Overtime Pay: Are you Eligible?

Overtime Pay: Are you Eligible?

You’re working late, covering for a coworker, or just putting in those extra hours to get the job done. Does that mean you are entitled to overtime pay? The good news is that overtime pay does exist. The bad news – not everyone is eligible. Here, we go over the details of overtime pay so you can figure out if you are eligible.

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What is Overtime Pay?

Overtime pay is extra compensation for working more than the standard full-time hours. Under federal law, it kicks in after you work 40 hours in a workweek and is paid at 1.5 times your regular hourly rate (commonly called “time and a half”).

Let’s say you make $20 an hour—your overtime rate would jump to $30 an hour. But, not everyone is entitled to overtime pay.

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Are You Eligible for Overtime Pay?

Your eligibility comes down to whether you’re classified as non-exempt or exempt under the Fair Labor Standards Act (FLSA). Here’s what that means:

Non-Exempt Employees

• You’re eligible for overtime pay.
• Most hourly workers fall into this category. Some salaried workers earning below a specific threshold also qualify. As of January 1, 2025 that amount equals $1,128 per week (equivalent to a $58,656 annual salary)
• Examples: Retail associates, warehouse workers, customer service reps.

Exempt Employees

• You don’t qualify for overtime.
• Exempt workers are usually salaried and perform specific roles like executive, administrative, or professional jobs.
• Examples: Managers, software developers, teachers.

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State Laws

Federal law sets the baseline, but state laws can add extra layers of protection for employees. Depending on where you live, you might have better overtime options.

A Few State Highlights:

1. California
   • Overtime applies after 8 hours in a single workday (not just 40 hours in a week).
   • If you work more than 12 hours in a day, that’s double time.
2. Colorado
   • Overtime applies for:
     • Over 40 hours in a week.
     • Over 12 hours in a single day.
     • Over 12 consecutive hours (even if it spans two days).
3. Nevada
   • Daily overtime applies after 8 hours, but only for employees earning less than 1.5x the state minimum wage.
4. Alaska
   • Requires overtime after 8 hours in a day or 40 hours in a week.
5. States Without Extra Overtime Rules
   • Places like Texas, Florida, and Georgia stick to federal law: overtime only applies for hours worked over 40 in a week.

Check your state overtime laws. If your state offers better protections than federal law, your employer must follow the state rules.

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What to Do If You’re Denied Overtime Pay

If you think you’re owed overtime, here’s what you can do:

• Start with your employer. Sometimes, errors happen, and employers might not even realize they’re making a mistake. If you were entitled to overtime, you may be entitled to backpay.
• Document everything. Keep a record of your hours worked, especially if you believe you’re being underpaid.
• Check with your state labor office. Many states have agencies that help workers handle these issues.
• File a complaint with the Department of Labor (DOL). The DOL can investigate and take action if necessary.

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Final Thoughts

Overtime pay can make a big difference, but it’s not automatically guaranteed to everyone. Knowing your rights—whether it’s under federal law or your state’s specific rules—is the best way to ensure you’re getting paid what you’re owed. So, take a moment to double-check your classification, review your state’s laws, and don’t be afraid to ask questions. If you feel that you are owed overtime wages and your employer disagrees, speak with an employment attorney or file a complaint with the Department of Labor.

See Also:

• The Phone Interview: What You Need To Know
• Can An Employer Ask My Salary History In An Interview?

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This article is intended for informational purposes only. It provides general information and is not intended and should not be construed as professional advice. The author is not your attorney, accountant, financial planner or any other professional and no professional-client relationship is created. We do not represent that the information provided is accurate or up-to-date as laws and regulations are always changing. If you have an issue that requires professional help, you should contact the appropriate professional to help you on your specific set of facts. Please read the Terms and Conditions for additional information.