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Overtime rules · Updated

Federal overtime rules (FLSA)

Time-and-a-half after 40 hours in a workweek, for covered nonexempt employees.

The Fair Labor Standards Act requires at least one and one-half times the regular rate for hours over 40 in a workweek for covered, nonexempt employees (U.S. DOL Fact Sheet #23). At $20 an hour, a 45-hour week pays 40 × $20 + 5 × $30 = $950.00 gross.

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)

Weekly overtime examples
HoursRegularOvertimeRegular payOT pay (1.5×)Gross
3636:000:00$720.00$0.00$720.00
4040:000:00$800.00$0.00$800.00
4140:001:00$800.00$30.00$830.00
4540:005:00$800.00$150.00$950.00
5040:0010:00$800.00$300.00$1,100.00
6040:0020:00$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.

FAQ

When does overtime start under federal law?

After 40 hours worked in a workweek, for covered nonexempt employees.

How much is federal overtime pay?

At least one and one-half times the regular rate of pay.

What is a workweek?

A fixed and regularly recurring period of 168 hours: seven consecutive 24-hour periods.

Can employers average hours over two weeks?

No. Each workweek stands alone under the FLSA.

Is weekend or holiday work automatically overtime?

Not under the FLSA. It is overtime only when it takes the week past 40 hours, unless another rule or agreement says otherwise.

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