Who Is Entitled to Overtime?
To be exempt from overtime (meaning your employer doesn't have to pay it), an employee must meet ALL three criteria:
- Earn at least $684/week ($35,568/year) — the FLSA salary threshold
- Be paid on a salary basis (not docked for partial-day absences)
- Perform exempt job duties: executive, administrative, professional, outside sales, or computer employee
If any criterion is not met, the employee is non-exempt and entitled to overtime. Job title alone doesn't determine status — actual duties do.
Misclassification is common
Many salaried employees are incorrectly classified as exempt. If you perform mostly routine work and earn under $35,568/year, you likely qualify for overtime regardless of your title.
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How to Calculate Overtime Pay
Formula: Regular rate × 1.5 × overtime hours
| Regular Rate | Hours Worked | OT Hours (over 40) | OT Pay | Total Weekly Pay |
|---|---|---|---|---|
| $15/hr | 45 hrs | 5 hrs | $112.50 | $712.50 |
| $20/hr | 50 hrs | 10 hrs | $300.00 | $1,100.00 |
| $25/hr | 48 hrs | 8 hrs | $300.00 | $1,300.00 |
Key FLSA Overtime Rules
- Overtime is calculated per workweek — employers cannot average two weeks together
- A workweek is any fixed, recurring 7-day period (set by employer)
- There is no federal daily overtime requirement
- Only hours worked count — paid vacation, holidays, and sick leave do not count toward 40
- Overtime must be paid on the regular payday for the period it was earned
States with Daily Overtime Rules
- California: OT after 8 hrs/day; double time after 12 hrs/day or 7th consecutive workday
- Alaska: OT after 8 hrs/day or 40 hrs/week
- Nevada: OT after 8 hrs/day if earning under 1.5x minimum wage
- Colorado: OT after 12 hrs/day or 40 hrs/week
When state law provides more overtime protection than federal law, the state standard applies.