How does overtime under the FLSA work for employees outside the U.S.?

Q           If we send an employee to another country for a three-month assignment, are we required to pay overtime under the Fair Labor Standards Act (FLSA), or can we just pay a daily rate? Must we follow the pay regulations of the country the employee will be working in?

Employers aren’t required to pay overtime under the FLSA for employees who spend their entire workweek abroad. However, if otherwise nonexempt employees split their workweek between the United States and another country, under the FLSA, the employer then must pay overtime for that week.

Other countries may have stricter wage regulations or require overtime payments beyond a daily rate. Employers should remain updated on the local labor and employment laws for every country in which they operate. The FLSA exempts international employees in part because employment laws reflect unique, local conditions of employment.

Hannah L. Wurgaft is an attorney with Brann & Isaacson in Lewiston, Maine. She can be reached at 207-786-3566 or hwurgaft@brannlaw.com. Associate Skyler Bennett assisted in this article, as well.