Overtime Pay Rules in the US: 2025 FLSA Guide

The Fair Labor Standards Act (FLSA) is the federal law governing overtime pay. Here is everything employees and employers need to know about how overtime works in 2025.

The Basic Rule

Any non-exempt employee must be paid at least 1.5× their regular rate for hours worked over 40 in a single workweek.

Regular Rate	Overtime Rate (1.5×)
$15.00/hr	$22.50/hr
$20.00/hr	$30.00/hr
$25.00/hr	$37.50/hr
$30.00/hr	$45.00/hr
$35.00/hr	$52.50/hr
$40.00/hr	$60.00/hr
$50.00/hr	$75.00/hr

Who Is Non-Exempt (Eligible for Overtime)?

Most hourly workers are non-exempt and therefore entitled to overtime. Common examples:

• Retail and food service workers
• Construction and trades workers
• Healthcare support staff (CNAs, medical assistants)
• Administrative assistants (below salary threshold)
• Drivers and delivery workers
• Manufacturing and warehouse employees

Who Is Exempt from Overtime?

The FLSA defines several exemption categories:

White-Collar Exemptions (Must Meet BOTH Salary and Duties Tests)

Exemption	Salary Threshold (2025)	Duties Requirement
Executive	$684/week ($35,568/yr)	Primary duty: managing enterprise or department, directing 2+ employees
Administrative	$684/week	Primary duty: office/non-manual work related to business operations with discretion/judgment
Professional (learned)	$684/week	Primary duty: requires advanced knowledge in field of science or learning
Professional (creative)	$684/week	Primary duty: invention, imagination, originality in artistic or creative field
Computer employees	$684/week OR $27.63/hr	Systems analyst, programmer, software engineer, or similar
Outside sales	No salary threshold	Primary duty: making sales outside employer’s place of business

Important: Being paid a salary does not automatically make someone exempt. Both the salary threshold AND the duties test must be met.

2025 Overtime Threshold

The Department of Labor attempted to raise the salary threshold significantly in 2024, but legal challenges have complicated implementation. As of early 2025, the operative threshold remains $684/week ($35,568/year) for most purposes, though employers should verify current federal guidance.

How Overtime Is Calculated

Simple Example (Hourly Worker)

• Regular hours (40): 40 × $25/hr = $1,000
• Overtime hours (8): 8 × $37.50/hr = $300
• Total weekly pay: $1,300

With Non-Discretionary Bonus

If you receive production bonuses, the “regular rate” for overtime calculations may be higher than your base hourly rate.

For example: $25/hr base + $100 weekly production bonus

• Regular rate = ($1,000 base + $100 bonus) / 40 hours = $27.50/hr
• Overtime rate = $27.50 × 1.5 = $41.25/hr

State Overtime Rules: Sometimes Stricter

State	Daily Overtime Rule
California	OT after 8 hrs/day AND 40 hrs/week; double time after 12 hrs/day
Alaska	OT after 8 hrs/day AND 40 hrs/week
Nevada	OT after 8 hrs/day (if earning under 1.5× minimum wage)
Most states	Federal rule only: OT after 40 hrs/week

California’s daily overtime rule means a California worker who works 10 hours Monday, 10 hours Tuesday, and is off the rest of the week has earned 4 hours of overtime — even though they worked only 20 hours total for the week.

Compensatory Time (“Comp Time”)

Private-sector employers generally cannot offer “comp time” (time off in lieu of overtime pay) under the FLSA. Government (public-sector) employers can offer comp time at 1.5× rate to non-exempt employees.

What to Do If You Are Owed Overtime

1. Keep records of your hours worked
2. Review your pay stubs for accuracy
3. Contact your HR department with documentation
4. File a complaint with the US Department of Labor Wage and Hour Division (dol.gov/agencies/whd) if unresolved
5. Consult an employment attorney — FLSA cases often allow recovery of back pay plus an equal amount in liquidated damages

Use our Paycheck Calculator to verify your expected pay with or without overtime.

See Also

• Minimum wage by state 2025
• $25/hr annual salary with overtime
• W-2 vs 1099 tax differences