As a business owner, it’s critical to have a thorough understanding of financial matters. Even if you outsource payroll services to a reliable outsourced HR firm, learning all there is to know about overtime can help you make better sense of state requirements. Here are some frequently asked questions to cover what you should know.

What You Need to Know About Overtime

What is overtime pay?

If an hourly employee works any additional time over the standard 40 hours each week, that is considered overtime. When a staff member exceeds their normally scheduled hours, you'll need to compensate them with overtime pay. The rate for this payment may vary by state, but many companies opt to pay time and a half, or the hourly wage multiplied by half pay. In Hawaii, the overtime minimum is an hourly rate of $15.15. For those who earn more than the state’s minimum wage of $10.10, they will earn the time and a half equivalent of that rate.

Is anyone exempt?

In Hawaii, individuals who work in agricultural, horticultural, livestock, dairy, and sugarcane industries are exempt from overtime pay rules. However, those employees in these groups who produce goods for interstate sales are covered by federal overtime guidelines. Salaried individuals who work in administrative, executive, professional, or outside sales fields are completely exempt from overtime pay and are not covered by either federal or state regulations.

Can employers deduct scheduled breaks?

Designated break times, including 15-minute breaks and lunch hours, are considered time off the clock. Therefore, they aren’t included when payroll services determine how many hours the person worked during the week. But if the employee chooses to work during this period, then it must be included when determining how much to compensate them for overtime pay. 

Are there special rules governing holidays?

The state does not mandate that employers pay employees more if they work on a holiday. However, if the hours worked on a holiday contribute to over 40 hours worked weekly, they're eligible for overtime pay. Otherwise, any additional payments are determined by employers on an individual basis, and payroll services will simply include the discretionary amount on the person’s next payment.

Business owners throughout Honolulu, HI, trust in the professionals at Talent HR Solutions for their Payroll/HR service needs. The human resources company provides a variety of outsourced services to simplify management processes and help you run your business more smoothly, including payroll management and HR consulting. Visit  website to find out how they can help you, or call (808) 354-0498 to speak with a representative.