Overtime Pay Rules Under FLSA: What You're Legally Owed

The Basic Rule

The Fair Labor Standards Act (FLSA) requires that non-exempt employees be paid at least 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. This is the most fundamental labor law in the United States, and it applies to most hourly and some salaried workers.

The key word is "workweek" — not workday. Working 12 hours on Monday and 8 hours on Tuesday is 20 hours total, with no overtime. But working 50 hours in a single week triggers 10 hours of overtime, regardless of how those hours are distributed across days.

Who Qualifies for Overtime

Category	Overtime Eligible?	Why
Hourly workers (most)	Yes	Non-exempt under FLSA
Salaried under $684/week ($35,568/year)	Yes	Below the salary threshold
Salaried over $684/week + executive/admin/professional duties	No	Exempt classification
Independent contractors	No	Not employees under FLSA
Computer professionals (salary basis)	No	Specific FLSA exemption
Outside sales representatives	No	Specific FLSA exemption

The exemption rules are complex. Many employers misclassify workers as exempt when they should be eligible for overtime. If your duties are primarily non-exempt tasks and you earn less than $684/week, you likely qualify for overtime regardless of your job title.

How to Calculate Overtime Pay

The formula is straightforward:

Overtime Pay = Regular Rate × 1.5 × Overtime Hours

Example: You earn $20/hour and work 48 hours in a week.

Regular pay: 40 hours × $20 = $800
Overtime pay: 8 hours × $30 = $240
Total: $1,040

Your effective hourly rate for those 8 overtime hours is $30 — 50% more than your regular rate.

The Regular Rate Calculation

The "regular rate" isn't always your hourly wage. It includes:

Hourly wages: Your base hourly rate
Commissions: Non-discretionary commissions must be included
Bonuses: Non-discretionary bonuses (based on hours worked or production) are included
Shift differentials: If you earn more for night shifts, that's part of the regular rate
Piece rates: Converted to an hourly equivalent

Example: You earn $20/hour plus a $200 non-discretionary production bonus for the week. If you worked 48 hours:

Total compensation: (48 × $20) + $200 = $1,160
Regular rate: $1,160 ÷ 48 = $24.17/hour
Overtime rate: $24.17 × 1.5 = $36.25/hour
Overtime pay: 8 × $36.25 = $290

The bonus effectively increased your overtime rate from $30 to $36.25 per hour.

State Overtime Laws (Stricter Than FLSA)

Some states have overtime rules that exceed federal requirements:

State	Additional Rule
California	Daily overtime: 1.5x after 8 hours/day, 2x after 12 hours/day
Alaska	Daily overtime: 1.5x after 8 hours/day
Colorado	Daily overtime: 1.5x after 12 hours/day
New York	Weekly overtime after 40 hours (same as federal)
Texas	Follows federal rules (40 hours/week)

In California, if you work 10 hours on Monday, you get 2 hours of daily overtime even if you only work 35 hours total that week. This is significantly more generous than the federal 40-hour weekly threshold.

Common Employer Mistakes

"Comp time" instead of overtime: Private employers cannot offer compensatory time off instead of overtime pay. Only government employers can do this.
Averaging hours across weeks: Overtime is calculated per workweek, not over two weeks. If you work 30 hours one week and 50 the next, you're owed 10 hours of overtime for the second week — even though the two-week average is 40.
"Off the clock" work: If you're required to come in early, stay late, or work through lunch, those hours count toward overtime.
Misclassifying as exempt: Calling someone a "manager" doesn't make them exempt. The exemption requires specific duties and salary thresholds.

What to Do If You're Not Being Paid Overtime

Document your hours: Keep a personal record of all hours worked, including early arrivals, late stays, and work-from-home time.
Review your classification: Check if you meet the FLSA exemption criteria. If you don't, you should be classified as non-exempt.
Speak to your employer: Many overtime violations are mistakes, not deliberate fraud. Bring your documentation.
File a complaint: If your employer doesn't correct it, you can file a wage complaint with the Department of Labor's Wage and Hour Division.
Back pay: You can recover up to 2 years of back pay (3 years for willful violations) plus liquidated damages.

Use Our Calculator

Our Overtime Pay Calculator handles the regular rate calculation, including bonuses, commissions, and shift differentials. Enter your hourly rate, hours worked, and any additional compensation to see your exact overtime entitlement.

Frequently Asked Questions

Is overtime calculated daily or weekly?

Under federal FLSA rules, overtime is calculated weekly — after 40 hours in a workweek. Some states (like California) also have daily overtime rules. Check your state's laws for the stricter standard.

Do salaried employees ever get overtime?

Yes, if they're classified as non-exempt. This typically applies to salaried workers earning less than $684/week ($35,568/year) or those whose job duties don't meet the executive, administrative, or professional exemption tests.

Can my employer require me to work overtime?

Yes. Most employment is "at-will," meaning your employer can require you to work any hours. However, they must pay you for all hours worked, including overtime at 1.5x the regular rate.

What about holiday pay?

The FLSA doesn't require premium pay for holidays, weekends, or nights unless overtime is involved. However, many employers voluntarily offer holiday pay (1.5x or 2x). Check your employment agreement or company policy.