Am I Owed Overtime Pay? Understanding Your Rights Under the Fair Labor Standards Act FLSA

Ideal for employers and HR professionals, this members-only toolkit offers essential information on eligibility, salary thresholds, and job duties to ensure compliance and effective workforce management. The rule does not affect overtime requirements for workers who are paid hourly. Where non-cash payments are made to employees in the form of goods or facilities, the reasonable cost to the employer or fair value of such goods or facilities must be included in the regular rate. If you believe an employer has violated the FLSA, please continue through the FLSA Advisor and review the information concerning exemptions, recordkeeping and hours of work prior to contacting the nearest Wage and Hour District Office. Please consult the FLSA Child Labor Advisor prior to contacting the nearest Wage and Hour District Office for further information concerning the child labor provisions of the FLSA.

Pay Limitations

• The FLSA, with some exceptions, requires bonus payments to be included as part of an employee’s regular rate of pay in computing overtime.
• In other words, it is basically a four-year window for eligible taxpayers to benefit.
• It is a violation of the FLSA to fire, or in any other manner, discriminate against an employee for filing a complaint or for participating in a legal proceeding under this law.
• Employees who do not meet the exemption requirements are “non-exempt” and must receive overtime pay for hours worked over 40 in a workweek.
• As of November 15, 2024, six states (Alaska, California, Colorado, Maine, New York, and Washington) have minimum salary requirements for exemption that already exceed $684 for one or more of the exemptions.

Keep in mind that state rules may prohibit employers from using bonuses to satisfy part of the salary requirement. Therefore, to maintain the state exemption in these locations, employers must satisfy the state’s requirement with a salary alone. Overtime pay is a critical component of fair compensation practices in the United States, ensuring that employees receive proper wages for hours worked beyond a standard workweek. Governed by the Fair Labor Standards Act (FLSA), overtime laws protect workers from excessive workloads, unpaid labor, and unfair compensation practices. Before we get into what’s changed, let’s quickly touch on how overtime works. Department of Labor, under the FLSA (Fair Labor Standards Act), most workers in the United States must be paid overtime for hours worked over 40 in a workweek at a rate of at least one and a half times their regular pay.

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The U.S. Department of Labor said Thursday it intends to revisit its overtime regulations under the Fair Labor Standards Act but did not disclose a deadline by which to issue an update on the subject, according to a press release. The agency said it intends to revisit its overtime regulations but did not disclose a deadline by which to issue an update on the subject. Please consult a qualified professional for financial, legal, or health advice specific to your circumstances. This exemption is not automatic based solely on high pay; the employee must still regularly perform at least one identifiable exempt duty.

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.

Frequently asked questions employers have about no tax on overtime

Overall, it seems that fans and analysts alike enjoy college football not ending in a tie for the most part, but very few are happy with the alternating two-point conversions. The popular college sports news site said that the «two-point conversion shootout undermines the integrity of traditional college football.» CDA will share the IRS’s guidance in the newsroom and weekly member newsletter, Inside California Dentistry, when it’s available.

However, it’s tightly structured, temporary, and not universally accessible. The employer was required to send all taxes that had been withheld from the employees to the tax authorities and submit the tax and the employee’s income information on Form 941 and the employee’s W-2 form. Besides, nonexempt workers are those who can claim overtime pay under the FLSA (Fair Labor Standards Act). However, as every extra hour worked usually results in additional income tax, the financial incentive is muted. To avoid FLSA violations and legal penalties, businesses must implement strong payroll policies and accurate time tracking systems.

Wages and the Fair Labor Standards Act

Many fans believe that college football is a better product than the NFL. The reasons typically cited are due to the program’s traditions, personal connections to the school’s flsa overtime rules playing, and the overtime rules. This measure promises to deliver much-needed tax relief to many American workers by allowing them to exclude a portion of their overtime compensation from federal taxable income. DOL published its full Spring 2025 regulatory agenda via the White House Office of Management and Budget’s regulatory affairs website after apparently removing an earlier version of the list published last month. The latest list retains efforts identified by DOL in August — such as proposed rules on the FLSA’s joint-employer and worker classification standards — as well as a separate section on long-term regulatory projects including an overtime rule.

• Similar to the tips deduction, for every $1,000 of income above the threshold, the deduction is reduced by $100, ensuring benefits target middle and lower-income workers.
• If a business or organization qualifies for enterprise coverage, all of its employees are generally covered by the FLSA’s minimum wage and overtime provisions, unless a specific individual exemption applies.
• The latest list retains efforts identified by DOL in August — such as proposed rules on the FLSA’s joint-employer and worker classification standards — as well as a separate section on long-term regulatory projects including an overtime rule.

Effective immediately, the salary level test amount for executive, administrative and professional employees returns to $684 per week ($35,568 annually). Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive time-and-a-half pay for hours worked over 40 in a workweek. Understanding how overtime pay works, who qualifies, and how it is calculated is essential for both employers and employees. This guide breaks down the key provisions of the FLSA overtime regulations to ensure compliance and avoid costly legal penalties. Employers who willfully or repeatedly violate the minimum wage or overtime pay requirements are subject to a civil money penalty of up to $1,000 for each such violation. Knowing your regular rate is only half the equation for calculating overtime.

Fact Sheet #23: Overtime Pay Requirements of the FLSA

If an employee works for the same employer in two different jobs or at two different locations within the same workweek, the employer must combine all hours worked in that week to determine if overtime is due. Management has a duty to exercise control and prevent work they do not want performed; simply having a rule against unauthorized work is not enough if the employer knows or should know it’s happening. This “suffered or permitted” standard places a significant responsibility on employers to monitor work and ensure all time is captured, as they can be liable for unpaid wages even for work they didn’t explicitly authorize. Compliance with FLSA overtime rules protects businesses from lawsuits, financial penalties, and damage to their reputation.

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Crucially, “hours worked” also includes any additional time the employee is “suffered or permitted” to work. This means that if an employer knows or has reason to believe that an employee is performing work (even if it wasn’t requested or authorized), that time generally counts as hours worked and must be paid for. We will explore specific examples of what counts as hours worked in more detail in a later section.

In one week, the employee works 50 hours resulting in 10 hours of overtime. The overtime pay rate under FLSA is $25 x 1.5 for a total of $37.50. However, Patriot Software mentions that although payroll reporting will remain the same in 2025, the correct overtime record will be necessary for employees who want to take the federal overtime tax deduction on their 2025 returns. DOL said its next action on overtime pay eligibility standards is undetermined and similarly did not provide a firm date on when it would take action.