Understanding Overtime Pay
Know your rights and calculate your overtime earnings correctly
Federal Overtime Rules (FLSA)
Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay of at least 1.5 times their regular rate for all hours worked over 40 hours in a workweek.
Non-Exempt (Eligible)
- • Hourly employees
- • Salary under $35,568/year
- • Non-management roles
- • Manual labor positions
Exempt (Not Eligible)
- • Executive/Management
- • Professional (licensed)
- • Administrative (office work)
- • Salary over $35,568/year
Types of Overtime Pay
Time and a Half
Standard overtime rate. Required by federal law for hours over 40/week. A $20/hr rate becomes $30/hr.
Double Time
Not federally required, but common in California (over 12 hrs/day) and union contracts. A $20/hr rate becomes $40/hr.
State Overtime Rules
Some states have more generous overtime rules than federal law:
| State | Special Rules |
|---|---|
| California | 1.5x after 8 hrs/day, 2x after 12 hrs/day |
| Alaska | 1.5x after 8 hrs/day |
| Colorado | 1.5x after 12 hrs/day or 40 hrs/week |
| Nevada | 1.5x after 8 hrs/day (if paid under 1.5x min wage) |
Frequently Asked Questions
Can my employer refuse to pay overtime?
No. If you're a non-exempt employee and work over 40 hours, overtime pay is required by law. Employers cannot waive this, even if you agree to it. Report violations to the Department of Labor.
Is overtime based on hours per day or per week?
Federal law (FLSA) calculates overtime based on hours per week (over 40). However, some states like California also require overtime for hours over 8 per day.
Do holidays count toward overtime hours?
Only hours actually worked count toward overtime. Paid time off, holidays, and sick days don't count, even though you're paid for them. So 32 hours worked + 8 hours holiday pay = no overtime.