong is one of the fastest ways for a field-service business to land in a wage dispute. Under the federal Fair Labor Standards Act (FLSA), most hourly workers must be paid 1.5x their regular rate for every hour worked over 40 in a workweek. This guide walks through the rules, the math, and the errors that cost crew owners thousands.
The basic FLSA rule
Overtime is owed on hours worked beyond 40 in a single, fixed seven-day workweek. The FLSA does not require overtime for working more than 8 hours in a day, for weekends, or for holidays — that's a state-law or company-policy question. (A few states like California do have daily overtime, so always check your state.)
Exempt vs. non-exempt
Only non-exempt employees earn overtime. To be exempt, a worker generally must be paid on a salary basis above the federal threshold and perform executive, administrative, or professional duties. Job title alone never determines status — duties do.
- Non-exempt: most hourly field workers — cleaners, guards, laborers, technicians. They get overtime.
- Exempt: qualifying salaried managers and professionals. No overtime required.
Misclassifying a non-exempt worker as exempt to avoid overtime is a common — and expensive — mistake.
Step-by-step example (single rate)
- An employee earns $20/hour and works 46 hours this week.
- Regular pay: 40 x $20 = $800.
- Overtime rate: $20 x 1.5 = $30/hour.
- Overtime pay: 6 x $30 = $180.
- Total gross pay: $800 + $180 = $980.
Weighted overtime for multiple pay rates
Many crews pay different rates for different job sites or tasks. When a non-exempt worker earns two or more rates in the same week, overtime is based on the weighted average regular rate, not the rate they happened to be on for the extra hours.
| Task | Hours | Rate | Pay |
|---|---|---|---|
| Cleaning | 30 | $18 | $540 |
| Supervising | 15 | $24 | $360 |
| Total | 45 | — | $900 |
Weighted regular rate: $900 / 45 = $20/hour. The overtime premium is half that rate for the 5 OT hours: 5 x ($20 x 0.5) = $50. Total due: $900 + $50 = $950. (The straight-time portion is already in the $900, so you only add the half-time premium.)
Common mistakes to avoid
- Averaging hours across two workweeks to stay under 40.
- Leaving bonuses and shift differentials out of the regular rate.
- Paying "comp time" instead of overtime (not allowed for private employers).
- Sloppy rounding that shaves minutes — see our time clock rounding rules.
- Trusting handwritten timesheets instead of verified punches.
Make the numbers trustworthy
Accurate overtime starts with accurate hours. PosupClock verifies every punch with facial recognition and GPS geofencing so the hours you pay are the hours actually worked — at a flat price with no per-employee fees, which matters when crews grow.
Want to run your own numbers? Try our free hours calculator or the weekly time card calculator to total hours and overtime in seconds.
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