Overtime Averaging over a Two Week Period

29 CFR 778.104

Averaging of hours for overtime calculations is not generally permitted, although some states make exceptions for workers in specific lines of work like the medical field.

The Act takes a single workweek as its standard and does not permit averaging of hours over 2 or more weeks. Thus, if an employee works 30 hours one week and 50 hours the next, he must receive overtime compensation for the overtime hours worked beyond the applicable maximum in the second week, even though the average number of hours worked in the 2 weeks is 40. This is true regardless of whether the employee works on a standard or swing-shift schedule and regardless of whether he is paid on a daily, weekly, biweekly, monthly or other basis. The rule is also applicable to pieceworkers and employees paid on a commission basis. It is therefore necessary to determine the hours worked and the compensation earned by pieceworkers and commission employees on a weekly basis.

Spectrum TimeClock supports afteraging hours over a two week period, so called 8 and 80 overtime.


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