FLSA Overtime Rules Explained: The 2024 Guide

The Fair Labor Standards Act (FLSA) is the federal law that establishes overtime pay requirements, minimum wage, recordkeeping standards, and child labor protections for full-time and part-time workers in the US. Enacted in 1938 and updated periodically, the FLSA is enforced by the US Department of Labor's Wage and Hour Division (WHD).

FLSA core overtime requirement

The central FLSA overtime rule is simple in concept:

Covered, non-exempt employees must receive overtime pay for all hours worked over 40 in a workweek, at no less than 1.5× their regular rate of pay.

Who is covered by FLSA?

FLSA coverage applies in two ways:

Enterprise coverage

Applies to employees of businesses with at least:

• Two or more employees, AND
• Annual gross volume of business of $500,000+, OR
• Are hospitals, schools, or government agencies (regardless of revenue)

Individual coverage

Even if your employer isn't covered under enterprise coverage, you may still be individually covered if your work involves:

• Interstate commerce (calls, mail, transactions across state lines)
• Production of goods for interstate commerce
• Domestic service in private homes (in some cases)

In practice, the vast majority of US workers are FLSA-covered.

The "workweek" defined

FLSA defines a workweek as a fixed and recurring 168-hour period (seven consecutive 24-hour periods). It can begin any day of the week at any hour — but once set by the employer, it must remain consistent.

Key point: Each workweek is calculated independently. You cannot average hours across two weeks. So 30 hours one week + 50 hours the next still triggers 10 hours of OT in the second week.

FLSA exemptions explained

Some employees are "exempt" from FLSA overtime requirements. The most common exemptions are the "white-collar" exemptions:

Executive exemption

An employee qualifies if they:

• Earn at least $844/week ($43,888/year) on a salary basis
• Have a primary duty of managing the enterprise or a department
• Customarily direct the work of at least 2 full-time employees
• Have authority to hire/fire (or recommendations carry weight)

Administrative exemption

• Earn at least $844/week on a salary basis
• Primary duty is non-manual office work directly related to management or general business operations
• Exercise discretion and independent judgment on significant matters

Professional exemption

Two sub-types:

• Learned: Work requires advanced knowledge in a field of science or learning, customarily acquired through prolonged specialized study (lawyers, doctors, accountants, registered architects, certified teachers)
• Creative: Work requires invention, imagination, originality, or talent in a recognized artistic field

Outside sales exemption

Employees whose primary duty is making sales away from the employer's place of business. No salary requirement.

Computer employee exemption

Computer systems analysts, programmers, software engineers, and similar workers earning at least $844/week salary OR $27.63/hr.

Highly compensated employees

Workers earning at least $132,964/year (rising to $151,164 in January 2025) who customarily perform at least one duty of an exempt executive, administrative, or professional employee.

Industry-specific FLSA exemptions

Beyond white-collar exemptions, FLSA includes many narrower exemptions for specific industries:

• Motor carrier drivers (Department of Transportation jurisdiction)
• Agricultural workers (small farms exemption)
• Seasonal amusement/recreational establishments
• Domestic service workers in private homes (limited)
• Commissioned retail/service employees (with conditions)
• Movie theater employees
• Newspaper delivery workers

FLSA recordkeeping requirements

Employers must keep accurate records for non-exempt employees, including:

• Time and day workweek begins
• Hours worked each day
• Total hours worked each workweek
• Regular hourly rate
• Total daily/weekly straight-time earnings
• Total overtime earnings for the workweek
• All deductions and additions
• Total wages paid each pay period
• Date of payment and pay period covered

Enforcement and penalties

The DOL Wage and Hour Division can:

• Recover back wages owed
• Assess civil penalties up to $1,000+ per violation
• Pursue criminal charges for willful violations

Workers can also file private lawsuits to recover unpaid wages, plus equal amount as liquidated damages, plus attorney fees.

State laws can give workers MORE

FLSA sets a federal floor — state laws can provide stronger protections. Where federal and state laws differ, employees receive whichever rule benefits them more. Examples:

• California's daily overtime and double time
• Higher state minimum wages
• State-specific industry rules (Massachusetts retail Sundays)

Related guides

Source: US Department of Labor — FLSA