We have been receiving frequent inquiries by our readers into what is uncompensated overtime and how it should be treated. Rather than refer readers to old articles, some more than five years, we though it would be a good idea to update the subject incorporating new guidance and provide some of the basics of the issue.
Under the Fair Labor Standards Act overtime must be paid to hourly employees whenever they work more than 40 hours in a week but not to salaried executive, administrative or professional employees even though they often work more than forty hours per week. The Act refers to hourly employees as “non-exempt” and salaried employees (those not paid overtime) as “exempt. Uncompensated overtime (UOT) then refers to the work exempt employees perform above and beyond forty hours per week.
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