Overtime

The short version

Overtime pay means you get paid more for working more than 40 hours in a workweek. The federal law setting these rules is the Fair Labor Standards Act (FLSA). It's important to know if you're eligible for overtime and how it's calculated. This lesson explains the basics of federal overtime rules and how they might affect you.

The law this is built on

Every point below comes from the authority named next to it. Verify the current text before relying on it.

29 U.S.C. § 207(a)(1)
This section states that employers generally cannot employ you for a workweek longer than 40 hours unless they pay you at a rate of at least one and one-half times your regular rate of pay for the extra hours.
Why it matters: This is the core rule that requires most employers to pay extra for hours worked over 40 in a week.
29 U.S.C. § 207(e)
This section defines the 'regular rate' of pay to include all remuneration for employment paid to, or on behalf of, the employee, with some exceptions.
Why it matters: Understanding your 'regular rate' is crucial because it's the basis for calculating your overtime pay.
29 U.S.C. § 207(a)(2)
This section applies to certain employees in specific industries like hospitals or residential care, allowing a different overtime calculation based on a 14-day period.
Why it matters: While less common, some jobs have specific rules for overtime pay that differ from the standard 40-hour workweek.

Words you need to know

Workweek: A workweek is a fixed and regularly recurring period of 168 hours (seven consecutive 24-hour periods). It doesn't have to match the calendar week.
Regular Rate of Pay: Your regular rate of pay includes all pay you receive from your employer, including wages, commissions, non-discretionary bonuses, and shift differentials. This rate is used to calculate your overtime pay.
Overtime Pay: This is pay at a rate of at least one and one-half times your regular rate of pay for all hours worked over 40 in a workweek, according to 29 U.S.C. § 207(a)(1).
Exempt Employee: Some employees are 'exempt' from overtime pay requirements, meaning they don't get time-and-a-half for extra hours. This usually applies to certain executive, administrative, or professional roles, as well as outside sales employees, who meet specific salary and duties tests.
Non-Exempt Employee: If you are 'non-exempt,' you are covered by overtime rules and must be paid overtime for hours worked over 40 in a workweek.
Hours Worked: This generally includes all time you are required to be on duty, on the employer's premises, or at a prescribed workplace. This can include waiting time, on-call time, and some training time.

Your rights

✓You have the right to be paid at least minimum wage for all hours worked.
✓If you are a non-exempt employee, you have the right to be paid 1.5 times your regular rate of pay for hours worked over 40 in a workweek, as per 29 U.S.C. § 207(a)(1).
✓Your regular rate of pay must include most types of compensation, not just your hourly wage, when calculating overtime.
✓You have the right to keep accurate records of your hours worked.
✓Your employer cannot retaliate against you for inquiring about or asserting your rights to overtime pay.

How the process actually works

1
Determine Your Workweek
Set by your employer
Your employer defines your workweek as a fixed, recurring 7-day period. This is important because overtime is calculated based on hours worked within *that specific workweek*, not across pay periods or multiple weeks.
2
Track Your Hours
Throughout each workweek
Keep a precise record of all hours you work each day. This includes actual working time, required meetings, training, and sometimes even travel time.
3
Calculate Total Hours Worked
At the end of each workweek
Add up all the hours you worked within that defined workweek. For federal overtime purposes, you must be paid for all hours worked, even if your employer didn't approve them beforehand.
4
Identify Overtime Hours
At the end of each workweek
If your total hours worked for the workweek are more than 40, those extra hours are considered overtime hours.
5
Determine Your Regular Rate
At the end of each workweek
Calculate your regular rate of pay. This includes your hourly wage plus most other forms of compensation like non-discretionary bonuses and commissions, divided by the total hours worked in that week.
6
Calculate Overtime Pay
When payroll is processed
Multiply your regular rate by 1.5. Then, multiply that amount by the number of overtime hours you worked. This is your overtime pay for the week.

Deadlines that can end your case

Federal Statute of Limitations
2 years
You generally have two years from the date the overtime pay was due to file a lawsuit for unpaid overtime. This is extended to three years if the employer's violation was willful.
State Statute of Limitations
Varies by state
Many states have their own statute of limitations, which can sometimes be longer than the federal limit. You should check your state's laws for specific deadlines.

Costly mistakes

✕Assuming you are 'salaried' means you are exempt from overtime. Being paid a salary does not automatically make you exempt; you must meet specific duties tests too.
✕Not tracking your actual work hours. If you don't keep records, it's harder to prove unpaid overtime.
✕Believing your employer can 'average' your hours over multiple weeks to avoid overtime. Federal law requires overtime to be calculated on a weekly basis, according to 29 U.S.C. § 207(a)(1).
✕Agreeing to 'comp time' instead of overtime pay if you work for a private employer. Private employers generally cannot offer compensatory time off instead of overtime pay, as per 29 U.S.C. § 207(o).
✕Not including all forms of pay (like non-discretionary bonuses) when calculating your regular rate for overtime. This can lead to underpayment.
✕Failing to understand your state's overtime laws, which may offer greater protection than federal law.

Your checklist

Understand if you are an 'exempt' or 'non-exempt' employee under federal and state law.
Keep detailed records of all hours you work each day, including start and end times and any breaks.
Familiarize yourself with your employer's defined workweek.
Regularly check your pay stubs to ensure overtime hours are correctly identified and paid.
Understand how your 'regular rate of pay' is calculated, especially if you receive bonuses or commissions.
If you believe your overtime pay is incorrect, first discuss it with your supervisor or HR department.
If discussions don't resolve the issue, consider consulting with your state labor department or a legal professional.

Common questions

Does my employer have to pay me overtime if I work more than 8 hours in a day?

The federal law (29 U.S.C. § 207) generally requires overtime pay only for hours worked over 40 in a workweek, not for exceeding 8 hours in a day. However, some states have their own laws that require daily overtime. You should check your state's specific rules.

What if I'm paid a salary? Do I still get overtime?

Being paid a salary does not automatically mean you are exempt from overtime. To be exempt, you must meet specific tests related to your job duties and earn at least a certain salary threshold. If you don't meet these tests, you are still entitled to overtime pay even if paid a salary.

Can my employer just give me time off later instead of paying me overtime?

For most private-sector employers, no. Federal law (29 U.S.C. § 207(o)) requires private employers to pay overtime in cash wages, not 'comp time.' Comp time is generally only allowed for government employees and under specific conditions.

What is included in my 'regular rate of pay' for overtime calculations?

Your 'regular rate' includes almost all forms of pay you receive from your employer. This typically covers your hourly wage, non-discretionary bonuses, commissions, and shift differential pay, as described in 29 U.S.C. § 207(e).

What if my employer claims I didn't get approval for overtime hours?

Under federal law, your employer generally must pay you for all hours you actually work, even if those hours were not pre-approved, according to Department of Labor interpretations. If they knew or should have known you were working, they must pay you.

How this changes by state

Overtime rules can vary significantly by state. While the federal FLSA sets a baseline, many states have their own laws that offer greater protection to employees. For example, some states require overtime pay for hours worked over 8 in a day, or for working seven consecutive days in a workweek, regardless of the total weekly hours. Some states also have higher minimum wage rates, which can impact the 'regular rate' calculation. To find your state's specific rules, you should visit your state's Department of Labor website or consult with a local employment law professional.

When you need a lawyer

You should consider contacting a lawyer if your employer refuses to pay you overtime, misclassifies you as an exempt employee, retaliates against you for asking about overtime, or if you have complex pay arrangements (like commissions or fluctuating workweeks) and suspect your overtime is miscalculated. A lawyer can help you understand your rights, negotiate with your employer, or represent you in a claim.

Do this today

→Review your employment status (exempt vs. non-exempt) and job duties to understand your federal overtime eligibility.
→Start keeping a personal log of your daily work hours, including start, end, and break times.
→Check your state's Department of Labor website for any state-specific overtime laws that might apply to you.
→If you have questions or concerns, speak with your employer's HR department or supervisor first.

This lesson is legal information for educational purposes only, based on 29 U.S.C. § 207. It is not legal advice and does not create an attorney-client relationship.