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Financial glossary

Overtime Pay (FLSA)

In plain English

At least 1.5× the regular hourly rate owed to non-exempt US employees for hours worked beyond 40 in a workweek.

Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5× their regular hourly rate for every hour worked beyond 40 in a single workweek. A handful of states go further — California requires daily overtime past 8 hours and double time past 12.

The “regular rate” used for the 1.5× multiplier is often larger than the base wage: it generally must include non-discretionary bonuses and shift differentials, averaged over the week. Employers who calculate overtime off base pay alone are underpaying — one of the most common wage-and-hour violations reported to the Department of Labor.

Whether overtime applies at all depends on exempt employee status, not job title. Price your own hours with the overtime pay calculator.

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