Overtime Pay

Overtime Pay

What is the federal overtime law?

The federal law governing overtime is the Fair Labor Standards Act (FLSA). It entitles nonexempt employees to overtime wages when they work more than 40 hours in a workweek. For this purpose, a workweek is seven consecutive 24-hour periods. The premium overtime pay rate is one and one-half times the regular pay rate, commonly called “time and a half.”

Overtime Pay May Not Be Waived: The overtime requirement may not be waived by agreement between the employer and employees. An agreement that only 8 hours a day or only 40 hours a week will be counted as working time also fails the test of FLSA compliance. An announcement by the employer that no overtime work will be permitted, or that overtime work will not be paid for unless authorized in advance, also will not impair the employee's right to compensation for compensable overtime hours that are worked.

Overtime rules by state vs. federal overtime law

Some states have their own employment and overtime laws, while others follow the FLSA. When state and federal overtime laws differ, employers generally must follow the law most favorable to the employee. For state overtime laws, please view our Knowledge Base article Overtime Pay by State.


Forced overtime work

Employers generally may mandate overtime for their employees if they have a legitimate business reason for it and adhere to the following:

  • State or federal laws that limit the number of hours employees can safely work must not be violated.
  • Employees who have a disability or a sincerely held religious belief that would prevent them from working mandatory overtime must be reasonably accommodated.
  • Mandatory overtime policies must not conflict with collective bargaining agreements.

Aside from these exceptions, employees who refuse to work the extra hours can be disciplined and even terminated.


Is not paying overtime work illegal?

Yes. Under both federal and state law, employers who fail or refuse to pay nonexempt employees the required overtime premium are subject to civil and criminal penalties.

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