Overtime

1.5× regular rate for hours over 40 per workweek.

Definition

Overtime is the premium pay rate — typically 1.5× the regular hourly rate — that the federal Fair Labor Standards Act requires for non-exempt employees who work more than 40 hours in a defined seven-day workweek. Overtime is calculated on a workweek basis, not a pay-period basis, so a biweekly pay period contains two independent overtime calculations. Several states (notably California) require daily overtime in addition to the federal weekly rule. Salaried exempt employees are not entitled to overtime under federal law; the exemption hinges on a salary threshold and a duties test.

Example

A non-exempt warehouse worker who logs 47 hours in a week earns 7 hours at 1.5× their regular rate.

Related terms

• Pay period — The recurring window of time covered by a single paycheck.
• Pay frequency — How often paychecks are issued.
• Payday — The calendar day wages are deposited.
• In arrears — Wages paid after the pay period ends.
• Biweekly — Every other week — 26 paychecks per year.
• Semimonthly — Twice per month on fixed dates — 24 paychecks per year.

See also

• Pay schedule calculator — convert salary to per-paycheck amount
• Pay frequencies primer — weekly, biweekly, semimonthly, monthly
• Frequently asked questions