Everything you need to know about overtime pay requirements under federal and state law.
Overtime = 1.5x pay after 40 hours/week (federal)
Some states require daily overtime (CA, AK, CO, NV)
Not everyone qualifies - exempt employees don't get OT
Holiday pay is NOT required by law
Overtime pay is additional compensation that employers must pay to eligible employees who work more than a certain number of hours. Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay of at least 1.5 times their regular rate of pay for hours worked over 40 in a workweek.
This means if you earn $20/hour, your overtime rate would be $30/hour. For every hour you work beyond 40 in a week, you're entitled to that higher rate.
| Regular hourly rate | $20.00 |
| Hours worked this week | 50 hours |
| Regular hours (first 40) | 40 hrs × $20.00 = $800.00 |
| Overtime hours (10 hrs) | 10 hrs × $30.00 = $300.00 |
| Total gross pay | $1,100.00 |
A key concept in overtime law is the "workweek." A workweek is a fixed, recurring period of 168 hours (seven consecutive 24-hour periods). Your employer can define any 7-day period as the workweek - it doesn't have to be Sunday through Saturday.
Important: Overtime is calculated on a workweek basis. Employers cannot average hours over multiple weeks. Even if you work 30 hours one week and 50 the next, you're still owed overtime for the 10 hours over 40 in that second week.
Not all employees are entitled to overtime. The FLSA divides workers into two categories:
Most hourly workers and many salaried workers are non-exempt. They must receive overtime pay for hours over 40/week.
Certain employees meeting salary AND duties tests are exempt from overtime requirements.
To be exempt from overtime, an employee must meet both tests:
1
Salary Test
Must be paid at least $684/week ($35,568/year) on a salary basis
2
Duties Test
Must perform exempt job duties (executive, administrative, or professional)
Simply being paid a salary does not make an employee exempt. The job duties must also qualify under one of the exempt categories.
While federal law sets the minimum standard, some states have more generous overtime rules. Employees are entitled to whichever law provides greater protection.
California
8 hrs/day (1.5x)
12 hrs/day (2x)
Alaska
8 hrs/day (1.5x)
Nevada
8 hrs/day (1.5x)*
*If < 1.5x min wage
Colorado
12 hrs/day (1.5x)
Disclaimer: This guide is for general informational purposes only and should not be considered legal advice. Overtime laws can be complex and may have exceptions. For specific situations, consult with an employment attorney or your state labor department.