Overtime Compensation Under the Fair Labor Standards Act

Non-exempt employees must receive overtime pay at a rate not less than one and one-half times their regular rate of pay for all hours worked over 40 in a workweek. The regular rate includes all remuneration for employment except certain specified exclusions such as gifts, vacation pay, and discretionary bonuses.

Employers may not use artificial devices to evade overtime requirements, such as paying straight-time for overtime hours, manipulating workweek periods, or misclassifying employees as exempt. Compensatory time off in lieu of overtime pay is generally not permitted in the private sector.