The first step in making sure overtime (OT) pay calculations are fair and accurate is knowing what the Fair Labor Standards Act (FLSA) requires of your small and medium-sized business. The United States Department of Labor enforces the law and administers wage-related mandates through the Wage and Hour Division (WHD).

OT pay for eligible workers and precise recordkeeping of their hours are mandatory. And since errors and omissions can be costly, you’ll want to avoid OT miscalculations to comply with the law.

Preventing OT errors starts with understanding WHD rules. The FLSA defines the workweek as 168 hours, or 7

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