How Overtime Pay Works: Your Rights Under FLSA
A complete guide to overtime pay rules under the Fair Labor Standards Act — who qualifies, how time-and-a-half is calculated, exempt vs non-exempt status, and state overtime laws.
Overtime pay is one of the most misunderstood areas of employment law. Many workers who should be receiving it aren't — and some employers take advantage of that confusion. This guide covers everything you need to know.
The Basic Rule: 1.5× for Hours Over 40
Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive at least 1.5× their regular rate of pay for every hour worked beyond 40 in a workweek. This is calculated weekly — not daily, not monthly, not by pay period. Use our overtime pay calculator to see exactly what you're owed.
Who Is Non-Exempt?
Most hourly workers are automatically non-exempt. Salaried workers earning under $684/week ($35,568/year) are also non-exempt. Above that threshold, exemption depends on job duties — executives, administrators, professionals, computer employees, and outside salespeople can be exempt even if their salary is higher.
The "Regular Rate" Is Not Just Your Hourly Rate
This is where many employers get it wrong. The regular rate includes your base hourly rate plus shift differentials, non-discretionary bonuses, and commissions. It does not include overtime pay itself, vacation pay, sick pay, or holiday gifts. For nurses, this is particularly important — shift differentials must be included when calculating overtime, as confirmed by the FLSA. Our nurse salary calculator handles this correctly.
State Overtime Laws
- California: Daily overtime (1.5× over 8 hrs/day; 2× over 12 hrs/day and 7th consecutive day)
- Alaska & Nevada: Daily overtime for hours over 8 in a workday
- Colorado: Overtime for hours over 12 in a day or 40 in a week, whichever triggers first
- All other states: Federal FLSA rules apply (40-hour weekly threshold)
What to Do If You're Not Being Paid Overtime
Document your hours carefully. File a wage claim with your state labor board or the US Department of Labor's Wage and Hour Division. Under FLSA, you may recover up to 2–3 years of back overtime pay plus attorney fees. The statute of limitations is 2 years for non-willful violations, 3 years for willful ones.