Pay Stubs•8 min read•
Overtime Pay Laws Explained: Federal FLSA Rules and State Variations
Complete guide to overtime pay rules under the Fair Labor Standards Act (FLSA). Learn who qualifies, how it is calculated, exempt vs non-exempt status, and state rules.
JP
JustPayStubs Team
Updated February 15, 2026
⏰ Federal Rule: Non-exempt employees must be paid at least 1.5x their regular rate for all hours over 40 in a workweek. Some states have stricter rules.
Exempt vs Non-Exempt Employees
| Category | Exemption Criteria |
|---|---|
| Executive | Salary ≥$684/week, manages 2+ employees, has hiring authority |
| Administrative | Salary ≥$684/week, office work, exercises independent judgment |
| Professional | Salary ≥$684/week, advanced knowledge in creative or learned field |
| Highly Compensated | Total annual compensation ≥$107,432 |
⚠️ Important: Job titles don't determine exemption status -- job duties and salary do. Calling someone a "manager" doesn't make them exempt if they don't actually manage people.
How to Calculate Overtime Pay
Example: $20/hr x 1.5 = $30 overtime rate. Work 45 hours: (40 x $20) + (5 x $30) = $950 gross.
State Laws That Exceed Federal Requirements
| State | Extra Protection |
|---|---|
| California | Daily OT over 8 hrs/day; double time over 12 hrs/day |
| Alaska | Daily OT over 8 hours per day |
| Nevada | Daily OT over 8 hours if employee earns less than 1.5x minimum wage |
| Colorado | Daily OT over 12 hours per day |
Common Overtime Violations
- Requiring off-the-clock work
- Averaging hours across two weeks to avoid overtime
- Automatically deducting meal breaks that aren't actually taken
- Misclassifying employees as exempt
📌 See Your Overtime on Your Pay Stub: Properly generated pay stubs show overtime hours separately with the correct rate. Try our pay stub generator here.
Related Topics
overtime pay lawFLSA overtimeovertime exempt employeesovertime calculationstate overtime lawsdouble time pay
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