How Overtime Pay Works
Under the federal Fair Labor Standards Act (FLSA), most hourly (non-exempt) employees are entitled to overtime pay at 1.5× their regular rate for any hours worked beyond 40 in a single workweek. This is commonly called "time and a half."
Overtime Pay = Hourly Rate × 1.5 × Overtime Hours
Total Pay = (Regular Hours × Hourly Rate) + Overtime Pay
Time and a Half vs. Double Time
| Multiplier | When It Applies | Example at $20/hr |
|---|---|---|
| 1.5× (Time and a Half) | Hours over 40/week — required by federal law for non-exempt employees | $30/hr for overtime hours |
| 2× (Double Time) | Not federally required — varies by state, union contract, or employer policy | $40/hr for overtime hours |
California is the most notable state requiring double time — employees who work more than 12 hours in a single day, or more than 8 hours on the 7th consecutive day of a workweek, are entitled to 2× pay.
Who Is Eligible for Overtime?
The FLSA divides workers into two categories:
- Non-exempt employees — entitled to overtime pay. Most hourly workers fall here, as well as salaried employees earning below the FLSA salary threshold (currently $684/week — a 2024 rule that would have raised this was vacated by a federal court).
- Exempt employees — not entitled to overtime. Typically salaried workers in executive, administrative, or professional roles who earn above the threshold.
Job title alone doesn't determine exempt status — the nature of the work and salary level both matter. If you're unsure, the Department of Labor's FLSA guidelines or an employment attorney can clarify.
State Overtime Laws
Some states have stricter overtime rules than federal law. Notable examples:
- California: Overtime after 8 hours/day (not just 40/week). Double time after 12 hours/day or on the 7th consecutive day.
- Alaska: Overtime after 8 hours/day or 40 hours/week.
- Nevada: Overtime after 8 hours/day for employees earning under 1.5× the minimum wage.
- Colorado: Overtime after 12 hours/day or 40 hours/week.
When state law is more generous than federal law, the state law applies.
Frequently Asked Questions
How is overtime pay calculated?
Under the federal Fair Labor Standards Act (FLSA), overtime is paid at 1.5× (time-and-a-half) your regular rate for all hours worked over 40 in a workweek. Some employers or states pay 2× for holidays or hours over 12 in a day.
Does overtime apply to salaried employees?
Not automatically. Salaried employees classified as 'exempt' under FLSA rules are not entitled to overtime. Salaried non-exempt employees — generally those earning below the DOL salary threshold — are entitled to overtime pay.
Is overtime pay taxed differently?
Overtime wages are taxed as regular income — there is no special overtime tax rate. However, a larger paycheck may temporarily push withholding higher because employers use the annualized income method to calculate withholding.
What is time and a half for $15/hour?
Time and a half for $15/hour is $22.50/hour ($15 × 1.5).
What is time and a half for $20/hour?
Time and a half for $20/hour is $30/hour ($20 × 1.5).
What is time and a half for $25/hour?
Time and a half for $25/hour is $37.50/hour ($25 × 1.5).
Can my employer refuse to pay overtime?
If you're a non-exempt employee under the FLSA, your employer is legally required to pay overtime for hours over 40 in a workweek. They can, however, require you to work overtime or discipline you for unauthorized overtime — but they must still pay it.