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US Legal Brain Editorial Team
Published: 2026-07-03 · 8 min read · Reviewed by legal professionals

Overtime Pay and Wage Laws 2026 | 加班费与工资法完全指南

Last reviewed: July 4, 2026 | By US Legal Brain Editorial Team

Key Takeaways

Federal Overtime Law (FLSA)

The Fair Labor Standards Act (FLSA) is the federal law that governs minimum wage, overtime pay, recordkeeping, and child labor. It covers most employers with annual revenue of $500,000 or more, as well as hospitals, schools, and government agencies.

Under the FLSA, non-exempt employees must receive overtime pay at 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. A workweek is defined as a fixed, recurring period of 168 hours (7 consecutive days).

Exempt vs. Non-Exempt Employees

Non-Exempt Employees (Entitled to Overtime)

Exempt Employees (Not Entitled to Overtime)

To qualify as exempt, all three tests must be met:

  1. Salary Basis Test: Employee is paid a predetermined salary that doesn't change based on quality or quantity of work
  2. Salary Level Test: Annual salary of at least $43,888 (as of 2024, $844/week). This threshold increased from the previous $35,568 ($684/week).
  3. Duties Test: Job duties must involve executive, professional, or administrative work as defined by DOL regulations

Common exemptions:

Exemption TypeJob Duties RequiredCommon Examples
ExecutiveManage 2+ employees, authority to hire/fireManagers, directors
AdministrativeOffice work requiring discretion and independent judgmentHR, finance, operations
ProfessionalAdvanced knowledge in a field of science or learningDoctors, lawyers, architects
Computer ProfessionalSystems analysis, programming, software engineeringSoftware engineers ($27.63/hr minimum)
Outside SalesCustomarily engaged away from employer's place of businessSales representatives

Misclassification is common. Just because your employer calls you "exempt" doesn't make it legal. If your salary is below the threshold, or if your duties don't match the exemption, you may be entitled to unpaid overtime.

Minimum Wage by State (2026)

StateMinimum WageDaily OvertimeTipped Minimum
California$16.00/hr (large employers)1.5x over 8 hrs, 2x over 12 hrs$16.00 (same)
Washington$16.28/hrNone$16.28
New York City$15.00/hr1.5x over 10 hrs$10.00 (food service)
Massachusetts$15.00/hrNone$6.75
New Jersey$15.13/hrNone$5.26
Florida$12.00/hrNone$8.98
Illinois$15.00/hrNone$9.00
Texas$7.25/hr (federal)None$2.13
Georgia$7.25/hr (federal)None$2.13

California Overtime Rules (Stricter Than Federal)

California has the most employee-friendly overtime laws in the country:

How Overtime is Calculated

The regular rate of pay includes not just your hourly wage, but also:

Example: If you earn $20/hour and receive a $200 weekly bonus, your regular rate is $25/hour ($20 + $200/40). Overtime rate = $37.50/hour (1.5 x $25).

Tips cannot be used to offset the overtime premium. If you earn $5/hour plus tips, your overtime rate is based on the full minimum wage, not the tipped rate.

Common Wage Violations

ViolationWhat It Looks LikeWhat to Do
Off-the-clock workAsked to prep before shift or clean up after clocking outTrack actual hours; file wage claim
Misclassification as exemptSalaried but earning under $43,888 and doing routine workFile FLSA claim or lawsuit
Misclassification as contractorTreated as employee (set hours, directed work) but paid as 1099File SS-8 with IRS; state wage claim
Comp time instead of overtimeGiven time off instead of 1.5x pay for overtimeIllegal in private sector; file claim
Unpaid meal breaksRequired to work through lunch but not paidFile state labor complaint
Automatic deductionsMeal break auto-deducted even when you worked through itKeep records; file claim

Filing a Wage Claim

  1. Gather evidence: Pay stubs, time records, emails, text messages about scheduling
  2. Calculate what you're owed: Unpaid hours x regular rate x 1.5 (overtime) or 2.0 (double)
  3. File with the Department of Labor: dol.gov/wec or call 1-866-487-9243
  4. File with your state labor department: Often faster than federal; some states offer better remedies
  5. Consult an employment attorney: Many offer free consultations and work on contingency

What You Can Recover

Independent Contractor vs. Employee

Employers may classify workers as contractors to avoid paying overtime, minimum wage, payroll taxes, and benefits. This is often illegal.

ABC Test (California and Others)

A worker is an employee unless all three are true:

  1. (A) The worker is free from the hiring entity's control and direction
  2. (B) The work is outside the usual course of the hiring entity's business
  3. (C) The worker is engaged in an independently established trade or business

If any one fails, the worker is an employee.

IRS Test (Federal)

The IRS uses a 20-factor test focusing on behavioral control, financial control, and relationship type. File Form SS-8 if you believe you're misclassified.

Frequently Asked Questions

Who is entitled to overtime pay?

Non-exempt employees — those paid hourly or below the salary threshold ($43,888/year). Exempt employees (salary above threshold + executive/administrative/professional duties) are not entitled to overtime.

What is the federal minimum wage in 2026?

$7.25/hour (unchanged since 2009). However, 30+ states and many cities have higher minimums. The higher of federal, state, or local minimum applies.

Can my employer make me work off the clock?

No. Under the FLSA, all hours worked must be paid. If your employer requires pre-shift work, post-shift cleanup, or work during unpaid breaks, that's compensable time. File a wage claim.

What is the difference between exempt and non-exempt?

Non-exempt employees get overtime pay and minimum wage. Exempt employees don't. To be exempt: (1) paid a salary, (2) earn above $43,888/year, (3) perform executive, professional, or administrative duties.

How do I file a wage claim?

File with the DOL (dol.gov/wec) or your state labor department. The process is free. You can also sue in court. You can recover 2 years of unpaid wages (3 for willful violations) plus liquidated damages equal to the unpaid amount.

Is comp time legal instead of overtime pay?

In the private sector, no. Comp time in lieu of overtime pay is illegal under the FLSA. Government employees may receive comp time under specific conditions. If your private employer offers comp time, file a claim.

Official Resources

Questions about your overtime rights? Ask our AI legal assistant - available 24/7 in English and Chinese.

Official Legal Resources

Note: Always verify current laws with official .gov sources, as regulations change frequently.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Employment laws change frequently. US Legal Brain (uslegalbrain.cc) is an AI-powered information service, not a law firm. Consult a licensed employment attorney for your specific situation.