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threshold; and (iii) the work they actually do falls into

one of the exempt categories (see discussion above).

Mistake #5: Not having a way of documenting

hours worked. Even if employees are not paid on an

hourly basis, it is still the employer’s obligation to keep a

record of their time. Not having these records can be

very costly for a business whose non-exempt employees

claim to have worked more than 40 hours a week.

Mistake #6: Using the wrong numbers. We have

seen a number of employers who believe that if they pay

their employees on a two-week payroll, they only have to

pay overtime if the total worked in two weeks is more

than 80 hours. This is untrue- overtime is calculated on a

per-week basis, not based on the payroll period. For

example, an employee who is paid every other week

might work 25 hours the first week and 50 the next-

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