Ch2. Working Hours and Rest — FLSA Overtime Rules and Compensable Time

Standard Working Hours

FLSA § 7: Covered non-exempt employees must receive overtime pay at 1.5 times their regular rate for all hours worked beyond 40 in a workweek.

Workweek: any fixed, regularly recurring period of 168 hours (7 consecutive 24-hour periods). The employer sets the start day.

Scheduled (Agreed) Hours

Scheduled hours: the hours an employer and employee agree to as the normal workweek, which also determines the regular rate of pay.

Part-time: employees regularly scheduled for fewer than 35 hours per week are considered part-time and may not qualify for certain employer benefits.

Overtime Work

Overtime: any hours worked beyond 40 in a single workweek.

Limits

There is no federal cap on the total hours a non-exempt employee may work in a week, but all hours beyond 40 must be compensated at the overtime rate.

State exceptions (daily overtime):

California, Nevada, and a few other states require daily overtime after 8 hours in a day.

Permissible variations:

Bona fide collective bargaining agreements may allow alternative overtime schedules.

Overtime Pay Rates

Type	Premium Rate	Trigger
Weekly overtime	1.5× regular rate	Over 40 hrs/week
Daily overtime (CA)	1.5× regular rate	Over 8 hrs/day
Double time (CA)	2× regular rate	Over 12 hrs/day
Sunday/holiday premium	Varies by CBA	As agreed or required by state law

Stacking: where state law requires both daily and weekly overtime, the employee receives whichever calculation yields the higher amount.

Small employer note: FLSA overtime applies regardless of business size when individual or enterprise coverage exists.

Exempt Employees

Certain employees are exempt from FLSA overtime requirements:

Executive exemption: primary duty is management; supervises 2+ employees; has authority to hire/fire
Administrative exemption: primary duty is office/non-manual work directly related to management; exercises discretion and independent judgment
Professional exemption: primary duty requires advanced knowledge in a field of science or learning, typically requiring a specialized degree; or creative/artistic work
Outside sales exemption: primary duty is making sales away from the employer’s place of business
Computer employee exemption: software engineers and similar roles meeting salary/duties tests

Current salary threshold (2024 DOL rule): $684/week ($ 35,568/year) for white-collar exemptions.

Employees who do not satisfy both the salary and duties tests remain non-exempt and are entitled to overtime.

Flexible Work Arrangements

The FLSA allows alternative scheduling arrangements so long as all earned overtime is paid.

Compressed Workweek

Working more hours on some days or weeks in exchange for fewer hours on others, while the total workweek still controls overtime calculations.

Example: 4×10 (four 10-hour days) — no overtime if total hours are 40; any additional hours trigger 1.5×.

Averaging arrangements: the FLSA does NOT permit employers to average hours across multiple weeks to avoid overtime. (Some CBAs for fire departments and hospitals may allow longer reference periods under § 7(b) and § 7(k).)

Flexible Scheduling (Flextime)

Employees choose their start and end times within set core hours. Total workweek hours still govern overtime obligations.

Conditions: written agreement, compliance with FLSA record-keeping, and applicable state rest-break laws.

Field / Remote Work

For employees who work away from the principal place of business:

General rule: all hours under the employer’s control must be counted
Continuous workday doctrine: time between the first and last principal activity of the workday is compensable
Portal-to-Portal Act: ordinary commuting time is not compensable; however, travel required as part of the job is compensable

Rest Breaks and Meal Periods

Federal rule: the FLSA does not require rest or meal breaks, but when an employer provides them:

Short rest breaks (5–20 min): counted as compensable work time
Bona fide meal periods (30+ min): not compensable if the employee is completely relieved of duties

State requirements: most states mandate rest breaks (typically 10 minutes per 4 hours worked) and 30-minute unpaid meal periods for shifts of 6+ hours.

Weekly Day Off

FLSA: does not require a day off each week. However:

Many states require one day of rest in seven for retail or factory workers.
CBAs and employer policies frequently guarantee a weekly day off.

Premium pay for scheduled days off: required only when CBAs or employer policy provides for it; not mandated by federal law alone.

Part-time premium pay: State laws vary; some states require that employees scheduled for fewer than certain minimum hours per week receive a minimum shift pay guarantee.

Public Holidays

Federal law: there is no federal requirement to provide paid holidays or premium pay for work on holidays.

Executive Order and federal employees: federal employees observe designated federal holidays.
Private employers: holiday pay is a matter of employer policy or CBA.
State laws: a handful of states require premium pay for work on certain holidays (Rhode Island, Massachusetts, etc.).

Salary Misclassification and “Exempt” Abuse

Salary misclassification: improperly classifying a non-exempt employee as exempt to avoid paying overtime.

Legal validity:

Courts examine both salary level AND actual job duties; a high salary alone does not create an exemption.
If an employee’s actual work is non-exempt, the employer owes back overtime regardless of the job title.

Common violations:

Labeling workers “managers” or “assistant managers” when they spend most of their time on the same tasks as hourly employees.
Paying a fixed salary that falls below the DOL threshold.

Response: keep detailed records of actual hours worked; report suspected misclassification to the Department of Labor Wage and Hour Division.

Penalties for Violations

Violation	Penalty
Failure to pay overtime	Back wages + equal amount as liquidated damages
Willful FLSA violation	Criminal fines up to $10,000; imprisonment up to 6 months (2nd offense)
Retaliation against employee	Reinstatement, back wages, additional damages
Failure to maintain records	Civil monetary penalties

Learning Checklist

I can explain the 40-hour FLSA workweek and when overtime is triggered
I can calculate overtime at 1.5× the regular rate
I can describe the three main white-collar exemptions and their tests
I can explain when rest breaks and meal periods are compensable
I can identify the key risks of salary misclassification

Core Concept Cards

Separation of Powers ★★★ : Legislative (Congress), executive (President/agencies), and judicial (courts) functions are separated and provide mutual checks and balances.

Presidential Term and Succession ★★★★ : US President serves a 4-year term; limited to two terms by the 22nd Amendment. Elected by the Electoral College.

Constitutional Court Review Types ★★★★ : US courts issue: constitutional, unconstitutional, or savings constructions. Courts apply rational basis, intermediate scrutiny, or strict scrutiny depending on the right and classification at issue. Memory tip: higher scrutiny = harder for the government to win

Congressional Immunity ★★★ : Speech or Debate Clause: Members of Congress may not be questioned in any other place for their legislative acts. Does not protect non-legislative conduct (e.g., bribery).

Practice Quiz

Q. How long is the US presidential term, and how many terms may a president serve?

4 years; maximum 2 terms (22nd Amendment).

Q. Under the FLSA, what must an employer prove to classify an employee as exempt from overtime?

The employer must show the employee satisfies both the salary threshold (currently $684/week) AND the duties test for one of the recognized exemptions (executive, administrative, professional, etc.).

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