When to pay overtime.

foleya

Most of our employees work a 40 hour week for which we pay overtime for anything over that 40 hours. We have some full-time employees that work a 37.5 hour work week. Do we pay those employees overtime after 37.5 or after 40? Currently, we are paying OT after their 37.5 put wondering if we are required, by law, to do so. We are an Illinois employer.

Dutch2

Can't be 100% sure but I have never heard of IL having a different requirement.
The Fair Labor Standards Act (FLSA) of 1938 is the primary U.S. federal law regulating the wages and hours of both public and private employers. It requires covered employers to pay eligible employees at least one and one-half times their regular rate of pay—not less than the relevant minimum wage—for all hours worked in excess of 40 in a week.
Unless you have some sort of contract with your ee's you are not required to pay OVT for hours worked in excess of 37.5 as long as they are under 40. We pay OVT for all productive time worked in excess of 40 hours a week. An ee can have 36 reg hrs and 8 holiday hours for a total of 44 hours - we would not pay OVT for the four hours in excess of 40 because they were not worked or productive time.

NaeNae55

Agree with Dutch. If they normally work 37.5 hours but have to work 42, you would pay them 40 at regular time and 2 at time and a half. You can label any amount of hours as full time, but the FLSA says anything over 40 is overtime.

This assumes you pay them an hourly rate for 37.5 hours, and not pay them for 40 hours when they only work 37.5.