How Overtime Pay Works: Time and a Half Explained
Most hourly employees in the U.S. earn at least one and a half times their regular rate for every hour over 40 in a workweek. Here is how that rule works and where it gets more detailed.
The federal rule
The Fair Labor Standards Act (FLSA) requires overtime pay of at least 1.5 times the regular rate for hours worked over 40 in a workweek. It applies to "non-exempt" employees, which includes most hourly workers.
The calculation is simple: overtime rate = regular rate × 1.5. At $18 an hour, overtime pays $27 an hour. A 46-hour week pays 40 × $18 + 6 × $27 = $720 + $162 = $882.
What counts as a workweek
A workweek is a fixed, recurring period of 168 hours (seven consecutive 24-hour days) set by the employer. It does not have to start on Monday. Each workweek stands alone: hours cannot be averaged across two weeks. Working 50 hours one week and 30 the next still earns 10 hours of overtime in the first week, even though the two-week total is 80.
Who is not covered
Some employees are exempt from overtime. The most common exemptions are for executive, administrative and professional employees who meet a duties test and earn a salary of at least $684 a week. Other exemptions cover certain outside sales roles, some computer professionals, and specific industries.
Job titles do not decide exemption; duties and pay do. A "manager" who spends most of the day doing the same work as hourly staff may still be owed overtime.
States can require more
The FLSA sets a floor. Some states add daily overtime. California, for example, requires time and a half after 8 hours in a workday and double time after 12 hours, along with rules for the seventh consecutive workday. A few other states have their own daily or weekly rules. When federal and state law differ, the employee gets whichever is more generous.
The "regular rate" is not always the base wage
For overtime, the regular rate includes most forms of pay for the work, such as shift differentials and many non-discretionary bonuses (production bonuses, attendance bonuses). It excludes things like discretionary gifts, expense reimbursements and pay for time not worked, such as vacation. If you earn regular bonuses, your overtime rate may be higher than 1.5 × your hourly wage.
Double time
Federal law does not require double time. It comes from state law (such as California's 12-hour rule), union contracts or employer policy, often for holidays or long shifts. Double time is 2 × the regular rate.
Working out a week
- Total your hours for the workweek.
- Regular pay = rate × the first 40 hours.
- Overtime pay = rate × 1.5 × hours over 40.
- Add the two.
The overtime calculator does this for any rate, and every hourly rate page shows the overtime figure and 45- and 50-hour weeks.
Overtime over a year
Regular overtime adds up. At $22 an hour, five overtime hours every week adds $22 × 1.5 × 5 × 52 = $8,580 to a $45,760 base, or about 19%. If overtime is irregular, average it over a few months before counting on it in a budget.
If you think you are owed overtime
Keep your own record of the hours you work. The Department of Labor's Wage and Hour Division takes complaints and does not charge for it; many states have their own labor departments as well. This page is general information, not legal advice.
Last reviewed October 2, 2026. General information, not financial, tax or legal advice.