What Business Owners Get Wrong about Overtime and The FLSA

Most business owners think they understand overtime—until an audit reveals years of miscalculations and a back-pay liability they never saw coming. Eric Jones and David Franzonello of Workforce PayHub break down everything you actually need to know: how the FLSA defines overtime, who qualifies as exempt and why, how the new no-tax-on-overtime benefit works at tax time, and how to calculate weighted average overtime correctly before it becomes a costly compliance problem.  In This Episode: How the FLSA actually defines overtime—and why the common assumption that 10 hours in a day triggers overtime pay is wrong What the no-tax-on-overtime law delivers for your employees, how the premium is calculated, and why withholding still comes out of every paycheck The salary threshold and three duties tests (executive, administrative, and professional) that determine whether your employees are legally exempt from overtime How weighted average overtime works when employees earn multiple pay rates in the same week—and the back-pay and IRS penalties that accumulate when you calculate it wrong for years When it makes sense to voluntarily pay overtime to exempt employees, how salaried non-exempt arrangements work, and what union contracts mean for your overtime obligations Chapters: 00:00: Introduction 00:28: What Is Overtime? 02:14: No Tax on Overtime Explained 06:35: Healthcare Workers' Special Rule 11:29: The Salary Threshold Test 13:27: The 2024 Salary Rule Fight 17:29: The Three Duties Tests 24:27: Weighted Average Overtime 31:10: Salaried Non-Exempt Options 35:26: Holiday Pay & Voluntary Overtime 37:44: Union Contracts & Overtime 41:37: Sundays, Employee Dignity & Overtime Policy Resources Mentioned: https://www.workforcepayhub.com/ https://www.dol.gov/agencies/whd/overtime https://www.irs.gov/newsroom/one-big-beaut... Produced byhttps://saintkolbestudios.com/