Overtime pay in the United States is governed primarily by the Fair Labor Standards Act (FLSA). Understanding the basics helps both employers and employees verify that time cards are calculated correctly.
Federal Overtime: The FLSA Standard
Under the FLSA, non-exempt employees must be paid at least 1.5 times their regular rate for all hours worked over 40 in a single workweek. A workweek is any fixed, regularly recurring period of 168 hours (seven consecutive 24-hour periods). It doesn't need to follow Sunday-Saturday but must be consistent.
Formula: Regular pay = first 40 hours × rate. Overtime pay = (hours over 40) × (rate × 1.5). Example: 45 hours at $18/hr = (40 × $18) + (5 × $27) = $720 + $135 = $855 gross.
State Overtime Rules
Several states have overtime rules more protective than federal. Always apply whichever standard is more favorable to the employee.
| State / Region | Overtime Threshold | Notes |
| California | Daily OT after 8 hrs; double time after 12 hrs/day or 8 hrs on 7th consecutive workday | Most complex overtime rules in the US |
| Alaska | Daily OT after 8 hrs per day | |
| Nevada | Daily OT after 8 hrs (if wage < 1.5× min wage); otherwise weekly 40 hr rule | |
| Colorado | Daily OT after 12 hrs/day or 12 consecutive hours regardless of start/end | |
| All other states | Weekly OT after 40 hrs/week (FLSA standard) | Check state DOL for any additional rules |
Exempt vs. Non-Exempt Employees
Not all employees are covered by FLSA overtime. Exempt employees (executive, administrative, professional roles earning at least $684/week / $35,568/year on a salary basis) aren't entitled to overtime under federal law. Most hourly workers are non-exempt. When in doubt, consult the Department of Labor's FLSA resources or a labor attorney.