Can I pay my employees a flat weekly salary instead of regular hours and overtime hours?
The Department of Labor has clear-cut rules governing overtime pay. Unless an employee is exempted, the employee is entitled to overtime pay at a rate of 1½ times their regular pay rate. Overtime is defined as anything over 40 hours within a 7-day period. You can still pay your employees a weekly salary, but if the employees dont meet the Department of Labors standards of an exempt employee you will still need to track their hours and pay overtime after 40 hours. Another thing to consider, if an employee is paid a salary you must pay the employee for the entire day if any hours were worked during the scheduled day. You can only deduct if the employee did not work the entire day.
