The short answer
Overtime is tested each workweek on its own. Weeks of 50 and 30 hours have 10 overtime hours, not 0, even though the average is 40. At $20 an hour that is 70 regular hours × $20 + 10 × $30 = $1,700.00 gross
The U.S. Department of Labor says a workweek is a fixed, recurring period of 168 hours (seven consecutive 24-hour periods), and that each workweek stands alone: overtime cannot be averaged over two or more weeks. See Fact Sheet #23. Not legal advice.
FAQ
Can overtime be averaged across a biweekly pay period?
Under the FLSA, no. Each workweek stands alone, so 50 hours one week and 30 the next is 10 overtime hours, not zero.
Does a biweekly pay period change the workweek?
No. The pay period is how often you are paid; the workweek is the 168-hour period used for overtime.