The law requires that employees be paid for overtime hours worked at a rate of 1 Â½ times their regular rate of pay (unless the employee is exempt from the provision). Overtime is defined as more than 40 hours worked in a work week. It requires significant record keeping for compliance. Employees may be exempt from this law if they meet 3 tests in regard to: 1. Salary Level 2. Salary Basis 3. Job Duties The FLSA was updated in 2004. The information below is designed to assist you in determining whether an employee is exempt from the FLSA.