Wage and hour law
What is overtime?
Also called: OT, overtime pay
Overtime is the extra pay a non-exempt employee earns for hours past 40 in a workweek, at no less than 1.5 times their regular rate under federal law.
The federal rule is per workweek, not per pay period. On a biweekly payroll you total each of the two workweeks on its own, so 48 hours one week and 32 the next is 8 hours of overtime, not a tidy 80 straight-time hours.
Overtime is owed on hours actually worked. Paid time off, holidays, and sick hours generally don't count toward the 40 unless your own policy says they do, which is a common source of overpayment when a policy was never written down.
Some states go further than the federal floor. California pays daily overtime past 8 hours and double time past 12, and a handful of other states have their own daily rules, so the correct answer depends on where the employee works.
Example
At $20 an hour with 46 hours worked: 40 x $20 = $800, plus 6 x $30 = $180, for $980 gross.
Source: 29 U.S.C. 207 (FLSA overtime)
Handle this automatically
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Related terms
Workweek
A workweek is a fixed, recurring period of 168 hours, seven consecutive 24-hour days, that you set in advance and use to calculate overtime.
Regular rate of pay
The regular rate is the hourly figure overtime is based on, and it is usually more than the base wage because it blends in nondiscretionary bonuses and shift differentials.
Time and a half
Time and a half means 1.5 times the regular rate, the federal minimum premium for overtime hours.
Exempt vs non-exempt
Non-exempt employees must get minimum wage and overtime. Exempt employees are excluded from those rules, but only if they meet strict salary and duties tests.
General information for US employers, not legal advice. Wage and hour rules change and vary by state, so confirm specifics with your state labor agency or counsel.