Overtime LawsOvertime Laws

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Employees Eligible for Overtime

Most employees, whether paid a salary or an hourly wage, are eligible for overtime

More than 130 million Americans are eligible for overtime pay. Employees are eligible for overtime pay if: 1) they are "covered" by the Fair Labor Standards Act, and 2) they are "non-exempt" employees.

Coverage under the Fair Labor Standards Act

There are two ways employees are covered by the Fair Labor Standards Act: "enterprise coverage" and "individual coverage."

All of the employees who work for a business that is deemed an enterprise are covered by the Fair Labor Standards Act. Enterprises must have at least two employees, and an annual gross revenue of $500,000. In addition, hospitals, businesses providing medical or nursing care for residents, schools and preschools, and government agencies are enterprises.

Even when there is no enterprise coverage, employees are individually covered by the Fair Labor Standards Act if they are involved in "interstate commerce." For example, employees who produce goods that will be sent out of state, or who regularly make telephone calls to persons located in other states, are engaged in interstate commerce.

Non-exempt employees

Most employees are non-exempt employees, meaning they are entitled to overtime pay. The types of employees who are exempt, meaning they are not entitled to overtime pay, including the following: executives who can hire and fire employees, administrative employees who set policies and advise management, professional employees like doctors and lawyers, computer employees who write computer code, and outside sales employees who make door to door sales. If you did not fit within any of these exemptions, you are "non-exempt" and entitled to overtime pay.

More Overtime Law Topics

Employees Eligible for Overtime

Myth: Salaried Employees Aren't Entitled to Overtime

Salary Basis Requirement

Executive, Administrative, and Professional Employees

Computer Employees

Outside Sales Employees

Independent Contractor Misclassification

Homecare Workers

Compensable Hours

Working Before and After Your Shift

Working From Home

Meal and Rest Periods

Travel Time

Training and Meetings

Rounding of Start and Stop Times

Calculating Overtime Pay



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