Who is eligible for overtime pay under the FLSA?

Non-exempt employees are eligible for overtime. Most hourly workers are non-exempt. Some salaried employees may also be non-exempt if their salary is below $684/week ($35,568 annually) or their job duties don't meet executive, administrative, professional, computer, or outside sales criteria. Exempt employees do not receive overtime.

How is overtime pay calculated?

Overtime pay = Regular hourly rate × 1.5 × number of overtime hours (hours over 40 in a workweek). For example, if you earn $20/hour and work 48 hours, your pay = ($20 × 40) + ($20 × 1.5 × 8) = $800 + $240 = $1,040.

Do salaried employees get overtime?

It depends on classification. Exempt salaried employees do NOT receive overtime. Non-exempt salaried employees DO receive overtime. Check your job duties and salary level. If you're non-exempt, you're legally entitled to 1.5x pay for hours over 40 regardless of being paid a salary.

What states have overtime laws that are more protective than federal law?

Several states have stricter rules: California (overtime after 8 hours/day or 40/week, double time after 12 hours/day), Colorado (overtime after 12 hours/day or 40/week), New York (industry-specific rules), and others. When state law provides greater employee protections, it supersedes federal law.

What is double time and when does it apply?

Double time means pay at 2x your regular hourly rate. Federal law does not require double time, but some states mandate it for certain hours (e.g., California: after 12 hours in a day or after 8 hours on the 7th consecutive day). Employers may also offer double time via contract or company policy.

Can my employer require me to work off-the-clock?

No. Under the FLSA, non-exempt employees must be compensated for all hours worked. Employers cannot require you to perform work 'off the clock' without pay. If your employer asks you to work outside your scheduled hours, you should be paid for that time. Off-the-clock work violates federal law.

How Overtime Pay Works - FLSA Rules, Calculation, Eligibility

The Fair Labor Standards Act (FLSA)

Overtime pay in the United States is governed by the Fair Labor Standards Act (FLSA), a federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for private sector and federal government employees.

Basic Overtime Rule

Under the FLSA, covered non-exempt employees must receive overtime pay for hours worked over 40 in a workweek at a rate of at least 1.5 times their regular rate of pay. This is commonly known as "time and a half."

Overtime Pay = Regular Hourly Rate × 1.5 × Overtime Hours

Example Overtime Calculation

Employee earns $20/hour and works 48 hours in a week:

Regular pay (40 hours): $20 × 40 = $800
Overtime pay (8 hours): $20 × 1.5 × 8 = $240
Total pay: $1,040

Without overtime, those 48 hours would be paid at regular rate: $20 × 48 = $960. Overtime adds an extra $80.

Who is Eligible for Overtime?

Non-Exempt Employees

Most hourly workers are classified as non-exempt and are entitled to overtime. Some salaried employees may also be non-exempt if their salary is below the salary threshold or their job duties don't meet exemption criteria.

Exempt Employees

Certain employees are exempt from overtime requirements. To be classified as exempt, an employee generally must:

Be paid on a salary basis (not hourly)
Earn at least the minimum salary threshold (currently $684/week or $35,568 annually)
Perform primarily executive, administrative, professional, computer, or outside sales duties

Exempt employees do not receive overtime pay regardless of hours worked over 40.

State-Specific Overtime Laws

Many states have enacted overtime laws that are more protective than federal law. For example:

California: Overtime after 8 hours/day or 40 hours/week; double time after 12 hours/day or 8 hours on the 7th consecutive day
Colorado: Overtime after 12 hours/day or 40 hours/week
New York: Different rules for certain industries

When state and federal laws differ, the law providing greater employee protections applies.

Common Overtime Scenarios

Double Time

Some employers pay double the regular rate (2x) for certain overtime hours, such as holidays or excessive overtime. This is not required by federal law but may be specified in employment contracts or collective bargaining agreements.

Unauthorized Overtime

Employers must pay for all hours worked, even if overtime was not authorized. However, employers can have policies requiring advance approval for overtime. Refusing to work unauthorized overtime is generally protected.

Off-the-Clock Work

Employers cannot require non-exempt employees to perform work "off the clock" without compensation. All hours worked must be paid.

Calculating Your Overtime

Use our Overtime Calculator to quickly determine your overtime earnings. You'll need to know:

Your regular hourly rate
Number of overtime hours worked
Overtime multiplier (1.5x standard, 2x double time)

The calculator will show your overtime pay and equivalent regular hours.

Related Resources

To better understand your compensation:

Calculate your hourly to annual salary including overtime
Determine if you're properly classified as exempt vs non-exempt
Estimate your take home pay after overtime earnings
Use our tax estimator to see how overtime affects your taxes

Know Your Rights

If you believe you're incorrectly classified as exempt or not receiving required overtime pay, you may have legal recourse. Document your hours and pay, and consider speaking with your state's Department of Labor or an employment attorney.

Remember: overtime is a protection for workers, not a privilege. Understanding how it works ensures you're fairly compensated for your time.