How Overtime Pay Works in the United States
Under the federal Fair Labor Standards Act (FLSA), covered nonexempt employees must receive overtime pay for any hours worked over 40 in a single workweek.
What is "Time-and-a-Half"?
The federal overtime rate is exactly one and one-half times (1.5x) your regular rate of pay.
Example: If your regular hourly wage is $20.00/hour, your overtime rate is calculated as:$20.00 × 1.5 = $30.00/hour
Calculating Total Pay with Overtime
If you worked 45 hours in a week at $20/hour, you do not just multiply 45 by $20. You must split your hours into two buckets: Regular and Overtime.
- Regular Pay: 40 hours × $20/hr = $800
- Overtime Pay: 5 hours × $30/hr = $150
- Total Gross Pay: $800 + $150 = $950
State-Specific Overtime Rules
While the federal rule is 40 hours per workweek, some states have stricter rules that benefit employees. Our calculator allows you to adjust the "Overtime Starts After" threshold to accommodate these rules.
For example, in California, overtime is calculated on a daily basis, not just weekly. California employees earn time-and-a-half for any hours worked beyond 8 hours in a single workday, and double-time (2.0x) for any hours worked beyond 12 hours in a single workday.
Does overtime apply to salaried employees?
It depends on whether you are classified as exempt or nonexempt. If you are an exempt salaried employee (usually meaning you meet certain salary thresholds and perform specific executive, administrative, or professional duties), you are not legally entitled to overtime pay. However, salaried nonexempt employees are still entitled to overtime pay under the FLSA.