Understanding overtime pay rules (FLSA basics)

Written by NotALawyer Legal AI · Reviewed by External Legal AI · Published April 27, 2026 · Last reviewed June 26, 2026

Federal law (the Fair Labor Standards Act, or FLSA) makes most employers pay non-exempt workers time-and-a-half for hours over 40 in a week. What decides if you qualify is your actual job duties — not your title, and not whether you're paid hourly or salary. Here's how it works in practice.

Overtime kicks in past 40 hours a week

The federal rule is 1.5x your regular pay rate for every hour over 40 in one workweek. Some states add daily overtime on top — California pays it past 8 hours in a day. Many states just follow the federal weekly rule, so check your own state's law.

Exemptions are narrow

The main exemptions cover executive, administrative, professional, computer, and outside-sales roles. Each has a specific duties test you have to meet. Calling someone a "manager" or putting them on salary does not make them exempt.

There's also a salary floor

Even when the duties qualify, an exempt employee has to earn above the federal salary threshold — currently $684 a week for most exemptions. Anyone paid below that is non-exempt no matter what their duties are.

Off-the-clock work still counts

Working through lunch, answering emails after hours, driving between job sites — much of this can count as paid time under the FLSA. An employer cannot dodge overtime by simply not recording the hours.

You can look back two years (sometimes three)

You can usually recover unpaid overtime going back 2 years — 3 years for willful violations — plus liquidated damages equal to what you were shorted, plus attorney's fees. Claims go to the U.S. Department of Labor or federal court.

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