The FLSA is the primary federal law governing minimum wage, overtime pay, recordkeeping, and child labor standards in the United States.
40
Hours/Week Threshold
1.5x
Overtime Rate
$7.25
Federal Min Wage
1938
Year Enacted
The FLSA requires employers to pay overtime to non-exempt employees at a rate of at least 1.5 times their regular rate of pay for all hours worked over 40 in a workweek.
| Requirement | FLSA Standard |
|---|---|
| Overtime Threshold | 40 hours per workweek |
| Overtime Rate | 1.5x regular rate (time and a half) |
| Daily Overtime | Not required by federal law |
| Double Time | Not required by federal law |
A workweek under the FLSA is a fixed and regularly recurring period of 168 hours (7 consecutive 24-hour periods). It may begin on any day and at any hour that the employer establishes.
Each workweek stands alone for overtime calculation
Hours cannot be averaged over two or more weeks
Employer can set workweek start day
Example: If your workweek runs Sunday to Saturday and you work 45 hours, you're entitled to 5 hours of overtime pay, even if the following week you only work 30 hours.
The "regular rate" for overtime purposes includes all compensation, not just the hourly wage. This may include:
Included in Regular Rate:
Base hourly wage
Non-discretionary bonuses
Shift differentials
Piece rate earnings
Commissions
NOT Included:
Discretionary bonuses
Gifts/special occasion pay
Expense reimbursements
Premium pay for weekends
Vacation/holiday pay
The FLSA applies to employees of enterprises that have annual gross sales of at least $500,000 or are engaged in interstate commerce. Most employees are covered.
Enterprise Coverage applies to employers that:
Have annual gross sales of $500,000 or more
Operate a hospital, nursing home, or school
Are a public agency
Individual Coverage applies to employees who:
Engage in interstate commerce (including using phones, mail, internet)
Handle goods that have moved in interstate commerce
Employers must keep certain records for each non-exempt worker. These records must be kept for at least three years.
Full name and Social Security number
Address and ZIP code
Birth date (if under 19)
Sex and occupation
Hours worked each day and week
Hourly pay rate
Total daily/weekly earnings
Pay period dates and payment date
The Wage and Hour Division (WHD) of the U.S. Department of Labor enforces the FLSA.
Penalties for violations: Employers may be required to pay back wages, liquidated damages (equal to back wages), civil penalties up to $2,451 per violation, and criminal prosecution for willful violations.
Statute of limitations: 2 years for non-willful violations, 3 years for willful violations.
Disclaimer: This information is provided for educational purposes only. The FLSA has many nuances and exceptions. For official guidance, visit the Department of Labor website at dol.gov or consult an employment attorney.