How Overtime Pay Works
Federal law (FLSA) requires employers to pay at least 1.5x your regular rate for hours worked over 40 per week. This is commonly called "time and a half." Some employers offer double time (2x) for holidays or special circumstances, though this is not required by federal law.
Overtime pay is calculated on a weekly basis, not daily. This means if you work 10 hours on Monday but only 6 hours on Tuesday, you do not get overtime for Monday unless your total hours for the week exceed 40.
Example: $20/hr, 10 Overtime Hours at 1.5x
- Regular rate: $20/hour
- Overtime rate: $20 x 1.5 = $30/hour
- Regular weekly pay: $20 x 40 = $800
- Overtime weekly pay: $30 x 10 = $300
- Total weekly pay: $800 + $300 = $1,100
- Annual total: $1,100 x 52 = $57,200
Overtime Rate Comparison Table
| Base Rate | 1.5x OT Rate | 2x OT Rate | 10hrs OT at 1.5x (weekly) |
|---|---|---|---|
| $15/hr | $22.50 | $30.00 | $225 |
| $20/hr | $30.00 | $40.00 | $300 |
| $25/hr | $37.50 | $50.00 | $375 |
| $30/hr | $45.00 | $60.00 | $450 |
| $35/hr | $52.50 | $70.00 | $525 |
| $40/hr | $60.00 | $80.00 | $600 |
Who Qualifies for Overtime?
Most hourly workers in the United States qualify for overtime pay under the Fair Labor Standards Act (FLSA). However, certain categories of workers may be exempt:
- Non-exempt workers (most hourly employees): Must receive overtime pay for hours over 40/week.
- Exempt workers (certain salaried employees): Those earning over $684/week ($35,568/year) in executive, administrative, or professional roles may be exempt.
- Independent contractors: Not covered by FLSA overtime provisions.
State Overtime Laws
Some states have additional overtime protections beyond federal law:
- California: Daily overtime after 8 hours in a single day. Double time after 12 hours.
- Nevada: Daily overtime after 8 hours for employees earning less than 1.5x minimum wage.
- Colorado: Daily overtime after 12 hours in a day or 12 hours in a shift.
How to Maximize Your Overtime Earnings
If your employer offers overtime, here are strategies to maximize your earnings:
- Volunteer for high-demand shifts — weekends, holidays, and overnight shifts often come with premium rates.
- Track your hours carefully — use a time-tracking app to ensure you are paid for all overtime hours.
- Know your rights — your employer cannot force you to waive overtime pay.
- Plan your budget — overtime is not guaranteed, so do not rely on it for essential expenses.
Use our Overtime Calculator above to see how overtime affects your total earnings, or try our Pay Raise Calculator to plan your next salary increase.