Human Resource Blog

Overtime and Paid Time Off

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We have a big project coming up in our Virginia firm. We know that we are going to have to use our employees overtime, but how does overtime work with paid time off schedules?

One of the things that employees tend to look forward to most is having their vacations - paid vacations, that is. When there is a company that is very busy and needs all hands on deck, there can be a delicate balancing act required when it comes to meeting the needs of the employer and the employee. In most cases, someone has to do the majority of the compromising and the other party has to be understanding of their needs.

The Fair Labor Standard Act (FLSA) is the act governing how employers can regulate and work within employee hours. According to the FLSA, if you have employees that work longer than 40 hours a week on the upcoming project, then you have to pay those employees time-and-a-half for all of the hours that they work over the standard 40-hour week. The FLSA standard does not apply to any employees that are exempt, such as contractors.

As such, during the course of this project, if your company is looking to save money, you may suggest that some of your employees take the paid time off hours in order to compensate for the overtime. The paid time off hours do not roll over from week to week, so they would have to take it in the same week as they perform overtime. As you can imagine, working on these big projects can be very costly for large companies.