FLSA overtime rules
FLSA Overtime Rules: Everything US Employees Need to Know in 2026
You worked 47 hours last week. Should you be paid overtime? The answer depends on the FLSA overtime rules — and millions of workers either don’t know their rights or have been misclassified by their employer without realising it.
The Fair Labor Standards Act (FLSA) is the federal law that governs overtime pay in the United States. It determines who must be paid time-and-a-half for hours beyond 40 in a workweek, and who can legally be excluded from that protection. In 2026, a court ruling has reset the salary threshold that determines exempt status, making it more important than ever to understand exactly where you stand.
This guide covers how FLSA overtime works, who qualifies as FLSA non-exempt, the current salary and duties tests, common employer mistakes, and how to calculate what you’re actually owed. Let’s start with the basics.
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What Are the FLSA Overtime Rules?
The Fair Labor Standards Act was enacted in 1938 and sets the national baseline for overtime pay. Under FLSA Section 7(a), any employee who is non-exempt must receive overtime pay at a rate of at least 1.5 times their regular rate of pay for every hour worked beyond 40 in a single workweek.
The FLSA defines a workweek as a fixed, recurring period of 168 hours — seven consecutive 24-hour periods. It doesn’t have to line up with the calendar week. Your employer can set the workweek start to any day and any hour, as long as it stays consistent.
Crucially, there is no limit in the Act on the number of hours employees aged 16 and older may work in any workweek. The FLSA does not require overtime pay for work on Saturdays, Sundays, or holidays — unless overtime is actually worked on those days. Overtime isn’t about which days you work, it’s about how many hours you work in the week.
Example: If your employer’s workweek runs Monday to Sunday and you work 9 hours Monday through Friday (45 hours total), you’re owed overtime pay for 5 hours — regardless of the fact that you didn’t work weekends.
How Is Overtime Pay Calculated Under the FLSA?
The formula is:
Overtime Pay = Regular Hourly Rate × 1.5 × Overtime Hours Worked
For hourly workers, the regular rate is simply your hourly wage. For salaried non-exempt employees, you first need to convert your salary into an hourly rate before applying the multiplier.
Worked example — hourly worker: Sarah earns $18/hour and works 46 hours in a week.
- Regular pay: 40 hours × $18 = $720
- Overtime rate: $18 × 1.5 = $27/hour
- Overtime pay: 6 hours × $27 = $162
- Total weekly pay: $882
Worked example — salaried non-exempt worker: Marcus earns $600/week and is classified as non-exempt. He works 48 hours.
- Regular hourly rate: $600 ÷ 40 hours = $15/hour
- Overtime rate: $15 × 1.5 = $22.50/hour
- Overtime pay: 8 hours × $22.50 = $180
- Total weekly pay: $780
Note that the Act applies on a workweek basis — overtime cannot be averaged across multiple weeks. If you work 30 hours one week and 50 the next, you’re owed 10 hours of overtime in week two, even if the two-week average is 40.
Who Qualifies for Overtime? The FLSA Non-Exempt Rules Explained
Not every employee is entitled to overtime. The FLSA divides workers into two categories: exempt and non-exempt.
Non-exempt employees must receive overtime pay. Exempt employees do not. To be classified as exempt under the most common exemption — the Executive, Administrative, and Professional (EAP) exemption, established under FLSA Section 13(a)(1) — an employee must pass all three of the following tests:
1. Salary-Basis Test The employee must be paid a predetermined, fixed salary that doesn’t vary based on the quantity or quality of work.
2. Salary-Level Test The federal overtime salary threshold is $35,568 per year ($684 per week) as of 2026. This figure was reset after a November 2024 ruling by the U.S. District Court for the Eastern District of Texas, which vacated the DOL’s 2024 final rule. The Department is consequently applying the 2019 rule’s minimum salary level of $684 per week.
3. Duties Test The employee’s primary job duties must genuinely match an exempt category — executive, administrative, professional, outside sales, or computer-related. A job title alone is not enough.
A worker who meets all three criteria is classified as an “exempt employee” who cannot receive overtime pay. Conversely, a worker who is hourly, earns less than $684 a week, or doesn’t primarily perform exempt duties is classified as a “non-exempt employee” — meaning they’re eligible for overtime pay.
For the official government guidance, visit the DOL Wage and Hour Division.
FLSA Overtime Salary Thresholds: 2026 Figures
The current federal salary thresholds for overtime exemption are as follows:
| Classification | Weekly Threshold | Annual Equivalent |
|---|---|---|
| Standard EAP Exempt | $684/week | $35,568/year |
| Highly Compensated Employee (HCE) | N/A | $107,432/year |
Several states have their own salary thresholds that exceed the federal level. Five states increased their minimums on January 1, 2026. Here’s a quick comparison:
| State | 2026 Weekly Minimum |
|---|---|
| Federal (FLSA) | $684 |
| California | $1,352 |
| Colorado | $1,111.23 |
| Washington | $1,541.70 |
| New York | Higher than federal (varies by region) |
Generally, if a state law is more protective to the employee, that state law applies. If you work in California, for example, your employer must meet California’s threshold — not just the federal one — for the EAP exemption to apply.
Important 2026 note: The U.S. Department of Labor has indicated it plans to review the rule for possible changes, which would be sought through the regulatory process. Employers and employees should monitor developments at dol.gov/agencies/whd.
Common FLSA Overtime Mistakes (and How to Avoid Them)
This section covers where employers — and employees — most often go wrong.
Mistake 1: Assuming a job title creates an exemption. Common patterns include classifying salaried workers as exempt without verifying they meet both the salary threshold and the duties test, and assuming that job titles like “manager” or “coordinator” automatically confer exempt status without reviewing actual responsibilities. If your duties don’t match the legal definition of an executive or administrative employee, you’re non-exempt regardless of what your business card says.
Mistake 2: Thinking salaried means no overtime. This is one of the most widespread misconceptions in US employment law. Being paid a salary does not make you exempt. You must also earn above the salary threshold and pass the duties test. A salaried employee earning $600/week is non-exempt and entitled to overtime.
Mistake 3: Averaging hours across multiple weeks. Overtime applies on a workweek basis — you can’t average hours across multiple weeks. If your employer tells you that your 50-hour week will be “balanced out” by a slow week coming up, that’s not lawful under the FLSA.
Mistake 4: Ignoring state-specific rules. Remote work further complicates compliance because employers must apply the overtime rules of the state where the employee physically performs the work, rather than the state where the organisation is based. If your employer is in Texas but you work remotely from California, California’s rules apply to you.
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Frequently Asked Questions
Does the FLSA require overtime pay for working on weekends or holidays?
No. The FLSA does not require any additional pay for working on weekends, holidays, or regular days of rest — unless you work more than 40 hours in that workweek. Some employers choose to pay holiday rates, but the FLSA itself does not mandate this. Always check your employment contract or company policy.
Can my employer make me work overtime without paying me extra?
No — if you’re a non-exempt employee under the FLSA, your employer must pay time-and-a-half for every hour over 40 in a workweek. While employers can require you to work overtime (with some exceptions), they cannot withhold the overtime premium. If they do, you can file a complaint with the DOL Wage and Hour Division.
I’m paid a salary — does that mean I’m automatically exempt from overtime?
No. This is one of the most common misconceptions about FLSA overtime rules. Being paid a salary is just one part of the test. You must also earn at least $684 per week and your primary job duties must qualify under the executive, administrative, or professional categories. Failing either test means you’re entitled to overtime pay.
How is overtime calculated if I earn different pay rates in the same week?
You calculate the blended regular rate by dividing total earnings for the week by total hours worked, then apply the 1.5 multiplier to overtime hours. For example: if you earned $500 from Task A and $200 from Task B across 50 hours, your regular rate is $700 ÷ 50 = $14/hour. Your overtime premium for 10 hours is $14 × 0.5 × 10 = $70 on top of the $700 base.
What is the overtime threshold for highly compensated employees (HCEs) in 2026?
The Department is currently applying the 2019 rule’s total annual compensation requirement for highly compensated employees of $107,432 per year, following the court ruling that vacated the 2024 DOL final rule. Employees above this threshold who also receive at least $684/week on a salary basis and customarily perform at least one exempt duty are generally classified as exempt.
You Might Also Find These Useful
You now know whether your employer owes you overtime — here are three more tools to help you manage your pay accurately.
Overtime Pay Calculator — Plug in your hours and hourly rate to see exactly what you’re owed, including the overtime premium, in seconds.
Shift Differential Pay Calculator — If you work evening, night, or weekend shifts that attract a higher rate, this tool calculates your blended pay for those hours alongside any applicable overtime.
Freelance Day Rate Calculator — The FLSA doesn’t cover genuine independent contractors, so if you’re moving from employment to freelancing, use this calculator to set a day rate that accounts for the overtime and benefits you’re giving up.
PAGE DISCLAIMER: Results from PayCalcTools tools are for guidance purposes only and do not constitute legal, financial, or professional advice. This post discusses US federal law under the Fair Labor Standards Act (FLSA) as enforced in 2026 following the November 2024 court ruling. State laws vary; always consult a qualified employment attorney or contact the DOL Wage and Hour Division for advice specific to your situation. Last reviewed: April 2026.
