Construction Overtime Tracking: FLSA Compliance for Field Crews

Overtime violations are among the most common wage and hour complaints in construction. The Fair Labor Standards Act (FLSA) has specific rules for when overtime applies and how to calculate it. Getting it wrong can mean back pay, penalties, and lawsuits.

This guide covers FLSA overtime requirements for construction crews and how to stay compliant.

FLSA Overtime Basics

The Standard Rule

Non-exempt employees must receive overtime pay of at least 1.5x their regular rate for hours worked over 40 in a workweek.

• Overtime threshold: 40 hours per workweek
• Overtime rate: 1.5x regular hourly rate (minimum)
• Workweek: Any fixed 168-hour period (7 consecutive days)

Who’s Covered?

Most construction workers are non-exempt and entitled to overtime:

• Carpenters
• Electricians
• Plumbers
• Laborers
• Equipment operators
• Most field workers

Who’s Exempt?

Some employees don’t get overtime (exempt):

• Salaried managers meeting certain tests
• Certain professional employees
• Outside sales positions

Important: Job titles don’t determine exemption. Exemption requires meeting both a duties test AND a salary-basis/salary-level test. Many “supervisors” in construction are misclassified because they don’t meet one or both requirements, and should receive overtime.

State Overtime Rules

Some states have additional overtime requirements:

California

• Daily overtime: Over 8 hours/day = 1.5x; Over 12 hours/day = 2x
• Seventh consecutive day: First 8 hours = 1.5x; Over 8 hours = 2x
• Weekly overtime: Over 40 hours = 1.5x (in addition to daily)

Other States

Several states have daily overtime or other special rules:

• Alaska: Daily overtime after 8 hours
• Colorado: Daily overtime after 12 hours
• Nevada: Daily overtime rules depend on wage thresholds and specific exceptions—review Nevada Labor Commissioner guidance at labor.nv.gov

Check your state’s specific requirements, as rules vary and change.

Tracking Overtime Correctly

Define Your Workweek

Pick a consistent workweek and stick to it:

• Must be a fixed 7-day period
• Can start any day/time (Sunday-Saturday, Monday-Sunday, etc.)
• Must be established in advance
• Cannot change to avoid overtime

Example: If your workweek runs Sunday-Saturday, an employee who works 45 hours from Sunday through Saturday gets 5 hours overtime, regardless of which days they worked.

Track All Hours Worked

“Hours worked” includes more than just job site time:

• Travel between job sites: Generally compensable
• Mandatory meetings: Compensable
• Training: Compensable (if required)
• Setup/cleanup: Compensable
• On-call time: May be compensable depending on restrictions

Common Tracking Errors

Missing short periods: Workers who arrive early and start working, or stay late to finish tasks. If they’re working, it counts.

Unauthorized overtime: Even if you didn’t approve it, if the worker worked the hours, you must pay overtime. (You can discipline them, but you still must pay.)

Averaging hours: You cannot average hours across multiple weeks. Each workweek stands alone.

Calculating Overtime Pay

Regular Rate Calculation

The regular rate isn’t always the hourly wage. Include:

• Base hourly wage
• Non-discretionary bonuses
• Shift differentials
• Piece rate earnings

Example Calculation

Worker earns $25/hour plus a $100 production bonus this week. They worked 50 hours.

1. Calculate total straight-time earnings: (50 × $25) + $100 = $1,350
2. Calculate regular rate: $1,350 ÷ 50 = $27/hour
3. Calculate overtime premium: 10 OT hours × ($27 × 0.5) = $135
4. Total pay: $1,350 + $135 = $1,485

Note: The overtime rate is based on $27/hour (including bonus), not $25/hour.

Blended Rates

When workers earn different rates for different work in the same week, you can use the weighted average method:

1. Calculate total straight-time earnings at each rate
2. Divide by total hours for regular rate
3. Apply overtime premium to overtime hours

Common Construction Overtime Issues

Travel Time

Commuting: Normal commuting from home to a regular job site is not compensable.

Travel between sites: If a worker travels from Site A to Site B during the workday, that travel time is compensable.

Travel to distant jobs: Travel that “cuts across the workday” (happens during normal work hours) is generally compensable.

Waiting Time

• Waiting at job site (controlled by employer): Compensable
• Waiting for materials (if required to stay): Compensable
• On-call but free to leave: Usually not compensable

Piece Rate and Overtime

Workers paid by piece rate still get overtime:

1. Calculate total piece rate earnings
2. Add any hourly guarantees
3. Divide by total hours for regular rate
4. Pay overtime premium for hours over 40

Multiple Job Sites

Hours from all job sites for the same employer count toward the 40-hour threshold. You can’t avoid overtime by sending a worker to different sites.

Recordkeeping Requirements

FLSA requires employers to keep records for 3 years:

• Hours worked each day
• Total hours worked each week
• Regular rate of pay
• Total overtime earnings
• Total wages paid

GPS time tracking creates these records automatically and keeps them accessible.

Common Compliance Mistakes

Misclassifying Workers

Calling someone a “supervisor” or paying them a salary doesn’t automatically make them exempt. If they primarily do manual labor and don’t meet the duties tests, they’re entitled to overtime.

Off-the-Clock Work

Requiring or allowing work before clocking in or after clocking out. If you know about it, you must pay for it.

Comp Time Instead of Pay

Private employers generally cannot offer compensatory time off instead of overtime pay. You must pay overtime in cash.

Automatic Deductions

Automatically deducting for lunch breaks when workers actually worked through lunch. Meal period deductions require a genuine break.

Changing Workweeks

Shifting the workweek to avoid overtime. Once established, workweeks should remain consistent.

Avoiding Overtime Liability

Accurate Time Tracking

The best protection is accurate records:

• GPS-verified clock-in/out times
• Clear records of all hours worked
• Documentation of breaks taken
• Automatic overtime calculations

Clear Policies

Establish and communicate policies:

• Overtime must be pre-approved
• Unauthorized overtime will be paid but may be disciplined
• How to report missed clock-ins
• Meal and rest break requirements

Regular Audits

Review time records regularly:

• Check for employees approaching 40 hours
• Verify overtime is being calculated correctly
• Look for patterns suggesting off-the-clock work
• Confirm exempt employees truly meet exemption tests

Technology Solutions

GPS time tracking helps with overtime compliance:

• Automatic hour totaling: No manual calculation errors
• Overtime alerts: Notification when workers approach 40 hours
• Accurate records: GPS-verified times, not estimates
• Easy audits: Searchable, exportable records
• Multiple job site tracking: All hours in one system

The Bottom Line

FLSA overtime compliance for construction requires:

1. Understanding the rules: 40-hour threshold, 1.5x rate, who’s covered
2. Accurate tracking: All hours worked, at all job sites
3. Correct calculation: Include bonuses, use proper regular rate
4. Good records: Keep documentation for 3 years
5. Clear policies: Set expectations, enforce consistently

Overtime violations can be expensive—back pay, liquidated damages, and attorney fees add up fast. Invest in proper tracking and compliance now.

Ready to Simplify Overtime Tracking?

• Request a demo — See automatic overtime calculation
• Learn more — GPS time tracking for construction
• View pricing — Flat-rate options for growing teams

This article provides general information about FLSA overtime requirements. Laws vary by state and change over time. Consult with an employment attorney or HR professional for guidance specific to your situation.