Worked more than 40 hours this week? Federal law probably says those extra hours are worth 50% more. Here is exactly how overtime works, who qualifies, how to calculate it, and where workers most often lose money without noticing.
The basic rule: 40 hours, then time-and-a-half
The Fair Labor Standards Act (FLSA) — the federal law that sets minimum wage and overtime rules in the United States — requires covered employers to pay non-exempt employees at least one and a half times their regular rate of pay for every hour worked over 40 in a workweek. That premium rate is universally nicknamed "time-and-a-half": you receive your normal pay for the hour, plus a half-rate premium on top. If your regular rate is $20 an hour, your overtime rate is $30 an hour. Work 46 hours in a week and your gross pay is (40 × $20) + (6 × $30) = $800 + $180 = $980.
Three details in that rule matter more than most workers realize. First, overtime is measured by the workweek — a fixed, recurring period of seven consecutive days set by your employer — not by the day and not by the pay period. Second, it counts hours actually worked: paid vacation, holidays and sick days generally do not count toward the 40, because you did not work them. Third, the weeks stand alone. A 50-hour week followed by a 30-hour week is not an "average" of 40 and 40; the first week earns 10 overtime hours, full stop.
Who gets overtime — and who does not
Overtime rights depend on whether you are classified as non-exempt (covered) or exempt (not covered). Nearly all hourly workers are non-exempt. Salaried workers can be either: an employee is exempt only if they pass two tests set by the US Department of Labor — a salary basis test (paid a fixed salary above a minimum threshold, not docked for partial weeks) and a duties test (their actual job duties must be primarily executive, administrative, professional, outside-sales, or certain computer roles, as the regulations define them).
The most common misunderstanding in American workplaces is that a job title or the mere fact of a salary settles the question. It does not. A salaried "assistant manager" who mostly stocks shelves and runs a register may well be non-exempt and owed overtime, regardless of the title on the offer letter. Misclassification — sometimes accidental, sometimes not — is one of the most frequent sources of wage claims. If you are paid a salary, regularly work well beyond 40 hours, and your duties look a lot like the hourly staff around you, it is worth reading the Department of Labor's fact sheets or asking your state labor agency how the tests apply.
How the "regular rate" is really calculated
Time-and-a-half multiplies your regular rate, which is not always the same as your base hourly wage. Federal rules say the regular rate includes most forms of pay for the week: base wages, shift differentials, and non-discretionary bonuses (the kind promised in advance for hitting a target, staying through a busy season, or perfect attendance). The general formula is: total pay for the week (excluding the overtime premium itself) ÷ total hours worked.
Here is why that matters. Suppose you earn $18 an hour, work 44 hours, and also earned a $44 weekly production bonus. Your total straight-time pay is (44 × $18) + $44 = $836, so your regular rate is $836 ÷ 44 = $19.00. Your overtime premium is half of that rate — $9.50 — for each of the 4 overtime hours: $38 extra. Total gross: $836 + $38 = $874. If payroll simply paid 1.5 × $18 for the overtime hours, you would get $866 — close, but $8 short, week after week. Small gaps like this are exactly what a personal hours-and-pay log helps you catch. Our Overtime Pay Calculator uses your base rate for a quick estimate; use your pay stub's stated regular rate for exact figures.
Double time and state rules that pay more
Federal law never requires double time (2×). But some state laws and many employment contracts do. California is the best-known example: overtime there is generally time-and-a-half after 8 hours in a day and double time after 12 hours in a day, with special rules for the seventh consecutive day of work. Alaska, Colorado and Nevada also have daily-overtime provisions in some form. Union agreements, hospital schedules and holiday policies often add double time voluntarily. The practical lesson: federal law is the floor, not the ceiling — your state law, employee handbook or contract may give you more, and the most generous applicable rule is the one that counts.
Common ways workers lose overtime money
- Working "off the clock": answering messages, setting up, or finishing tasks before clocking in. Time you work is time that counts, whether or not anyone approved it in advance — though an employer may discipline you for violating an overtime-approval policy, it generally still has to pay for hours it knew or should have known you worked.
- Automatic meal deductions: some time systems deduct 30 minutes for lunch whether you took it or not. If you regularly work through lunch, that is 2.5 phantom unpaid hours a week.
- Being called "exempt" or an "independent contractor" without meeting the tests. Labels do not override duties and economic reality.
- Comp time instead of cash: private-sector employers generally cannot bank your overtime as future paid time off in place of overtime pay (public-sector employers can, under specific rules).
- Salary-only thinking: "I'm salaried, so overtime isn't a thing." For non-exempt salaried workers, it absolutely is — the salary is converted to a regular rate and hours over 40 are paid at time-and-a-half on top.
What to do if your overtime looks wrong
Start by keeping records: dates, start and stop times, breaks, and your pay stubs. Compare your stub against your log using the calculation method above. Many discrepancies are honest payroll errors, and a calm conversation with payroll — with your records in hand — fixes most of them. If that fails, you can file a wage claim with your state labor department or a complaint with the US Department of Labor's Wage and Hour Division, which investigates and can recover back wages. There are time limits on claims (generally two years under the FLSA, three if the violation was willful), so do not sit on a problem. Keeping two years of stubs and logs is a habit worth building today, not after something goes wrong.
Practical tip: Photograph or save every pay stub and keep a simple hours log in a notes app — date, in, out, break. It takes ten seconds a day and turns any future pay dispute from an argument into arithmetic.
Try it: estimate your own overtime week with the Overtime Pay Calculator, then convert your yearly earnings with the Hourly to Salary Calculator.