FLSA Overtime Rule
The Fair Labor Standards Act overtime rule determines whether employees are eligible or exempt for overtime pay. Exempt employees, because of their rate of pay and type of work that they do, are not eligible for overtime pay for hours worked over 40 in a workweek. Nonexempt employees must be paid time and a half for any hours worked more than 40 in a workweek.
The rule does not affect overtime requirements for workers who are paid hourly.
[Editor's note: On Nov. 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the Biden administration’s overtime rule, which had raised the salary threshold for white-collar exemptions to overtime requirements. The ruling applies nationwide and returns the exempt salary threshold to $35,568 per year.]
What is the Salary Threshold?
The overtime salary threshold for exempt employees is a key component in determining eligibility for overtime pay. Employees earning less than the threshold are generally eligible for overtime, while those earning more may be exempt, depending on their job duties.
SHRM Member® Overtime Resources
SHRM members have access to additional overtime rule resources, including implementation toolkits, example policies, how-to guides and more.
Discover key insights into FLSA overtime exemptions with this detailed guide.
Ideal for employers and HR professionals, this members-only toolkit offers essential information on eligibility, salary thresholds, and job duties to ensure compliance and effective workforce management.
This overtime policy template details procedures for managing overtime pay compliance for nonexempt employees.
This template outlines the conditions for overtime eligibility, helping employers effectively control labor costs and adhere to regulatory standards.
This members-only toolkit provides insights into the benefits and risks of using overtime, including solutions for challenges like workforce dependency and safety concerns.
Discover practical strategies for optimizing overtime use to balance workload, cost, and employee welfare effectively.