US · Fair Labor Standards Act 1938
US Overtime Law 2026
The Fair Labor Standards Act (FLSA) requires most US employers to pay non-exempt employees at least 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. Exemptions are wide — but many employers misclassify workers as exempt to avoid paying overtime.
Who must be paid overtime?
All employees are entitled to overtime unless they fall within a specific FLSA exemption. The most common exemptions — called the "white collar exemptions" — cover executive, administrative, and professional employees who:
- Are paid on a salary basis of at least $684/week ($35,568/year)
- Primarily perform executive, administrative, or professional duties as defined by DOL regulation
Both the salary test AND the duties test must be met. An employee who earns $100,000/year but primarily performs manual labor is still non-exempt and entitled to overtime. Conversely, an employee who primarily performs managerial duties but earns $600/week is non-exempt because they fall below the salary threshold.
How overtime is calculated
Overtime is calculated on a workweek basis — a fixed, regularly recurring period of 7 consecutive 24-hour periods. Hours cannot be averaged over two weeks. If you work 50 hours one week and 30 the next, you are owed 10 hours of overtime for week 1, even though the average is 40.
The overtime rate is 1.5× your "regular rate of pay." The regular rate includes most forms of compensation — hourly rate, salary, piecework earnings, shift differentials, and non-discretionary bonuses — but excludes gifts, overtime premiums themselves, and certain other payments.
State overtime laws
Several states have overtime rules that are more generous than federal law. California requires daily overtime (1.5× for hours over 8/day; 2× for hours over 12/day) and double time on the seventh consecutive day of a workweek. Nevada requires overtime for hours over 8/day for employees earning under 1.5× the state minimum wage. When state law is more protective than federal law, the state law applies.
Recovering unpaid overtime
If your employer has not paid overtime you are owed, you can:
- File a complaint with the DOL Wage and Hour Division (free, anonymous)
- File a private lawsuit under FLSA — you can recover back wages, an equal amount in liquidated damages, and attorney's fees
- File with your state labor agency (often has faster resolution)
The statute of limitations is 2 years (3 years if the violation was willful). Class or collective actions are common for overtime claims affecting multiple workers.
Common questions
What is the Fair Labor Standards Act (FLSA)?
The FLSA is the primary US federal law governing minimum wage, overtime pay, recordkeeping, and child labour standards. It applies to most private and public sector employers. Minimum wage: $7.25/hr federal (many states are higher). Overtime: 1.5× for hours over 40 per week.
How does overtime law work in the US?
Under the FLSA, non-exempt employees must receive 1.5× their regular rate for hours worked over 40 in a workweek. Overtime is calculated weekly — you cannot average over two weeks. Many states have additional daily overtime rules.
Are salaried employees exempt from overtime in the US?
Not automatically. Salaried employees are only overtime-exempt if they meet both a salary threshold ($684/week minimum) AND a duties test — executive, administrative, or professional roles. Being salaried alone does not make you exempt.