What Is Overtime Pay?
Overtime pay is extra compensation that employers are legally required to provide when employees work beyond standard hours. In the United States, the Fair Labor Standards Act (FLSA) — a federal law enacted in 1938 — establishes the fundamental overtime rules that apply across all 50 states.
The core principle is simple: work more than 40 hours in a week, and you deserve to be paid more per hour for that extra time. The standard premium is 1.5× your regular rate, commonly known as "time and a half."
Who Qualifies for Overtime?
Most hourly employees automatically qualify for overtime. The key categories include:
Hourly Workers
Almost all hourly employees are entitled to overtime regardless of industry.
Part-Time Workers
If a part-timer exceeds 40 hours in a week, they qualify for overtime.
Non-Exempt Salaried
Salaried workers below the exemption threshold also qualify.
Temporary Workers
Temp and contract workers are covered under the same FLSA rules.
Exempt vs Non-Exempt Employees
The critical distinction for overtime eligibility is whether an employee is classified as exempt or non-exempt under the FLSA.
| Criteria | Non-Exempt | Exempt |
|---|---|---|
| Overtime eligible | Yes | No |
| Salary threshold | Below $684/week | $684+/week |
| Job duties test | Does not meet exemption | Executive, Admin, Professional |
| Common roles | Retail, food service, labor | Managers, lawyers, engineers |
How Overtime Pay Is Calculated
The standard calculation follows three steps. For a detailed walkthrough with examples, see our complete calculation guide or the formula reference.
1. Regular Pay = 40 hrs × Hourly Rate2. OT Pay = OT Hours × Rate × 1.53. Total = Regular Pay + OT PayCalculate Your Overtime Pay Now
Use our free tool to instantly compute your regular pay, overtime, and total earnings.
State-Specific Rules
Federal rules are the floor, not the ceiling. Several states provide additional overtime protections:
Your Rights as an Employee
Under federal and state law, you have important rights regarding overtime compensation:
- You cannot waive your right to overtime pay, even if you sign an agreement
- Your employer cannot average hours across two or more workweeks
- Overtime must be paid in your regular paycheck — not as comp time (for private sector)
- You have the right to file a complaint with the Department of Labor without retaliation
- You can recover up to 3 years of unpaid overtime through legal action
If you believe your overtime rights are being violated, contact the U.S. Department of Labor Wage and Hour Division at 1-866-487-9243 or visit dol.gov/whd.