US overtime pay explained
By Dexaloop · Updated 27 October 2026 · Checked against the sources listed below
Under the federal Fair Labor Standards Act (FLSA), a non-exempt employee must be paid at least one and a half times their regular rate for every hour worked over 40 in a workweek. There is no federal overtime for long days, weekends or holidays as such: the only trigger is the weekly total. Some states, such as California, add daily overtime on top. This guide explains each piece and shows the sums. It is general information on US rules, checked on 27 October 2026.
The federal rule in one line
The Department of Labor (DOL) puts it this way: covered employees, unless exempt, must get overtime for hours over 40 in a workweek "at a rate not less than time and one-half their regular rates of pay." Three terms in that rule do most of the work: workweek, exempt and regular rate.
What a workweek is
The DOL defines a workweek as "a fixed and regularly recurring period of 168 hours," which is seven 24-hour days in a row. It does not have to run Sunday to Saturday. Your employer picks the start day and time, and it then stays fixed.
Two points follow from this:
- Each week is counted alone. The DOL states that averaging hours over two or more weeks is not allowed. If you work 30 hours one week and 50 the next, you are owed 10 hours of overtime, even though the two weeks average 40.
- Pay period is not the same as workweek. A biweekly paycheck still has to be split into its two workweeks for the overtime check.
Exempt or non-exempt
Overtime applies only to non-exempt employees. Most hourly workers are non-exempt. The best known exemptions are for executive, administrative and professional staff, plus some computer and outside sales roles. For most of these, two things must both be true:
- Salary test. On 14 May 2026 the DOL announced it had restored the 2019 rules, which require most exempt executive, administrative and professional employees to be paid a salary of at least $684 a week. The 2024 rule that would have raised this figure was vacated by a court.
- Duties test. The person's main duty must fit the exemption, for example managing a department and directing at least two full-time employees.
Fact Sheet 17A is clear that "Job titles do not determine exempt status." A worker called "assistant manager" who mostly runs a till may still be owed overtime.
How the regular rate is worked out
The overtime premium is based on the regular rate, not just the posted hourly wage. DOL Fact Sheet 56A gives the formula: total pay for the workweek (less some excluded items) divided by total hours worked in that week.
What goes in: in the DOL's words, "all remuneration for employment," so hourly pay, salary and most other pay for the work, including nondiscretionary bonuses (ones you were promised for meeting a target). What stays out, according to the DOL: true gifts, discretionary bonuses, pay for vacation, holidays or sick days not worked, and expense repayments.
Worked example 1: a simple hourly week
Maria earns $18 an hour and works 46 hours in one workweek.
| Part | Sum | Amount |
|---|---|---|
| Straight time | 40 × $18 | $720.00 |
| Overtime rate | $18 × 1.5 | $27.00 an hour |
| Overtime pay | 6 × $27 | $162.00 |
| Total | $882.00 |
Worked example 2: a week with a production bonus
Dev earns $16 an hour, works 50 hours, and earns a $50 bonus promised for meeting that week's output target.
- Pay for all hours at the straight rate: 50 × $16 = $800.
- Add the bonus: $800 + $50 = $850.
- Regular rate: $850 ÷ 50 hours = $17.00.
- Overtime premium owed on top: half the regular rate for each overtime hour, 10 × $8.50 = $85.
- Total for the week: $850 + $85 = $935.00.
The "half-time on top" step is the method the DOL uses in Fact Sheet 23. Its example is a $405 salary for a 45-hour week: the regular rate is $405 ÷ 45 = $9.00, and the extra overtime owed is half of $9 for 5 hours, or $22.50. Straight pay already covered every hour once, so only the extra half is added. If the bonus had been left out, Dev's overtime would have been $80 ($8 × 10), so leaving it out shortchanges him $5.
State overtime rules
States can set their own overtime laws. When a state rule and the federal rule both apply, the DOL says the employee gets overtime by "the higher standard."
California is the best known example. Its Labor Commissioner lists these rules for most non-exempt workers:
- One and a half times the regular rate for hours over 8 in a workday, up to and including 12, and for hours over 40 in a workweek.
- One and a half times for the first 8 hours on the seventh day of work in a row in a workweek.
- Double the regular rate for hours over 12 in a workday, and for hours over 8 on that seventh day.
So a California employee who works one 13-hour day in a week of 32 hours total is owed overtime, even though the week is under 40. The first 8 hours are straight time, hours 9 to 12 are at time and a half, and hour 13 is at double time. Under the federal rule alone, none of that week would be overtime.
Other states have their own rules and some differ only in detail. If you work outside California, check your state labor department's own page.
Common mistakes
- Expecting weekend or holiday premiums by law. Federally, a Sunday hour is paid like any other hour unless it takes the week past 40. Any extra weekend rate comes from your contract or employer policy.
- Averaging across a pay period. Two 40-hour averages do not cancel a 50-hour week.
- Assuming "salaried" means "exempt." Both the salary test and the duties test must be met.
- Forgetting bonuses and differentials. Leaving a promised bonus out of the regular rate makes the overtime figure too low.
- Using the wrong rule for the state. In a state with daily overtime, a weekly-only sum will miss hours.
Once your hours for each day are clear, the sum itself is simple. The calculator below splits straight time and overtime for you, with the California daily rules as an option.
Work out your overtime pay: tools.dexaloop.com/overtime-calculator/. Free, no sign-up, and it runs on your device.
Questions
Is overtime paid for working on a weekend or a holiday?
Not under federal law by itself. The FLSA does not require extra pay for Saturdays, Sundays or holidays. Those hours count toward the 40, so they earn overtime only if your total for the workweek goes past 40. Your employer or contract may pay more.
Can my employer average two weeks to avoid overtime?
No. The Department of Labor says averaging of hours over two or more weeks is not permitted. Each workweek is checked on its own, even if you are paid every two weeks.
Does a salaried worker get overtime?
Often, yes. Being paid a salary does not make you exempt. Most white-collar exemptions need a salary of at least $684 a week and duties that meet a test. Job titles do not decide it.
Is there a limit on how many hours I can be asked to work?
Federal law sets no limit for workers aged 16 and over. It only requires that hours over 40 in a workweek are paid at the overtime rate, unless you are exempt.
Does my bonus change my overtime rate?
It can. A nondiscretionary bonus, such as one promised for hitting a target, is part of the regular rate. That raises the rate overtime is based on. A truly discretionary bonus or a holiday gift is left out.
Sources
- US Department of Labor, Wage and Hour Division: Overtime pay
- US Department of Labor: Fact Sheet 23, Overtime pay requirements of the FLSA
- US Department of Labor: Fact Sheet 56A, Overview of the regular rate of pay
- US Department of Labor: Fact Sheet 17A, Exemption for executive, administrative, professional, computer and outside sales employees
- US Department of Labor news release, 14 May 2026: technical amendment restoring the exemption regulations
- US Department of Labor elaws FAQ: state and federal overtime laws
- California Labor Commissioner (DLSE): Overtime FAQ
This guide is general information, not legal, tax or financial advice. Rules change; check the official source for your own case. Found a mistake? Email support@dexaloop.com.