An Employee’s Guide to the Fair Labor Standards Act (FLSA): When Are You Entitled to Overtime Pay?

Introduction

Understanding your rights as an employee is crucial, especially when it comes to fair wages and overtime pay. The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for workers in the United States. One of the FLSA’s most essential protections is ensuring that eligible employees receive overtime pay for extra hours worked. But when exactly are you entitled to overtime?

This guide will break down the basics of the FLSA, explain how overtime pay works, and help you understand when you’re eligible for it.

What is the Fair Labor Standards Act (FLSA)?

The Fair Labor Standards Act (FLSA), is a federal law that protects workers’ rights by setting standards for minimum wage, overtime pay, and other work conditions. The FLSA covers most employers in the private sector, as well as federal, state, and local governments. While the FLSA applies to most employees, certain types of workers, such as independent contractors and those covered by specific exemptions, may not be entitled to its protections.

Overtime Pay Under the FLSA: What You Need to Know

Under the FLSA, non-exempt employees are entitled to overtime pay for any hours worked over 40 in a workweek. Overtime pay must be at least one and a half times the employee’s regular hourly rate. For example, if your regular pay rate is $20 per hour, your overtime rate would be $30 per hour for each hour worked beyond 40 hours in a week.

Who is Entitled to Overtime Pay?

Employees’ eligibility for overtime pay depends on their classification as exempt or non-exempt under the FLSA. Here’s what you need to know about these classifications:

1. Non-Exempt Employees. Non-exempt employees are generally entitled to overtime pay under the FLSA. This category includes most hourly workers and some salaried employees who do not meet specific exemption criteria. If you’re a non-exempt employee, you should receive overtime pay for any hours worked beyond 40 in a week.
2. Exempt Employees. Exempt employees are not eligible for overtime pay under the FLSA. Employees in this category usually meet specific criteria related to their job duties and salary level. The most common exemptions include executive, administrative, and professional employees, often referred to as “white-collar exemptions.” To qualify as exempt, employees must perform certain job duties and earn at least $684 per week on a salary basis (as of 2020).

FLSA Exemptions: Do You Qualify as an Exempt Employee?

Certain job roles are exempt from overtime pay based on their job duties and salary level. Here’s a quick overview of the main exemptions:

1. Executive Exemption. Employees who manage a department or team, regularly supervise at least two other employees, and have the authority to make hiring or firing decisions may qualify for the executive exemption. They must also be paid on a salary basis at a rate of at least $684 per week.
2. Administrative Exemption. To qualify for the administrative exemption, employees must perform office or non-manual work directly related to the management or general business operations of the employer. They must exercise discretion and independent judgment on significant matters and earn at least $684 per week.
3. Professional Exemption. The professional exemption applies to employees whose primary duties involve advanced knowledge in a specialized field, typically requiring at least a bachelor’s degree or higher. Examples include lawyers, doctors, engineers, and teachers. These employees must also earn at least $684 per week.
4. Other Exemptions. Additional exemptions may apply to specific industries and roles, such as computer professionals, outside sales employees, and certain highly compensated employees earning at least $107,432 annually.

Common Myths About Overtime Eligibility

Several misconceptions surround FLSA overtime eligibility. Here are a few common myths and the facts you need to know:

• Myth: All salaried employees are exempt from overtime.
  • Fact: Not all salaried employees are exempt. To qualify as exempt, employees must meet both the salary and job duties criteria for one of the FLSA exemptions.
• Myth: Overtime only applies to hours worked beyond 80 in two weeks.
  • Fact: Overtime applies to hours worked over 40 in a single workweek, not a two-week pay period, even if your employer pays you biweekly.
• Myth: Managers are always exempt from overtime.
  • Fact: Not all managers qualify for the executive exemption. To be exempt, managers must meet specific job duties and salary requirements.

What to Do if You’re Not Receiving Overtime Pay

If you believe you’re entitled to overtime pay but aren’t receiving it, you have options:

1. Review Your Employment Classification: Check whether your employer has classified you as exempt or non-exempt, and review the criteria to ensure the classification is accurate.
2. Speak with Your Employer or HR Department: In many cases, a simple discussion with your employer or HR department can resolve misunderstandings about overtime pay eligibility. Talking about it with your Employer is generally the most effective and reasonable course.
3. File a Complaint with the Department of Labor (DOL): If you believe your employer is violating FLSA overtime requirements, you can file a complaint with the Wage and Hour Division (WHD) of the DOL. They will investigate your claim and may require your employer to pay any unpaid wages.

Conclusion

The FLSA’s overtime provisions are designed to protect workers and ensure fair compensation for extra hours worked. As an employee, understanding your rights under the FLSA is essential for ensuring you’re paid fairly. If you’re unsure about your classification or have questions about overtime eligibility, start by reviewing your job duties and pay structure to determine whether you qualify for overtime pay. At Jobs4More, we’re committed to helping employees understand Labor Laws and real workplace rights and protections.