Overtime Pay in the United States: When Your Employer Owes You More
Overtime pay in the United States is governed mainly by the Fair Labor Standards Act (FLSA), which requires most covered employees to receive at least one and one-half times their regular rate for hours worked over 40 in a workweek. Yet many workers are underpaid because employers misclassify them, miscalculate the regular rate, or require off-the-clock work. Knowing the rules can help you recover wages you are owed.
This guide explains who qualifies for overtime, how it is calculated, common violations, and how to claim unpaid overtime. It is general information, not legal advice for your case.
This article provides general legal information only. It is not legal advice, and it does not create a lawyer-client relationship. Wage law varies by state, so consult a licensed employment attorney about your case.
Who Qualifies for Overtime
Most hourly and many salaried employees are non-exempt, meaning they qualify for overtime. Exempt employees, who do not qualify, must meet specific tests for executive, administrative, professional, computer, or outside sales roles, including a salary threshold and duties tests. A job title alone does not make a worker exempt — actual duties control.
Some states have stricter rules than federal law, including daily overtime thresholds and higher salary thresholds. When state and federal law differ, the rule more favorable to the employee generally applies.
How Overtime Pay Is Calculated
Overtime is calculated per workweek, not per pay period. Hours over 40 in a single workweek must be paid at one and one-half times the regular rate, which includes not just hourly wages but also most bonuses, commissions, shift differentials, and non-discretionary payments, divided by total hours worked.
Common errors include paying overtime at the base hourly rate only, excluding bonuses from the regular rate, averaging hours across two weeks to avoid overtime, and treating salaried workers as automatically exempt from overtime.
Common Overtime Violations
Common violations include misclassifying employees as independent contractors or exempt managers, requiring work before clocking in or after clocking out, automatically deducting meal breaks that were actually worked, and paying a flat salary or day rate without overtime for hours over 40.
Employers may also violate the law by retaliating against workers who complain about pay. Retaliation for asserting wage rights is itself unlawful under federal and many state laws.
What to Do If You Are Owed Overtime
Start by keeping your own records: hours worked, pay stubs, schedules, emails about work expectations, and any off-the-clock time. Compare your records with your employer's records, which you can request, and note discrepancies.
You can raise the issue with your employer in writing, file a complaint with the U.S. Department of Labor's Wage and Hour Division or your state labor agency, or consult an employment attorney. Many overtime cases are handled on contingency, and successful claims can recover back wages, liquidated damages equal to the unpaid amount, and attorney's fees.
Time Limits for Claims
Federal overtime claims generally must be filed within two years, or three years for willful violations, and each paycheck that underpays overtime can restart the clock for that period. State laws may allow longer periods or additional damages, so do not assume an old claim is lost without checking.
Because the clock runs continuously, delay can cost you recoverable wages. If you suspect underpayment, act promptly even if you are still employed.
Making Your Final Decision
Overtime law is technical, but the core question is simple: did you work over 40 hours in a workweek, and were you paid one and one-half times your true regular rate for those hours? If the answer is no, you may have a claim worth pursuing.
If your pay records do not add up, or if your employer claims you are exempt, speak with an employment attorney in your state. A short review of your duties and pay records can clarify whether you qualify for overtime and how much you may be owed.
Disclaimer: This article provides general legal information only and is not legal advice. Wage and overtime law varies by state. For advice about your case, consult a licensed employment attorney.
