Many employees in the U.S. are entitled to overtime pay, but confusion about who qualifies and how it works is common. Understanding your rights under the Fair Labor Standards Act (FLSA) helps ensure you’re paid fairly for your time and effort.
What Is Overtime Pay?
Overtime pay is compensation earned for hours worked beyond 40 hours in a single workweek. The federal law requires non-exempt employees to be paid at least 1.5 times their regular hourly rate for every hour over 40.
Who Qualifies for Overtime?
Most hourly workers are non-exempt and eligible for overtime. However, some salaried employees are also entitled to overtime unless they fall under certain exemptions.
You’re likely non-exempt if you:
- Are paid hourly
- Earn less than $684/week ($35,568/year as of 2025)
- Don’t have executive, administrative, or professional duties
Jobs often exempt from overtime include:
- Executives and managers
- Outside sales professionals
- Highly compensated employees (earning over $107,432/year)
Common Employer Violations
- Misclassifying workers as exempt
- Offering “comp time” instead of overtime pay
- Failing to count hours worked off the clock
- Not tracking time for remote work
How to Calculate Overtime
Let’s say your hourly wage is $20 and you work 45 hours in one week:
- Regular pay: 40 hours × $20 = $800
- Overtime: 5 hours × $30 = $150
- Total pay = $950
Salaried non-exempt employees must also be paid overtime, calculated based on their regular hourly rate derived from their salary.
What If You’re Not Paid Overtime?
You have several options:
- Report it internally: Talk to HR or your supervisor.
- File a complaint with the U.S. Department of Labor (DOL)
- Consult an employment attorney: You may be able to file a lawsuit for unpaid wages and damages.
Retaliation for reporting unpaid overtime is illegal.
State Laws May Offer More
Some states, like California, have stricter overtime rules, including daily overtime for work beyond 8 hours in a day.
Conclusion
Understanding overtime laws empowers you to ensure fair compensation. If your employer isn’t paying what’s legally owed, you have the right to take action.