All hourly workers have the right to be paid their due based on the number of hours they work. In Indiana, overtime rules are governed by federal law, but some state-level developments may influence how overtime is treated and understood. 

Understanding the basics about this type of pay can help workers recognize when they are entitled to the additional pay and what the pay should look like.

What is overtime under the Fair Labor Standards Act?

Federal Government’s Fair Labor Standards Act for Overtime Eligibility:

Non-exempt employees must be paid 1.5 times their regular rate of pay for any hours that they work over 40 in a given week. This is based on the hours worked, rather than pay periods, schedules or averages. One important thing to note is that Indiana doesn’t require daily overtime. This means that workers who put in more than eight hours in a single shift are not eligible for overtime unless their weekly hours exceed 40.

Certain employees, including those who are classified as exempt, aren’t eligible for overtime at all. Because of this, some executives, administrative and professional roles won’t see overtime pay.

Overtime is calculated using the employee’s regular rate of pay. In some cases, this includes more than just their hourly wage. Some shift differentials, bonuses, and commissions can factor into this calculation.

Unfortunately, some employers aren’t forthcoming about overtime pay and simply won’t pay it. Any worker who knows that they worked more than 40 hours in a single workweek should work with someone familiar with these matters if they don’t receive the overtime compensation they are due.