Your Rights in the Workplace: Minimum Wage and Overtime Rules

Your Rights in the Workplace: Minimum Wage and Overtime Rules

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Overtime pays at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek. 

What is the minimum wage?

The current federal standard for covered nonexempt workers being entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Additionally, most states have their own minimum wage laws that require a higher rate of pay. For example, the minimum wage in Illinois is $13.00 per hour in 2023. Employers must pay whichever minimum wage rate is higher.

To find out the minimum wages in the 50 states and the District of Columbia, go to the DOL website. and select your state from the list. You can also contact your state labor department for information; you’ll find contact information on the U.S. Department of Labor website.

In addition, some cities and counties have enacted so-called “living wage” ordinances, which require certain employers to pay a higher minimum wage. Many of these laws cover only employers that have contracts with, or receive subsidies from, the state or county. However, some apply more broadly to private employers in the area. In Chicago, for example, employers with between 4 and 20 employees must pay $14.50 per hour, while employers with more than 20 employees must pay $15.40 per hour. To find out whether your area has a living wage ordinance, contact your local government offices.

How can I find out whether I am entitled to overtime pay?
First, check to see whether your employer is covered by the FLSA or your state’s wage and hour law. Because the treatment of these laws is so broad, you can be fairy sure that your employer must comply with them. The next step is to figure out whether you are considered an “exempt” employee under these laws: If you are exempt, then you are not entitled to overtime.
The FLSA exemptions for certain workers are:

• farmworkers
• transportation workers
• newspeople
• outside salespeople
• independent contractors
• certain computer specialists, including computer system analysts, programmers, and software engineers, as long as they are paid at least $27.63 per hour or at least $684 per week.
• employees of seasonal amusement or recreational businesses
• employees of motion picture theaters, and commissioned employees of retail or service businesses, if their regular rate of pay is more than one and a half times the minimum wage and more than half their pay comes from commissions.

Executive, Administrative, and Professional workers are Exempt
The biggest category of exempt workers that employers are most likely to try to shoehorn into exempt status are executive, administrative, and professional workers. To fall under one of these exemptions, you must receive at least $684 per week on a salary basis—meaning that you are paid the same amount each week, regardless of the quality or quantity of your work. You must also have particular qualifications and/or perform particular duties, such as routinely exercising discretion, supervising other employees, making high level decisions, having an advanced degree, or working in a creative field. However, some employers—in an effort to avoid paying overtime—claim that their employees fall into one of these categories even though the employees actually perform fairly routine tasks.

Independent Contractors Are Exempt
The Fair Labor Standards Act covers only employees, not independent contractors, who are considered independent businesspeople. The FLSA was passed to rein in employers who cheat workers of their fair wages. As a result, employee status is broadly interpreted so that as many workers as possible are protected by the law. In recent cases on this issue, courts have leaned toward classifying workers as employees rather than independent contractors. A worker is more likely to be considered an independent contractor under the FLSA when the worker:

• is retained for a definite period of time or on a project basis
• is not performing work that is an integral part of the employer’s business
• has an opportunity to make a profit or suffer a loss
• has invested in facilities and equipment
• competes in the open market and is not economically dependent on one business, and
• has control over how and when the work is performed.

Can my boss make me work overtime?
Under the federal FLSA, your employer can require you to work overtime and can even fire you if you refuse to do so. The FLSA does not limit the number of hours in a day or days in a week that an employer can schedule an employee to work. It only requires employers to pay nonexempt employees' overtime (one and a half times the worker’s regular rate of pay) for any hours over 40 that the employee works in a week. However, your state law may provide additional rights, such as the daily overtime, etc.