The U.S. Department of Labor is expected to issue its new regulations governing overtime this week, and they will probably include major changes to a proposed draft that had outraged labor advocates ... Employers should plan ahead in response to changes in pay rates triggering overtime under federal law, writes attorney David Buchsbaum.

Understanding the Context

The release of the U.S. Department of Labor's new regulations ... Explore Overtime’s official shop for sports culture streetwear, training apparel, and exclusive gear. Get early access to drops, restocks, and deals on shorts, hoodies, tees, and more.

Federal Overtime Law Explained: Updated Rules, Key Facts, and More (2025)

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Federal Overtime Law Explained: Updated Rules, Key Facts, and More (2025)
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Key Insights

Overtime is the leading brand for the next generation of sports fans. As both a publisher and an influencer, we've built the inclusive world of sports we all wish was the norm by giving a platform to our community to be seen AND heard. Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. Overtime is the amount of time someone works beyond normal working hours. The term is also used for the pay received for this time.

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Final Thoughts

Normal hours may be determined in several ways: by agreement between employers and workers or their representatives. Your employer must pay you at the overtime rate for the extra hours you worked. Use the Department of Labor’s overtime pay calculator to estimate how much overtime pay you may earn. Under the Working Families Tax Cuts news, if you receive qualified overtime compensation, you may deduct the pay that exceeds your regular rate of pay. For 2025, employers aren’t required to report qualified overtime compensation separately on Forms W-2, 1099-NEC, and 1099-MISC.