Understanding Overtime Pay and Federal Law

Overtime pay is a crucial part of compensation for hourly workers. Under federal law, most employees are entitled to premium pay rates when working beyond standard hours. This calculator helps you quickly determine your gross earnings when overtime kicks in, whether you're paid time-and-a-half or double-time rates.

The Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act is the federal law that governs overtime pay in the United States. Enacted in 1938 and updated numerous times, the FLSA establishes several key requirements:

40-hour workweek threshold: Non-exempt employees must receive overtime for hours worked beyond 40 in a single workweek
Minimum 1.5x rate: Overtime must be paid at least time-and-a-half (1.5x) the regular hourly rate
Workweek definition: A workweek is any fixed, recurring period of 168 hours (7 consecutive 24-hour periods)
No daily limit: Federal law doesn't require overtime for working more than 8 hours in a day (though some states do)

It's important to note that the FLSA only sets the minimum standard. Employers can offer more generous overtime policies, such as double-time rates or overtime after fewer hours. Additionally, some states have stronger overtime protections than federal law.

How to Calculate Overtime Pay

The formula for overtime pay is straightforward once you know your regular rate and overtime multiplier:

Calculate regular pay: Regular hourly rate × Regular hours worked
Calculate overtime rate: Regular hourly rate × Overtime multiplier (usually 1.5)
Calculate overtime pay: Overtime rate × Overtime hours worked
Total gross pay: Regular pay + Overtime pay

Example Calculation:

Sarah earns $18/hour and worked 50 hours this week (40 regular + 10 overtime at 1.5x):

Regular pay: $18 × 40 hours = $720
Overtime rate: $18 × 1.5 = $27/hour
Overtime pay: $27 × 10 hours = $270
Total gross pay: $720 + $270 = $990

Time-and-a-Half vs. Double-Time

While federal law requires only 1.5x overtime pay, many employers offer double-time (2.0x) in certain situations:

Excessive hours: Some companies pay 2x for hours beyond a certain threshold (e.g., over 60 hours/week)
Holidays: Working on major holidays often earns double-time or even triple-time premium pay
7th consecutive day: California law, for example, requires double-time for work on the 7th consecutive day
Union contracts: Collective bargaining agreements frequently stipulate enhanced overtime rates

Who Is Eligible for Overtime?

Not all employees are entitled to overtime pay. The FLSA classifies workers as either exempt or non-exempt. Non-exempt employees receive overtime, while exempt employees generally do not. Common exempt categories include:

Executive, administrative, and professional employees (meeting salary and duty tests)
Computer professionals earning above $27.63/hour or $684/week
Outside sales employees
Certain commissioned employees in retail or service

Note: This calculator provides estimates for planning purposes. Actual overtime eligibility depends on your job classification, state laws, and employment contract. Consult your HR department or a labor attorney for specific guidance.

Frequently Asked Questions

Do I get overtime if I work more than 8 hours in a day?

Under federal law, no. The FLSA only requires overtime after 40 hours in a workweek, not based on daily hours. However, some states like California require overtime after 8 hours in a day or 40 hours per week, whichever provides more compensation.

Can my employer refuse to pay overtime?

No, if you're a non-exempt employee and worked more than 40 hours in a workweek, your employer is legally required to pay overtime. Refusing to pay earned overtime wages is a violation of federal law and may result in penalties.

What if I'm salaried? Do I still get overtime?

It depends. Being salaried doesn't automatically make you exempt from overtime. You must meet specific salary and job duty tests. As of 2024, the minimum salary for most exempt employees is $684 per week ($35,568 annually), and your job must primarily involve executive, administrative, or professional duties.

Does overtime count toward my 40-hour threshold?

No. The calculation is: the first 40 hours are paid at regular rate, and only hours beyond 40 receive the overtime premium. For example, if you work 50 hours, you get regular pay for 40 hours and overtime pay for 10 hours.

Can I waive my right to overtime pay?

No. Under the FLSA, you cannot waive your right to overtime pay. Any agreement to work for less than the legally required overtime rate is not enforceable, even if you signed a contract agreeing to it.

Related Calculators You Might Need

Maximize your wage knowledge with these related tools:

Overtime Pay Calculator