Overtime Calculator

Understanding Overtime Pay

Under the Fair Labor Standards Act (FLSA) in the United States, non-exempt employees are entitled to overtime pay at a rate of at least one and one-half times (1.5x) their regular rate of pay for all hours worked over 40 in a workweek. This federal law applies to most hourly workers and some salaried employees who earn below the exemption threshold.

Double time (2.0x) pay is not required by federal law but is mandated in some states, such as California, where employees earn double their regular rate for hours worked beyond 12 in a single day or beyond 8 hours on the seventh consecutive workday. Many employers also offer double time voluntarily for holiday work or extreme overtime situations.

The distinction between exempt and non-exempt employees is critical. Exempt employees (typically salaried workers in executive, administrative, or professional roles earning above a certain threshold) are not entitled to overtime pay under the FLSA. Non-exempt employees, regardless of whether they are paid hourly or on a salary basis, must receive overtime compensation for hours worked beyond the standard 40-hour workweek.