Understanding Federal Overtime Law: The FLSA Foundation
The Fair Labor Standards Act (FLSA) establishes standards for overtime pay in the U.S., requiring that non-exempt employees receive overtime at a rate of 1.5 times their regular pay for hours worked beyond 40 in a workweek. A workweek is defined as a fixed 168-hour period, and averaging hours over weeks is not permitted. The regular rate includes all earnings such as wages and commissions, and must be at least $7.25 per hour.
Exempt employees, such as those in executive or administrative roles, are not covered by these overtime rules. The exemption threshold is $684 per week, with proposed increases to $844 and $1,128 in 2024 and 2025, respectively, though these are subject to legal challenges. While federal law does not require double-time pay, some states, like California, do under specific circumstances.