PHR · Question #145
As a HR Professional you must understand the laws and regulations, which affect employee compensation. If a non-exempt employee works more than 40 hours per week, what is their overtime pay rate?
The correct answer is A. 150 percent of their base pay. Under the FLSA, non-exempt employees must receive overtime pay at one-and-a-half times their regular rate for all hours worked beyond 40 in a workweek.
Question
As a HR Professional you must understand the laws and regulations, which affect employee compensation. If a non-exempt employee works more than 40 hours per week, what is their overtime pay rate?
Options
- A150 percent of their base pay
- BIt depends on the state where the employee is employed
- CNon-exempt employees do not receive overtime pay
- D50 percent of their base pay
How the community answered
(22 responses)- A82% (18)
- B5% (1)
- C5% (1)
- D9% (2)
Why each option
Under the FLSA, non-exempt employees must receive overtime pay at one-and-a-half times their regular rate for all hours worked beyond 40 in a workweek.
150 percent of base pay equals 1.5 times the regular rate of pay, which is the federally mandated overtime standard under the Fair Labor Standards Act for non-exempt employees working more than 40 hours in a workweek. This federal floor applies nationwide, and states may only set higher - not lower - minimums, making the rate consistent across all states.
While some states provide additional overtime protections, the FLSA establishes a uniform federal minimum of 1.5x for all non-exempt employees, so the overtime rate is not simply variable by state.
Non-exempt employees are precisely the class of workers covered by FLSA overtime provisions and must receive overtime pay - it is exempt employees who are excluded from these requirements.
50 percent of base pay represents only half-time pay, not the legally required time-and-a-half (1.5x) rate mandated by the FLSA.
Concept tested: FLSA non-exempt employee overtime pay rate
Source: https://www.dol.gov/agencies/whd/overtime
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