The federal rule in one sentence
The Fair Labor Standards Act (FLSA) says covered, nonexempt employees must be paid at least one and one-half times their regular rate of pay for hours worked over 40 in a workweek. That is what people mean by "time and a half."
A workweek is any fixed, recurring 168-hour period, seven days in a row. It does not have to match the calendar week, but it cannot change from week to week to avoid overtime. Each week stands on its own: the Department of Labor says averaging hours over two or more weeks is not allowed.
A worked example
46 hours at $20 an hour
Your regular rate is $20, so your overtime rate is $20 × 1.5 = $30. The first 40 hours pay 40 × $20 = $800. The 6 extra hours pay 6 × $30 = $180. Your gross pay for the week is $980.
Here is the same idea at a few common wages for a 45-hour week:
| Hourly rate | Overtime rate | Pay for 45 hours |
|---|---|---|
| $15.00 | $22.50 | $712.50 |
| $18.00 | $27.00 | $855.00 |
| $22.00 | $33.00 | $1,045.00 |
| $25.00 | $37.50 | $1,187.50 |
| $30.00 | $45.00 | $1,425.00 |
What counts toward your "regular rate"
Your regular rate is not always just your posted hourly wage. The Department of Labor says it includes all pay for employment except certain payments the law excludes. In practice:
- Usually included: shift differentials and nondiscretionary bonuses, such as production or attendance bonuses promised in advance.
- Usually excluded: expense reimbursements, discretionary bonuses, gifts, true premium pay for weekend or holiday work, and pay for time not worked, such as vacation, holidays or sick days.
When a weekly bonus is included, the regular rate is your total pay for the week, before overtime premiums, divided by the hours you worked. Overtime then adds half of that rate for each hour over 40.
Example with a $46 bonus
You work 46 hours at $20 and earn a $46 attendance bonus. Straight-time pay is 46 × $20 + $46 = $966. Your regular rate is $966 ÷ 46 = $21. The overtime premium is 6 × ($21 × 0.5) = $63, so total pay is $1,029, not $1,026.
Things federal law does not require
The FLSA does not require extra pay for weekends, holidays or night work as such, and it has no daily overtime rule. Under federal law alone, four 10-hour days add up to 40 hours and no overtime. Employers can choose to pay more, and many do through contracts or company policy.
Not every worker is covered. Some salaried workers in executive, administrative and professional roles are exempt from overtime if they meet both a duties test and a minimum salary test. Being paid a salary does not by itself make someone exempt. The Department of Labor's Wage and Hour Division explains the current tests.
State rules can pay more: California's daily overtime
Where state and federal law both apply, you get whichever rule is more generous. California is the best-known example. Its labor department sets these general rules:
- Over 8 hours in a workday, up to 12: 1.5 times the regular rate.
- Over 12 hours in a workday: double the regular rate.
- Over 40 hours in a workweek: 1.5 times the regular rate.
- On the seventh consecutive workday in a workweek: 1.5 times for the first 8 hours, double after that.
Four 10-hour days in California
At $20 an hour, the federal rule pays 40 × $20 = $800. Under California's daily rule, 2 hours each day are overtime, so you get 32 regular hours ($640) plus 8 overtime hours at $30 ($240), or $880, unless a valid alternative workweek schedule applies.
Several other states have their own overtime rules too. Check your state labor department for the rules where you work.