Overtime Rules & Regulations for Federal Employees
The right to overtime pay is one of the most cherished labor protections granted by federal law. Both public and private sector employees have the right to overtime pay for work done beyond their designated hours. However, government employees face a different and more complex set of rules around overtime under federal law than their private counterparts. Understanding these rules is essential to ensure your agency compensates you fairly for your work. In this blog post, we’ll explain the basic rules governing overtime pay for federal employees. We’ll also cover who is eligible for overtime, how rates are calculated, and what limitations apply to this compensation. Understanding Federal Employee Overtime Rules Two laws govern how federal employees can receive overtime pay: the Fair Labor Standards Act and Title 5 of the U.S. Code of Federal Regulations. The Fair Labor Standards Act (FLSA) is the major law that provides the foundation for wage, hour, and overtime rules many private and public employees enjoy today. All federal employees are assumed to be eligible for the rights and benefits of the FLSA unless they fall under one of the stated exemptions. Federal overtime laws for salaried employees not covered by the FLSA are found under Title 5 of the U.S. Code of Federal Regulations. Each law uses a different process to calculate a federal employee’s overtime pay. FLSA Overtime Under the FLSA, nonexempt federal employees are eligible for overtime pay for time worked beyond the standard 40-hour workweek. Calculating FLSA overtime works differently for federal employees than private employees. For federal employees, overtime pay is a combination of: It helps to understand the terms “straight-time rate of pay” and “hourly regular rate of pay,” as these have specific meanings as used in these laws. Your “straight-time rate of pay” is your basic, employer-determined wage, e.g., $25.00/hour. By contrast, employees can calculate their “hourly regular rate of pay” by dividing the total compensation (special rate supplements included) they receive in a workweek by the number of hours they work in a week. Why is there a difference between these two rates? Federal law entitles employees to premium pay rates for working on Sundays, nights, and under other special circumstances. FLSA overtime calculations consider the supplementary earnings from those hours when determining overtime for a given workweek. The DOL overtime rule works the same for nonexempt federal employees who aren’t paid hourly. Nonexempt salaried workers can determine their “straight time rate of pay” by simply dividing their annual income by 2,087 (the number of hours federal employees work in a year). Title 5 Overtime Under Title 5, federal workers exempt from the FLSA can receive supplemental compensation for “officially ordered or approved” hours beyond the 40-hour workweek. An employee’s Title 5 overtime rate depends on where they fall on the General Schedule (GS) payscale. Employees whose income falls below GS-10, step one, are entitled to receive time-and-a-half (1.5 times) their hourly pay rate for any overtime work. For example, an exempt federal employee whose hourly rate is $23.00/hour would be entitled to $34.50/hour for each hour of approved overtime. Overtime for an employee whose income is above GS-10, Step 1 can go one of two ways: The employee will be paid whichever of these two rates is higher. What Is the Overtime Cap for Federal Employees? There are some limits to the amount of overtime certain federal employees can earn in a given pay period. Under Title 5, a GS federal employee can’t receive so much premium pay that their biweekly rate would exceed whichever of the following is greater: This limit takes into account all forms of premium pay, not just overtime. For example, it includes Sunday premium pay, night pay, holiday pay, etc. However, these limits only apply to GS employees earning Title 5 overtime, not FLSA overtime pay. Skilled Advocates for Federal Employees Overtime pay is vital to ensure that employers compensate you adequately. If your employer does not pay your designated overtime, federal law gives you the right to pursue legal action. The Federal Employment Law Firm of Aaron D Wersing PLLC has spent years fighting for government employees who are denied rightful compensation and benefits. With deep knowledge of FLSA and Title 5, our attorneys are prepared to help you understand and assert your rights to fair pay. To learn more about how we can help you with an overtime-related dispute, contact our office today.
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