Klinedinst - New Law Clarifies Employer’s Obligations Regarding Payment of Overtime Wages

FEBRUARY 2007

LEGISLATIVE / REGULATORY UPDATE

New Law Clarifies Employer’s Obligations Regarding Payment of Overtime Wages

Currently, the law requires that employers must pay overtime wages no later than the next payday for the payroll period following the period when the overtime was worked. Another law, however, requires that overtime hours worked in a payroll period must be recorded on the itemized wage statement for that same payroll period. To address this confusion, a new law allows employers to show the overtime hours worked in a pay period on the wage statement for the next regular pay period, when the overtime wages will be paid. These overtime hours must be itemized as “corrections,” and the corrections must identify the dates of the pay period to which they refer.

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