Based on FLSA federal overtime rules (40-hour threshold). Some states have daily overtime rules that may differ.
What is the FLSA?
The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, and other employment standards. Under FLSA:
Non-exempt employees must receive overtime pay
Overtime kicks in after 40 hours per workweek
Overtime rate is at least 1.5x the regular rate
Employers cannot waive overtime requirements
Exempt vs Non-Exempt Employees
Not all employees qualify for overtime pay:
Non-exempt: Eligible for overtime pay under FLSA. Typically hourly workers and salaried employees earning below the salary threshold.
Exempt: Not eligible for overtime. Must meet salary threshold ($35,568/year in 2024) AND perform specific executive, administrative, or professional duties.
Overtime Pay = Overtime Hours x Hourly Rate x Multiplier
Frequently Asked Questions
Common questions about overtime pay and FLSA
What are the FLSA overtime rules? −
Under the Fair Labor Standards Act, non-exempt employees must receive overtime pay of at least 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. A workweek is any fixed, recurring period of 168 hours (7 consecutive 24-hour periods). Employers cannot average hours across multiple weeks unless a specific exemption applies.
Are exempt employees eligible for overtime? +
No. Exempt employees are not entitled to overtime pay under FLSA. To be classified as exempt, an employee must generally earn at least $35,568 per year on a salary basis and perform executive, administrative, professional, computer, or outside sales duties as defined by the Department of Labor.
Do state overtime laws differ from FLSA? +
Yes. Some states have stricter overtime rules. For example, California requires overtime for hours worked over 8 in a single day (daily overtime), not just over 40 in a week. Alaska, Colorado, and Nevada also have daily overtime provisions. When both state and federal law apply, the employer must follow whichever provides the greater benefit to the employee.
Can salaried employees get overtime pay? +
Yes. Being salaried does not automatically make an employee exempt from overtime. If a salaried employee earns below the FLSA salary threshold ($35,568/year) or does not perform exempt duties, they are classified as non-exempt and must receive overtime pay. To calculate their overtime rate, divide the weekly salary by the number of hours the salary is intended to cover (typically 40).
