Overtime Labor Laws

Overtime labor laws are governed in large part by the Fair Labor Standards Act of 1937, which set the work week at 40 hours for certain type of workers, and set the overtime pay to be 1 and a half times that of normal pay for every hour over 40 hours worked. The law created two categories of workers- those who are "exempt" from regulation and those who are "non-exempt." Those exempt from the law do not qualify for overtime. They include Independent Contractors as well as administrative, professional, and executive employees. These last three types of employees must meet certain duties, salary basis, and salary levels to be considered exempt from overtime laws. Others exempt from overtime laws include types of agricultural workers, types of live-in employees, some transportation employees and outside sales people.

Fast Facts

  • The Department of Labor handles overtime laws
  • Around 50 million of the 120 million working Americans are considered exempt from overtime laws

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