In recent hours, the U.S. Government has reaffirmed that there is no legal obligation to pay overtime to those who work on holidays or weekends, unless they exceed the 40-hour limit in a single workweek. This decision, based on the Fair Labor Standards Act (FLSA), puts an end to the expectations of some workers who used to receive additional pay for working on non-working days.
The national regulation, as detailed on the Department of Labor’s official website, exempts employers from granting a wage premium for simply working Saturdays, Sundays or holidays, unless the total hours worked in the week exceed the stipulated 40 hours. This confirmation comes from the Wage and Hour Division, the agency in charge of enforcing labor rights in the country.
U.S. overtime: who is entitled to more money?
The FLSA provides that most “non-exempt” employees (those covered by the law) are entitled to a premium of at least 1.5 times their regular salary for each hour worked in excess of 40 hours per week. Specifically, if a worker earns USD 50 per hour, each hour in excess of the 40-hour limit in a single week must be paid at the rate of USD 75 (USD 50 + half that rate = USD 75).
This benefit, popularly known as “overtime”, is not linked to the performance of work on weekends or holidays, but strictly to exceeding the 40-hour threshold in the course of the workweek. In other words, what is relevant is not when you work, but how many hours you accrue in that 168 consecutive hour period, as defined by the FLSA.
Although the law does not contemplate a maximum number of hours per day for workers over the age of 16, it does require that, upon exceeding 40 hours per week, the corresponding surcharge must be paid. It should be noted that each employer is obliged to keep an accurate record of the hours worked by its employees and the wages paid, as required by the regulations.
Goodbye to the extra pay: these employees are not entitled to claim it
According to official information published on usa.gov and on the Department of Labor’s website, the FLSA does not provide for additional pay for working weekends, holidays or night shifts in a specific manner, as long as those hours do not exceed the weekly limit of 40 hours. This means that anyone who works, for example, Saturday and Sunday, but does not accumulate more than 40 hours in total during the week, is not legally entitled to receive a premium.
In addition, the law also does not require extra pay in situations such as:
- Vacations or special celebrations.
- Termination of the employment contract.
- Periods of illness.
- Vacations or breaks granted by the employer.
In all these cases, the decision to pay an additional is at the discretion of each employer. Therefore, some workers who previously benefited from individual agreements or internal agreements may no longer receive the bonus if their employer decides to strictly comply with the federal rule.
FLSA coverage: Who is covered and who is not?
The FLSA covers, under the concept of “employer coverage,” companies with a turnover of at least $500,000 per year and specific institutions such as hospitals, schools, nursing homes or government agencies. However, even when this business coverage does not apply, there is “individual coverage,” under which any employee engaged in interstate commerce (e.g., handling documents traveling out of state or making long distance calls) is also covered under the law.
Still, there are employees who may be considered exempt from the FLSA, meaning they do not receive overtime pay protection. For example, certain executive, administrative and professional positions that meet specific requirements. To learn about each specific case, the DOL provides clear guidelines on its official website.
What does this change mean for workers?
Strictly speaking, this is not a recent amendment to the FLSA, but a ratification of the current legal interpretation. However, the novelty lies in the massive dissemination of official communications reminding employees and employers of their rights and obligations.
For those who were used to receiving a bonus for working on holidays or weekends, the news means an adjustment in their income. On the other hand, workers who work more than 40 hours per week will continue to receive overtime pay, which is key to compensating for the extra effort and which, according to the FLSA, must be at least 1.5 times the base wage per hour of overtime worked.
Beyond federal law: states and private agreements
Although the FLSA is the federal minimum standard, each state has the power to legislate in a complementary manner. Some jurisdictions establish more beneficial conditions for workers, such as a different threshold for overtime pay or even double pay on certain state holidays. In these cases, the rule more favorable to the employee prevails. On the other hand, there are also collective bargaining agreements or individual contracts that may offer remuneration above the minimum established by federal law. Therefore, it is essential that workers review their labor agreements and, if necessary, consult with experts or the Department of Labor to learn about their rights.
The agency charged with enforcing these rights, the U. S. Department of Labor’ s Wage and Hour Section, continues to stress the importance of the right to work on days traditionally considered non-workdays.
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