Fundamental Payroll Certification (FPC) Practice Exam

Overtime pay is defined as compensation for hours worked beyond a standard full-time work schedule, which is typically considered to be over 40 hours in a week according to the Fair Labor Standards Act (FLSA) in the United States. This means that when an employee works more than 40 hours in a week, they are entitled to receive additional pay, which is often at a rate of one and a half times their regular hourly wage. This regulation is designed to ensure that employees are fairly compensated for their extra hours of work, encouraging employers to manage work hours effectively and avoid overworking staff without appropriate remuneration.

The other choices refer to different forms of compensation that do not pertain specifically to the definition of overtime pay. For instance, paid time off involves compensation for time not worked, holiday work may come with special pay rates, and performance bonuses reward employees for achieving specific goals or exceeding expectations, but do not directly relate to hours worked beyond the established workweek.