The federal floor.
The Fair Labor Standards Act of 1938 is the bedrock federal law on minimum wage, overtime, recordkeeping, and child labor. Here's what it actually requires.
40
hrs / week threshold
1.5×
overtime rate
$7.25
federal min wage
1938
year enacted
Overtime requirements
The FLSA requires non-exempt employees be paid 1.5× their regular rate for all hours worked beyond 40 in a workweek. That's the entire federal overtime regime in one sentence. Daily overtime, double time, holiday premiums — none of those are required by federal law.
| Requirement | FLSA standard |
|---|---|
| Overtime threshold | 40 hours per workweek |
| Overtime rate | 1.5× regular rate |
| Daily overtime | Not required federally |
| Double time | Not required federally |
What is a workweek?
A workweek under the FLSA is a fixed and regularly recurring 168-hour period (seven consecutive 24-hour days). It can start on any day and any hour the employer establishes — but once set, it stays put.
Each workweek stands alone for overtime calculation.
Hours cannot be averaged across two or more weeks.
The employer sets the workweek start day.
If your workweek is Sunday through Saturday and you work 45 hours, you're entitled to 5 hours of overtime — even if the next week you only work 30 hours.
Calculating the regular rate
The “regular rate” for overtime purposes includes more than just your hourly wage. The full calculation matters because it determines what 1.5× actually equals.
Base hourly wage
Non-discretionary bonuses
Shift differentials
Piece-rate earnings
Commissions
Discretionary bonuses
Gifts / special-occasion pay
Expense reimbursements
Premium pay for weekends
Vacation / holiday pay
Who is covered?
The FLSA applies to employees of enterprises with annual gross sales of at least $500,000, or those engaged in interstate commerce. In practice, almost all U.S. employees are covered.
Enterprise coverage applies if the employer:
Has annual gross sales of $500,000 or more
Operates a hospital, nursing home, or school
Is a public agency
Individual coverage applies if the employee:
Engages in interstate commerce (using phones, mail, internet)
Handles goods that have moved in interstate commerce
Recordkeeping
Employers must keep payroll records for non-exempt workers for at least three years. Required:
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
Enforcement
The Wage and Hour Division of the U.S. Department of Labor enforces the FLSA. Penalties for violations:
Back wages plus liquidated damages equal to back wages.
Civil penalties up to $2,451 per violation.
Criminal prosecution for willful violations.
Statute of limitations: 2 years for ordinary violations, 3 years if willful.
Run the math
Apply this to a real timesheet, in seconds.
For general education only. Overtime law has exceptions. For a specific situation, contact your state labor department or an employment attorney.