What is the FLSA overtime rule?
The federal Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees 1.5× their regular rate of pay for all hours worked beyond 40 in a workweek. The FLSA does not require daily overtime or double time — only California and a few other states impose daily overtime rules. The FLSA's salary-level threshold for exemption was updated in 2024 to $684/week ($35,568/year).
Does California have daily overtime rules?
Yes. California Labor Code §510 requires overtime pay at 1.5× for hours beyond 8 in a day and beyond 40 in a week. Double time (2×) applies after 12 hours in a day and for all hours on the 7th consecutive day of a workweek (after 8 hours). This means a California employee working 10 hours in a single day earns overtime for 2 hours even if their weekly total is under 40.
Who is exempt from overtime under the FLSA?
Employees in bona fide executive, administrative, or professional roles earning at least $684/week ($35,568/year) are exempt (white-collar exemptions). Highly compensated employees earning at least $107,432/year with primary duties including executive, administrative, or professional work are also exempt. Outside sales, computer professionals, and certain other categories have specific exemptions. Misclassification of non-exempt employees as exempt is one of the most common FLSA violations.