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April 12, 2022
Q&A: Drafting Handbook Language on Overtime Pay for Multiple States

by Eric Loman

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Question: Our company has offices in two different states with nonexempt employees in both locations. In our employee handbook, do we need to list the details and specify the overtime pay requirements for each state, or can we simply mention we will pay overtime according to each state’s regulations?

Answer:There’s no legal requirement to have any particular information in your handbook. It’s usually a good practice to have an employee handbook, but the more detail you include for something like overtime calculations, the more opportunity there will be for mistakes or for accurate information to become inaccurate if a law changes.

I recommend having the handbook say overtime will be paid in accordance with federal, state, and local law, and invite employees to contact the HR department in their local office if they have specific questions.

Eric Loman is an attorney with Jackson Loman Stanford & Downey, P.C., in Albuquerque, New Mexico, where he specializes in representing plaintiffs in personal injury and wrongful death cases and has obtained several multi-million-dollar settlements and verdicts on behalf of his clients. An experienced litigator, he has handled dozens of jury trials and countless bench trials. You can reach him at eric@jacksonlomanlaw.com.

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