By LCTeam In the United States, overtime pay has long been a key part of federal labor protections. Failing to pay legally required overtime is not only unfair it is illegal under federal law and, in many cases, state law. Employers who violate overtime rules may face financial penalties, lawsuits, and federal enforcement actions.
Understanding overtime requirements is essential for both workers and employers. Let’s analyze what the law says, who qualifies for overtime, and what consequences apply when employers ignore wage laws.
What the Law Says About Overtime
Federal Overtime Law (FLSA)
The Fair Labor Standards Act (FLSA) requires most employees to receive overtime pay at 1.5 times their regular rate for all hours worked over 40 hours in a workweek.
If an employer fails to pay overtime when required, they are violating federal law.
Who Must Be Paid Overtime?
Under the FLSA, most workers are “non-exempt,” meaning they are legally entitled to overtime pay. However, some employees are “exempt” if they meet all of the following requirements:
- Paid on a salary basis
- Earn above the federal salary threshold
- Perform specific executive, administrative, or professional job duties
As of 2024-2025, the salary threshold has increased in phases. If an employee earns less than the updated federal minimum salary, they must receive overtime — no matter what job title they hold.
State Overtime Laws
Some states have even stronger overtime rules than federal law. For example:
- California requires overtime after 8 hours a day.
- Colorado and Washington have higher salary thresholds.
- New York has additional rules based on region and industry.
In states with stricter standards, employers must follow the law most favorable to the employee.
What Makes It Illegal Not to Pay Overtime?
An employer violates overtime laws if they:
- Refuse to pay overtime even though the employee is eligible
- Misclassify an employee as “exempt” to avoid overtime payments
- Pay a salary but still require more than 40 hours a week without extra pay
- Ask employees to “work off the clock”
- Fail to count certain hours, such as training or on-call time
These practices are unlawful and can lead to serious penalties.
Penalties for Not Paying Overtime
In 2025, the consequences for failing to pay overtime can include:
1. Back Pay
The employer must repay all unpaid overtime wages.
2. Liquidated Damages
In many cases, employers must pay double the owed amount as a penalty.
3. Civil Penalties
The U.S. Department of Labor (DOL) can impose additional fines for willful violations.
4. Lawsuits
Employees can sue individually or as part of a class action. Courts may award:
- Back wages
- Double damages
- Attorney’s fees
- Court costs
5. Criminal Penalties (Rare)
For repeated or intentional violations, criminal prosecution is possible under federal law.
Common Misconceptions About Overtime
“My employer says I’m salaried, so I don’t get overtime.”
False. Salary alone does not determine exemption.
“My job title says manager, so I must be exempt.”
False. Job duties — not titles — determine exemption.
“I agreed not to take overtime pay.”
Invalid. Workers cannot waive their rights under federal law.
What Employees Should Do if They Aren’t Paid Overtime
If a worker believes they were illegally denied overtime, they can:
- Document hours worked
- Request pay correction from HR
- File a wage complaint with the Department of Labor
- Consult an employment attorney
The law protects workers from retaliation for raising wage concerns.
Conclusion
Yes, it is absolutely against the law to not pay overtime when required. The rules under the FLSA and state labor laws are clear: eligible workers must receive overtime pay for extra hours. Employers who ignore these obligations risk substantial legal and financial consequences. Understanding the law helps ensure fair treatment in the workplace and strengthens compliance across all industries.