Hi everyone and welcome back to Money Girls Quick and Dirty Tips for a richer life.

I'm Laura Adams.

Over the years, I've seen a lot of confusion in the workplace about who's entitled to receive overtime pay and who isn't.

It can be a pretty confusing topic, but in this show I'll try to clear up any questions that you may have about overtime.

The rules for overtime pay are part of the Fair Labor Standards Act or FLSA.

It's a federal law that's enforced by the Wage and Hour Division of the U.S. Department of Labor.

Overtime pay is compensation for certain employees who work more than 40 hours in a given work week.

It must be paid at a minimum of 1.5 times the workers normal rate of pay for any hours that exceed 40.

For example, let's say you qualify for overtime pay, earn $20 an hour,

and work 42 hours in a week.

Your minimum overtime rate would be $30 an hour for the two hours that you worked over 40.

That's $20 an hour times 1.5.

So your weekly pay would total $860.

800 for your regular pay plus $860.00. 800 for your regular pay, plus $60 for your overtime pay.

There are two ways to qualify for overtime.

One has to do with requirements concerning your employer,

and the other has to do with the type of work

you do.

Let's talk about the employer requirements first.

All employers with at least two employees must pay overtime wages to qualified workers unless the business

earns less than $500,000 in annual revenue. But there are some exceptions to that

rule. If a business or organization earns less than $500,000,

...