How Overtime Pay Works

Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5 times their regular rate for hours worked over 40 in a workweek. Some states and employers offer double time (2x) for certain hours.

Overtime Pay (1.5x) = Hourly Rate x 1.5 x Overtime Hours Double Time Pay (2x) = Hourly Rate x 2.0 x Double Time Hours Total Weekly Pay = Regular Pay + OT Pay + Double Time Pay Effective Rate = Total Pay / Total Hours

Who Qualifies for Overtime?

  • Non-exempt hourly employees are generally entitled to overtime
  • Salaried employees earning below the FLSA threshold ($58,656/year in 2025) may also qualify
  • Some states like California require overtime after 8 hours in a single day
  • Executive, administrative, and professional exemptions may apply

Frequently Asked Questions

Under the FLSA, overtime must be paid at 1.5 times (time-and-a-half) your regular hourly rate for hours over 40 in a workweek. Some employers or state laws require double time (2x) for holidays or excessive hours.
Non-exempt employees are eligible for overtime. Generally, hourly workers and salaried employees earning below $58,656/year (2025 threshold) qualify. Exempt employees in executive, administrative, or professional roles may not qualify.
Under federal law, overtime is based on weekly hours (over 40). However, California and a few other states require overtime after 8 hours in a single day, and double time after 12 hours.
Overtime is taxed at the same rate as regular income. It may appear to be taxed more heavily because the additional income can push you into a higher withholding bracket for that pay period, but your annual tax rate remains the same.
Yes, if they are classified as non-exempt and earn below the FLSA salary threshold. The 2025 threshold is $58,656/year ($1,128/week). Salaried employees above this threshold in qualifying roles are generally exempt.

FLSA Overtime Rules

The Fair Labor Standards Act requires overtime pay of at least 1.5x the regular rate for non-exempt employees working more than 40 hours in a workweek. State laws may provide additional protections.