Aren’t the Federal and State Overtime requirements impossible?

Knowledge of the various state and federal laws is important to manage these issues well. If you click on the Compressed Workweek Training link, it provides a very thorough summary and analysis of these questions. The following is a brief summary of the key requirements.

Non-exempt employees

The Federal Fair Labor Standards Act requires employers to pay overtime to non-exempt employees who work more than 40 hours in one week. Therefore the 9/80 schedule is not available to non-exempt employees without a restructuring of the workweek. That is because this schedule results in alternating 36- and 44-hour workweeks. The 44-hour week requires paying overtime. However, if the nine-day option has 40 hours (or less) in both weeks, it does not require overtime pay. (For example, an employee could work the first week for five 8-hour days and the second week for four 10-hour days, with the tenth day off, without incurring any overtime obligation under federal law.)

State Overtime   California, Nevada and Alaska add another overtime requirement: they require payment of overtime after eight hours worked in one day. Under these conditions, all forms of individually-negotiated compressed work schedules would generate daily overtime costs – and are typically not allowed. [See the “Workarounds” FAQ for ways this issue can be addressed.] 

There are times that non-exempt employees working compressed work schedules will need to work on a “flex” day or otherwise exceed their scheduled hours to meet business needs. When this occurs for non-exempt employees, they should get advance approval from their immediate supervisor and be paid premium overtime when they exceed 40 hours in a week.

Consult your HR Director for further information on implementing compressed work schedules for non-exempt employees. 

Exempt employees