What Is the Overtime Rate of Pay? FLSA Rules Explained (2026)

The Federal Overtime Rate in 2026

Under the Fair Labor Standards Act (FLSA), the overtime rate of pay is 1.5 times an employee's regular rate for every hour worked over 40 in a workweek. This is commonly called "time and a half."

What Is the "Regular Rate of Pay"?

The "regular rate" is not always your stated hourly wage. It includes most forms of compensation.

Included in the regular rate: hourly wages, salary (divided by hours the salary covers), non-discretionary bonuses (production, attendance, safety), shift differentials (night, weekend premiums), commissions, and piece-rate earnings.

Excluded from the regular rate: discretionary bonuses (truly unexpected gifts), paid time off (vacation, sick, holiday pay), reimbursed expenses, profit-sharing contributions, and gifts on special occasions.

Calculating the Regular Rate with a Bonus

Example: An employee earns $20/hour, worked 45 hours, and got a $100 production bonus.

• . Straight-time earnings = 45 × $20 = $900
• . Total compensation = $900 + $100 = $1,000
• . Regular rate = $1,000 ÷ 45 = $22.22/hour
• . Overtime premium owed = 5 × ($22.22 × 0.5) = $55.56
• . Total pay = $1,000 + $55.56 = $1,055.56

Many employers forget step 4 — costing workers thousands in lost wages.

When Does Double Time (2×) Apply?

There is no federal double-time requirement. It is required only by:

• California — after 12 hours/day; after 8 hours on the 7th consecutive workday
• Union contracts — many CBAs require 2× on Sundays, holidays, or after a certain daily threshold
• Some federal contractors — under specific contract terms

Try our California Overtime Calculator to see daily 1.5× and 2× calculations live.

Overtime Rate for Salaried Non-Exempt Workers

If you're salaried but not exempt:

• . Convert your weekly salary to an hourly rate: Salary ÷ Hours the salary is intended to cover
• . Multiply by 1.5 for the overtime rate
• . Pay 1.5× for every hour over 40

Example: $700/week salary for 40 hours → $17.50/hour → $26.25/hour overtime rate.

Who Is Exempt from the Overtime Rate?

Workers exempt from overtime in 2026 generally include executive, administrative, and professional employees earning $684+/week who pass the duties test; outside salespeople; computer professionals earning $27.63/hour or more; highly compensated employees earning $107,432+/year; and specific transportation, agricultural, and seasonal workers. Just being salaried or having a fancy title does not make you exempt.

State Variations on the Overtime Rate

| State | Overtime Rate | Trigger |

|---|---|---|

| Federal (FLSA) | 1.5× | 40 hrs/week |

| California | 1.5× / 2× | 8 hrs/day / 12 hrs/day |

| Alaska | 1.5× | 8 hrs/day or 40 hrs/week |

| Colorado | 1.5× | 12 hrs/day or 40 hrs/week |

| Nevada | 1.5× | 8 hrs/day (low-wage only) |

Calculate Your Exact Overtime Pay

Use our free Overtime Pay Calculator — it handles bonuses, multiple rates, and state-specific rules automatically.

Frequently Asked Questions

What is the overtime pay rate for $15 an hour?

$15 × 1.5 = $22.50/hour for every overtime hour.

Is overtime always paid at 1.5×?

Federally, yes. State laws or union contracts may require 2× for certain hours.

Are bonuses included in the overtime rate?

Non-discretionary bonuses must be included. Discretionary year-end gifts do not.

Can my employer pay me a flat overtime rate?

Only if it equals or exceeds 1.5× your true regular rate including bonuses and shift premiums.

Run your own numbers

Enter your wage in the time and a half calculator to see your exact overtime rate, or use the FLSA overtime calculator to check the federal 40-hour trigger against your schedule.