Federal Overtime Law (FLSA) — The Baseline Every State Builds On

FLSA requires 1.5x the regular rate for hours over 40 in a workweek. No daily overtime. The 2024 DOL rule raising the salary threshold was vacated in November 2024; the $684/week level applies in 2026.

Threshold

40 h

per workweek. No daily overtime under federal law.

Rate

1.5x

the regular rate, which includes nondiscretionary bonuses and commissions.

Exempt salary floor

$684.00

per week ($35,568.00/year); HCE test $107,432.

Who the FLSA covers

Enterprise coverage reaches any business with $500,000 or more in annual sales, plus hospitals, schools and government agencies regardless of size. Individual coverage reaches employees of smaller businesses whose work involves interstate commerce — which courts read broadly enough that very few employees fall outside it. That is why Kansas's 46-hour and Minnesota's 48-hour state thresholds rarely matter in practice.

The workweek

A workweek is a fixed, regularly recurring 168-hour period. It can start on any day and hour, but once set it stays put, and overtime is figured on each week alone. Averaging a 30-hour week against a 50-hour week is not permitted.

Exemptions

The white-collar exemptions (executive, administrative, professional, computer, outside sales) require both the salary floor and a duties test. Other exemptions cover specific occupations — certain commissioned retail sales staff, motor carrier drivers, agricultural workers, seasonal amusement employees and others — each with its own conditions.

Common violations

Sources

As of October 25, 2026.