Overtime

Unless specifically exempt, employees covered by the FLSA must receive pay for hours worked in excess of 40 in a workweek at a rate not less than one and one-half their regular rates of pay. This is referred to as "overtime" pay. The Fair Labor Standards Act of 1938 (FLSA), requires employers to pay their non-exempt employees, one and one-half times their regular rate of pay for all hours worked per week in excess of 40 hours.  An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work. 

Commonly Asked Questions

Who is entitled to Overtime Pay under the FLSA?

Most employees covered by the FLSA must be paid the minimum wage and at least one and one-half times their regular rate of pay for any hours they work beyond 40 in a workweek. An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work.

The FLSA does, however, exempt certain kinds of covered employees from the minimum wage and overtime requirements, including bona fide executive, administrative, and professional employees who qualify for the so-called white collar (or "EAP") exemptions.

Under the FLSA, you have worked overtime if you work more than 40 hours in a week. Some states calculate overtime differently, however. For example, California and a few other states have a daily overtime standard, which makes employees eligible for overtime once they have worked eight hours in a day, even if they don't work more than 40 hours in a week.

Salary overtime pay under FLSA

Under the FLSA, you have worked overtime if you work more than 40 hours in a week and are paid on a salary basis less than a specified weekly amount then you qualify for Overtime.

How is overtime pay calculated?

If you have worked overtime hours, you are entitled to the overtime premium for those extra hours. To determine the overtime premium, you must calculate your regular rate of pay. This includes all compensation you receive for your employment, such as wages, commissions, performance-based bonuses and prizes, and shift differentials. It doesn't include money or items you receive that aren't intended as part of your compensation, such as expense reimbursements, gifts from your employer (such as a holiday bonus), or the value of employee perks, such as a parking space.

You are entitled to a 50% premium for every overtime hour you work. For those hours, you must be paid time and a half: 150% of your regular rate of pay.

Does the FLSA cover specific days?

The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime hours are worked on such days.  Employers often misclassify employees as “salaried”  and thereby deny them their legal right to overtime.

The FLSA, with some exceptions, requires bonus payments to be included as part of an employee’s regular rate of pay in computing overtime.

The Act applies on a workweek basis. An employee's workweek is a fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods. It need not coincide with the calendar week, but may begin on any day and at any hour of the day. Different workweeks may be established for different employees or groups of employees. Averaging of hours over two or more weeks is not permitted. Normally, overtime pay earned in a particular workweek must be paid on the regular payday for the pay period in which the wages were earned.