What Is Overtime Pay? Definition and Simple Example
Last Updated: 2026-07-21
Overtime pay is the extra money owed when a covered non-exempt worker goes past 40 hours in a workweek. Under federal rules, those extra hours are paid at least at 1.5× the regular rate—often called time and a half.
What overtime pay means
Overtime pay is premium pay for hours worked beyond the normal workweek limit. Under the Fair Labor Standards Act (FLSA), that limit is 40 hours in a fixed 168-hour workweek. Hours above 40 generally earn at least time and a half—1.5 times the employee's regular rate of pay.
The rule is meant to compensate longer weeks and discourage routine overwork. Weekend or holiday work is not automatically overtime unless those hours also push the weekly total over 40, or a stricter state rule applies.
One simple 1.5× example
Here is the shortest federal-style example. It shows the idea only—full step-by-step calculations live on the how-to guide.
Formula
Overtime pay = overtime hours × (regular rate × 1.5)
Example: You earn $20 an hour and work 48 hours in one workweek.
- Regular hours: 40 × $20 = $800
- Overtime hours: 8
- Overtime rate: $20 × 1.5 = $30
- Overtime pay: 8 × $30 = $240
- Total pay: $800 + $240 = $1,040
Bonuses, commissions, and some other pay can change the regular rate. Use the how-to guide when the paycheck is more than a flat hourly wage.
Who may qualify at a high level
Most covered hourly workers are non-exempt and earn overtime after 40 hours. A worker is usually exempt from overtime only if they meet every part of a federal exemption test—not just a job title or a salary label.
Current federal salary threshold
$684 per week ($35,568 per year)
For the main white-collar exemptions, the U.S. Department of Labor currently lists a standard salary level of $684 per week, equal to $35,568 a year. Earn less than that and you are generally non-exempt, even if your title sounds managerial. Salary alone is never enough—duties must also qualify.
A 2024 attempt to raise that federal threshold was vacated in court, so the higher proposed amounts are not current law.
Some states add stricter overtime rules on top of the federal floor. Workers get whichever applicable rule is more protective.
Read the full FLSA exemption tests and duties categoriesWhat to do next
Pick the next page that matches your task. This definition page stops at the concept, one example, and high-level eligibility.
Calculate overtime pay
Enter your rate and hours for an instant federal-style estimate.
Learn the full calculation steps
Walk through the formula, regular-rate rules, and worked examples.
Check federal FLSA rules
See exemption tests, the $684 threshold, and how regular rate works under federal law.
California daily overtime and double time
Use the California tool when daily OT or double time may apply.
Frequently Asked Questions
It is extra pay for hours over the normal weekly limit. Under federal rules, that usually means at least 1.5× your regular rate for hours over 40 in a workweek.
No. Federal overtime looks at total hours in the workweek. Saturday or Sunday hours count toward that total, but they are not overtime by themselves unless the week goes over 40 hours or a state rule says otherwise.
No. Salary is only one part of exemption. Under current DOL guidance, many white-collar exemptions also require at least $684 per week and qualifying job duties. Lower-paid salaried workers can still be owed overtime.
Use the how-to guide for calculation steps, the FLSA guide for federal eligibility details, the California calculator for California daily and double-time rules, and the homepage calculator to estimate pay.