Current U.S labor law clarifies and regulates the rights and duties of workers, their employers, and unions. In the past, workers have fought to protect their social and economic rights, improve safety, prevent child labor, discourage discrimination, and to increase their bargaining power in contracts with employers.
For businesses, general labor laws dictate how many hours an employee can work in a week without receiving overtime pay. These laws help prevent overworking and ensure that workers are receiving adequate and fair compensation. When employees work more than 40 hours per week, labor laws states that employers must pay workers overtime.
To determine who must be paid overtime, the federal Fair Labor Standards Act divides workers into two categories: exempt and non-exempt. Exempt workers often receive a salaried pay for managing or supervising other workers. Employers are not obligated to pay exempt workers any overtime. Non-exempt workers often receive an hourly pay and overtime pay if they work more than 40 hours in a week. [Read more…]