The Fair Labor Standards Act (FLSA) is a fundamental piece of U.S. labor law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards. One of the most important protections under the FLSA is the right to overtime pay for eligible employees who work more than 40 hours in a workweek. This detailed guide explains how overtime pay works, who is entitled to it, wage rights under the FLSA, exemptions, and what employees should know to protect their rights.
What Is the Fair Labor Standards Act (FLSA)?
Enacted in 1938, the FLSA regulates labor standards in private and public sector employment, aiming to protect workers from unfair pay and excessive working hours. The law is enforced by the Wage and Hour Division (WHD) of the U.S. Department of Labor.
Understanding Overtime Pay Under the FLSA
The FLSA requires covered employers to pay non-exempt employees overtime pay at a rate of one and one-half times their regular rate of pay for all hours worked over 40 in a single workweek.
Who Is Eligible for Overtime Pay?
Generally, most employees covered by the FLSA are entitled to overtime pay unless they meet specific exemption criteria. Eligibility depends on the employee’s job duties, salary level, and how they are compensated.
Common Overtime Exemptions
The FLSA exempts certain employees from overtime, including:
- Executive, Administrative, and Professional Employees: Often referred to as “white-collar exemptions,” these workers must meet salary and duties tests.
- Outside Sales Employees: Those primarily engaged in sales activities outside the employer’s place of business.
- Certain Computer Professionals: Meeting specific job duties and compensation requirements.
- Highly Compensated Employees: Meeting salary thresholds and performing office or non-manual work.
- Certain Seasonal and Agricultural Workers: Subject to different rules.
Calculating Overtime Pay
Overtime pay is based on the employee’s regular rate of pay, which includes hourly wages, salary, bonuses, and other compensation. The formula is:
Overtime Pay Rate = 1.5 × Regular Hourly Rate
For example, if an employee earns $20 per hour, their overtime rate is $30 per hour for hours worked beyond 40 in a week.
Workweek Definition
A workweek is any fixed and recurring period of 7 consecutive 24-hour days established by the employer. It does not have to coincide with the calendar week and can start on any day and time.
Minimum Wage Protections
The FLSA also establishes the federal minimum wage, currently $7.25 per hour, although many states have higher minimum wages. Employees must be paid at least the applicable minimum wage for all hours worked.
Recordkeeping Requirements
Employers must maintain accurate records of hours worked and wages paid to employees. This includes:
- Employee’s personal information
- Hours worked each day and total hours each workweek
- Wages paid, including regular and overtime rates
- Deductions and additions to wages
Common Violations and How to Protect Your Rights
Workers should be aware of potential FLSA violations such as unpaid overtime, misclassification as exempt, off-the-clock work, and improper deductions. To protect your rights:
- Keep detailed records of hours worked and wages received
- Understand your job classification and exemption status
- Report violations to your employer or human resources
- File a complaint with the U.S. Department of Labor if necessary
- Seek legal advice for persistent wage disputes
Filing a Complaint With the Department of Labor
If you believe your employer violated the FLSA, you can file a complaint with the Wage and Hour Division (WHD). Complaints can be filed confidentially, and the WHD may investigate and enforce compliance.
Contact information:
- Website: dol.gov/whd/contact/complaints
- Phone: 1-866-4US-WAGE (1-866-487-9243)
State Overtime Laws
Many states have their own overtime laws that may provide broader protections than the federal FLSA, including lower thresholds for overtime or additional exempt categories. It is important to know both federal and state laws that apply to your employment.
Resources for More Information
- U.S. Department of Labor – Overtime Pay
- Fair Labor Standards Act (FLSA) Overview
- Nolo – Overtime Pay Rights
- SHRM – Overtime and Wage Laws
Conclusion
Overtime pay and wage rights under the FLSA are designed to ensure fair compensation for employees working beyond standard hours. Knowing who is eligible, how overtime is calculated, and your rights as a worker empowers you to advocate for fair treatment. If you suspect violations, taking prompt action and utilizing available resources can help protect your wages and workplace rights.
