What is Overtime?
When an employee works longer than what is considered standard (eight hours a day, 40 hours a week), employers are required to provide extra compensation in the form of overtime pay. Employers are required to pay overtime by federal law. This law was first introduced in 1938 as part of the Fair Labor Standards Act (FLSA). The concept of overtime pay was established as a way to reward employees for working longer hours, to prevent employers from taking advantage of their employees, and to encourage employers to hire more workers (the idea being that taking on another employee would be more affordable in the long run than forcing their existing employees to constantly work overtime).