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https://hr.cch.com/hhrlib/issues-answers/How-does-paid-vacation-or-PTO-affect-overtime-pay.asp#:~:text=The%20employer%20does%20not%20have%20to%20include%20paid,overtime%20rate%20for%20four%20extra%20hours%20is%20%2415.
https://bizfluent.com/info-7885730-federal-law-overtime-vacation-time.html
Overtime and Vacation. The employee must physically work at least 40 hours for the workweek to qualify for overtime. Therefore, if she works 35 regular hours and takes 6 vacation hours, the employer pays the entire 41 hours at her regular pay rate. But if she works a total of 44 hours between Monday and Thursday of the workweek and takes eight ...
https://www.timesheets.com/blog/2021/08/do-vacation-and-sick-time-count-towards-overtime/
When an employee has vacation or sick hours on their timesheet, it won’t affect their overtime accumulation. For example, let’s say an employee worked Monday through Friday in a state that follows federal overtime requirements (1.5x normal rate of pay after 40 hours in a workweek): Monday- Worked 8 hours. Tuesday- Worked 10 hours.
https://www.patriotsoftware.com/blog/payroll/holiday-pay-overtime-same-week/
Likewise, other types of paid time off, like vacation, sick time, and personal time off do not count toward the overtime calculation. Say a nonexempt employee works Monday through Thursday. Each day, the employee works 10 hours for a total of 40 hours. On Friday, the employee receives eight hours of holiday pay.
https://hr.cch.com/hhrlib/issues-answers/How-does-paid-vacation-or-PTO-affect-overtime-pay.asp
The employer does not have to include paid vacation time when calculating overtime compensation for the week. Assume that the employee regularly works 40 hours for $10 an hour or a fixed weekly salary of $400. Her regular rate is $10, and her overtime rate for four extra hours is $15. For the week, she should receive $460 for her hours worked ...
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