The rules in short
- Overtime pay: at least 1.5 times the regular rate of pay for each hour over 40 in a workweek.
- The workweek: a fixed, recurring period of 168 hours, seven consecutive 24-hour periods. It can start on any day and hour, and need not match the calendar week.
- Each week stands alone: overtime cannot be averaged over two or more weeks.
- Weekends and holidays are not automatically overtime under the FLSA. They count only toward the 40 hours unless a contract, policy or state law says otherwise.
Source: U.S. Department of Labor Wage and Hour Division, Fact Sheet #23: Overtime Pay Requirements of the FLSA. Some employees are exempt, and many states add rules. See California daily overtime for one example.
Pay at $20 an hour (weekly 40 rule)
| Hours | Regular | Overtime | Regular pay | OT pay (1.5×) | Gross |
|---|---|---|---|---|---|
| 36 | 36:00 | 0:00 | $720.00 | $0.00 | $720.00 |
| 40 | 40:00 | 0:00 | $800.00 | $0.00 | $800.00 |
| 41 | 40:00 | 1:00 | $800.00 | $30.00 | $830.00 |
| 45 | 40:00 | 5:00 | $800.00 | $150.00 | $950.00 |
| 50 | 40:00 | 10:00 | $800.00 | $300.00 | $1,100.00 |
| 60 | 40:00 | 20:00 | $800.00 | $600.00 | $1,400.00 |
No averaging across weeks
Work 50 hours one week and 30 the next and the average is 40, but the first week still has 10 overtime hours. At $20 an hour the two weeks pay $1,700.00 (70.00 regular + 10.00 overtime hours), not $2,000.00 for 80 hours at straight time. Use the biweekly timesheet to test each week on its own.
Not legal, tax or payroll advice. Rules depend on your state, job and whether you are exempt. Check with your employer or your state labor department.