Overtime pay is one of the most misunderstood aspects of U.S. labor law. The Fair Labor Standards Act (FLSA) sets federal rules requiring employers to pay time-and-a-half for hours worked over 40 in a single workweek. However, not all employees are entitled to overtime, and many workers miss out on compensation they’re legally owed.
Who Is Entitled to Overtime?
Under FLSA, non-exempt employees must be paid overtime (1.5 times their regular hourly rate) for any hours worked beyond 40 in a week. This includes most hourly workers and many salaried employees earning less than a certain threshold.
Who Is Exempt?
Some employees are exempt from overtime laws, typically because of their job duties and salary. Common exempt categories include:
- Executive
- Administrative
- Professional
- Outside sales
- Certain computer-related positions
As of 2025, the salary threshold for exemption is around $43,888 annually, but this can vary based on federal updates and state-specific laws.
Common Employer Violations:
- Misclassifying employees as exempt.
- Not counting certain work activities as paid time (e.g., opening duties).
- Failing to pay for “off-the-clock” work, such as answering emails at home.
- Offering “comp time” instead of overtime (not legal in private sector jobs).
How Overtime Is Calculated:
- Example: A non-exempt employee earns $20/hour and works 45 hours in a week.
- Regular pay = 40 × $20 = $800
- Overtime pay = 5 × $30 = $150
- Total = $950
State Laws May Differ:
States like California have stricter overtime rules, including daily overtime after 8 hours of work and double time for 12+ hour shifts. Always check your local labor laws for more protections.
What to Do If You’re Owed Overtime:
- Keep records of hours worked.
- Contact your HR department first.
- File a complaint with the Department of Labor (DOL).
- Consult an employment attorney for legal options.
Conclusion:
Understanding overtime laws empowers workers to demand fair compensation. If you suspect you’re being denied lawful wages, take action—labor laws are in place to protect you.