How overtime pay works when your week runs long

Overtime pay rules determine how much you earn when you work more than the standard hours in a week. Understanding these rules helps you verify your paycheck, plan your schedule, and know what you are entitled to under federal and state law.

Federal overtime rules under the FLSA

The Fair Labor Standards Act (FLSA) requires most employers to pay non-exempt employees 1.5 times their regular rate for all hours worked beyond 40 in a workweek. The workweek is a fixed, regularly recurring 168-hour period. The overtime requirement is weekly, not daily — working 10 hours Monday and 4 hours the rest of the week does not trigger overtime because total weekly hours are only 14. Some states have daily overtime rules: California requires overtime after 8 hours in a single workday.

Exempt vs. non-exempt status

Not all employees are covered by FLSA overtime. Exempt employees — generally those in executive, administrative, professional, computer-related, or outside sales roles — are not entitled to overtime pay. To qualify as exempt, an employee must meet both a duties test and a salary threshold (currently at least $684/week or $35,568/year under the restored federal rule). Misclassification as exempt when job duties do not qualify is a common wage-and-hour issue worth understanding.

How overtime pay is calculated

For a straightforward hourly worker: regular rate x 1.5 x overtime hours. At $18/hour with 47 hours worked: 40 hours x $18 = $720 regular pay; 7 hours x $27 = $189 overtime pay; total $909. For workers with variable pay — bonuses, commissions, shift differentials — the regular rate must include these additions before overtime is calculated. Non-discretionary bonuses earned during a week with overtime must be factored into the regular rate, and overtime recalculated. This is a common payroll error.

State overtime laws

Several states go beyond the FLSA. California requires daily overtime (1.5x after 8 hours, 2x after 12 hours in a day). Alaska and Nevada also have daily overtime provisions. Some states set a higher salary threshold for exemption than the federal minimum. When state law is more generous than federal, the state law applies.

Frequently asked questions

Can my employer require me to work overtime?
In most US states, yes. Most employment is at-will and employers can require overtime as a condition of employment for non-exempt employees. Some states limit mandatory overtime in healthcare. Union contracts frequently restrict it. Check your employment agreement and state labor laws.

Can my employer give comp time instead of overtime pay?
For private sector employees, generally no. The FLSA requires overtime to be paid in cash, not compensated with future time off. Public sector employers have more flexibility to offer comp time under specific rules. If your private employer is offering comp time for overtime hours, that arrangement may not comply with the FLSA.