The Fair Labor Standards Act (FLSA) requires most employers to pay eligible employees overtime at a rate of 1.5 times their regular hourly rate for all hours worked over 40 in a workweek.
Who is eligible: Most hourly (non-exempt) employees are entitled to overtime. Salaried employees earning below the FLSA salary threshold are also entitled to overtime.
Common exemptions: Executive, administrative, professional, outside sales, and certain computer employees who meet specific duties tests AND earn above the salary threshold are exempt from overtime requirements.
State variations: Some states have more protective overtime laws. California, for example, requires overtime pay for hours worked over 8 in a single day (not just over 40 in a week) and double time for hours over 12.
Common violations: Misclassifying employees as exempt (salaried) to avoid paying overtime. Requiring off-the-clock work. Not counting travel time, training time, or preparation time. Averaging hours over multiple weeks instead of calculating per workweek.
If you're not receiving proper overtime: Keep your own records of hours worked. File a complaint with the Department of Labor's Wage and Hour Division or your state labor agency. You may also be able to file a private lawsuit to recover unpaid overtime, liquidated damages (double the unpaid amount), and attorney fees.
Claims can go back 2 years (3 years for willful violations) under the FLSA.