Overtime pay, in plain English.
The federal Fair Labor Standards Act sets a floor: 1.5× pay for any hour past forty in a workweek. Some states raise that floor.
01
Overtime = 1.5× rate for hours over 40 in a workweek (federal).
02
Some states require daily overtime: CA, AK, CO, NV.
03
Exempt employees do not get overtime — but salaried ≠ exempt.
04
Holiday pay is NOT required by federal law.
What overtime pay actually is
Overtime is additional compensation that employers must pay to non-exempt employees who work more than a certain number of hours. Under the federal Fair Labor Standards Act (FLSA), every non-exempt employee earns at least 1.5× their regular rate for hours worked beyond 40 in a single workweek.
If you earn $20 / hour, your overtime rate is $30 / hour. Every hour past 40 in that week is owed at the higher rate.
A quick example
| Regular hourly rate | $20.00 |
| Hours worked this week | 50 hrs |
| Regular pay (40 hrs × $20) | $800.00 |
| Overtime pay (10 hrs × $30) | $300.00 |
| Total gross pay | $1,100.00 |
The workweek rule
A “workweek” is any fixed, recurring 168-hour period (seven consecutive 24-hour days). Your employer can define any 7-day window — it doesn't have to be Sunday through Saturday.
Overtime is calculated on a per-workweek basis. Employers cannot average hours across weeks. If you worked 30 hours one week and 50 the next, you are still owed overtime for those 10 hours over 40 in week two.
Who qualifies for overtime?
The FLSA divides workers into two camps:
Entitled to overtime
Most hourly workers and many salaried workers. They must receive overtime pay for hours over 40 per week.
Not entitled to overtime
Employees meeting both the salary test and a duties test for an exemption category — executive, administrative, professional, or outside sales.
The exempt employee test
To be exempt, an employee must meet both tests, not just one:
01
Salary test
Must be paid at least $684 / week ($35,568 / year) on a salary basis.
02
Duties test
Must perform exempt job duties — executive, administrative, professional, or outside sales.
Being paid a salary does not, on its own, make an employee exempt. The duties have to qualify too.
State overtime laws
Federal law sets the minimum. Some states do more. Employees are entitled to whichever law provides greater protection.
California
8 hrs / day → 1.5×
12 hrs / day → 2×
7th day rule
Alaska
8 hrs / day → 1.5×
Nevada
8 hrs / day → 1.5×*
*if earning <1.5× min wage
Colorado
12 hrs / day → 1.5×
Run the math
Apply this to a real timesheet, in seconds.
For general education only. Overtime law has exceptions. For a specific situation, contact your state labor department or an employment attorney.