Overtime Pay Guide in the USA

1. The federal overtime rule

Under the Fair Labor Standards Act (FLSA), covered, nonexempt employees must receive at least 1.5 times their regular rate of pay for hours worked beyond 40 in a workweek. A workweek is a fixed, recurring 168-hour period: seven consecutive 24-hour days. It need not start on Monday, but an employer cannot average a 50-hour week against a 30-hour week to avoid overtime.

Federal law does not ordinarily require overtime after eight hours in one day, or merely for working Saturday, Sunday, or a holiday. The hours still count toward the weekly total. State laws, union agreements, or employer policies can give workers additional rights. See the DOL overtime fact sheet for the federal baseline.

“Time and a half” means the full overtime hourly rate, not an extra 1.5 times on top of wages already paid for those hours. If straight-time wages for every hour are already included in pay, only the additional half-time premium may remain due.

2. Who qualifies for overtime?

Most covered hourly workers are nonexempt, but an hourly label alone is not the legal test. Common white-collar exemptions for executive, administrative, and professional employees depend on actual job duties, payment on a salary basis, and a minimum salary level. A title such as “manager” or “coordinator” does not establish an exemption.

As of this guide’s publication, the general federal salary level for those exemptions is $684 per week ($35,568 annually), after the 2024 salary rule was vacated. Meeting that pay level alone does not make someone exempt; the duties and salary-basis tests also matter. Some occupations have different tests, and some states set higher standards. Check the DOL’s current salary-level page before relying on this figure.

A salaried nonexempt employee is still eligible for overtime. How to compute it depends on what the salary is understood to cover; simply dividing every salary by 40 and multiplying by 1.5 is not correct in every arrangement. For a deeper breakdown, read our salaried nonexempt overtime guide.

3. How to calculate overtime pay

1. Count hours actually worked in one defined workweek. An unpaid break generally does not count if no work is performed; paid leave generally does not count as hours worked under federal law.
2. Find the regular rate. For a simple single-rate hourly job with no additional included compensation, it is your hourly wage.
3. Subtract 40 from hours worked (if positive), then multiply those overtime hours by the regular rate × 1.5.
4. Add regular-hour pay and overtime-hour pay; check whether state rules require a larger amount.

For daily thresholds and double time, the arithmetic changes. Use our step-by-step overtime formula and examples or free state-aware calculator.

4. The regular rate: bonuses, commissions, and multiple rates

The regular rate is not always the number on your hourly-rate line. Nondiscretionary bonuses, commissions, and many shift differentials generally count. A genuinely discretionary bonus may be excluded if it meets the legal conditions. Bonuses earned across several weeks may need to be allocated to those weeks. See DOL Fact Sheet #56C.

Multiple pay rates, piece rates, tips, and salary agreements require more care; the specific legal method may differ. Compare your pay stub with our overtime bonus calculator or consult your labor agency.

5. State overtime: the federal rule is a floor

When both federal and state overtime laws apply, the worker receives the protection that yields the greater entitlement, without stacking the same overtime hours twice. Daily rules, seventh-day rules, exemptions, and wage thresholds differ by state and sometimes by occupation.

For your location, choose one of the 50 state guides. For side-by-side thresholds, see the 2026 state overtime table. Always verify current rules with the relevant state labor department.

6. Common situations that change the answer

Working off the clock

If an employer knows or has reason to know work is being done, that time may be compensable even when it was not scheduled or approved. Keep your own accurate records.

Overtime was not authorized

An employer can set schedules and discipline rule violations, but generally cannot refuse to pay for overtime it permitted or suffered to be worked.

Weekend or holiday work

Federal law does not automatically require a premium for these days. Count the hours in the workweek and check state law or your contract. Read the holiday overtime guide and calculator.

Comp time instead of cash

Private employers generally cannot substitute future time off for overtime required under the FLSA. Special rules allow qualifying public agencies to provide compensatory time.

Special industries

Healthcare facilities may use an eligible 8-and-80 system with a prior agreement; some workers face special exemptions or industry rules. Our overtime tools hub points to focused guides.

7. What to do if overtime pay is missing

1. Write down the start and end of your employer’s workweek. Save schedules, time records, messages, pay stubs, and any bonus or commission terms.
2. Reconstruct the hours actually worked each week. Compare gross wages paid to the regular rate and overtime owed; use the calculator as an estimate, not a legal determination.
3. Ask payroll about the discrepancy in writing, if safe to do so. If unresolved, contact the DOL Wage and Hour Division, your state labor office, or an employment attorney. Deadlines can apply, so do not wait indefinitely.

This guide is general educational information, not legal advice. Individual coverage, exemptions, and remedies depend on the facts and applicable law.