Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Overtime pitfalls: The lurking traps

A rash of wage-and-hour lawsuits is drawing attention to the often-overlooked complexities of overtime pay laws. Think you don't owe overtime? Check our gallery of potential tripwires.

Illustrations by Terry Allen for Fortune Small Business.

Comp Time
Comp Time
The FLSA doesn't recognize "comp time" for nonexempt employees, particularly in terms of allowing someone to work extra now in anticipation of paid time off later.

An employee who worked 44 hours in a given week should receive time-and-a-half for four hours; the only option for creating comp time would be for the employee to work only 36 hours the following week to equalize a two-week paycheck. Banking those extra four hours against future vacation time would violate the FLSA.

Last updated January 22 2008: 8:59 AM ET

The $23,660 Rule

"Executive" Assistant

IT Employees

Extra Hours


Comp Time

Stock Options

The Cog Factor

The Overtime Bomb
Why are more and more couples risking romance to launch a business together? How do the successful ones make it work? Five couples - and one ex-couple - share their stories and strategies. (more)
The 150,000 nerds that swarmed to Vegas from around the world didn't witness the birth of the next iPhone or similar blockbuster. In the words of FSB tech columnist Jonathan Blum: "In 2008, the tech thing will be sort of like going to Costco: You'll have to be prepared to dig a bit to get the really good stuff." (more)
Small businesses and artisans are creating some of the most alluring jewelry, housewares, edibles and other indulgences. Check out FSB's picks. (more)