Overtime Pay

How It Works

The FLSA requires employers to pay non-exempt employees "time and a half" (150% of their regular rate) for all hours worked over 40 in a workweek. Whether you're exempt or non-exempt depends on your salary level and job duties. As of 2024, the DOL salary threshold for overtime exemption is $43,888/year ($844/week) — employees earning below this threshold are automatically entitled to overtime regardless of their duties. Employees above the threshold must also meet a "duties test" (executive, administrative, or professional duties) to be classified as exempt. Some states have stricter overtime rules: California requires overtime after 8 hours in a single day, not just 40 hours in a week. Alaska and Nevada also have daily overtime provisions. Overtime significantly affects annual earnings for hourly workers — a $20/hour worker averaging 10 hours of overtime per week earns approximately $57,200 instead of $41,600, a 37% increase. BLS wage data typically reflects straight-time wages and does not include overtime earnings.

Related Terms

• Hourly Wage — Compensation calculated per hour worked — the primary pay structure for approximately 56% of U.S. workers. BLS data converts all wages to both hourly and annual equivalents.
• Base Salary — The fixed amount of money an employee earns before bonuses, benefits, overtime, or other additional compensation — the guaranteed floor of your total pay.