Overtime Pay
Compensation at 1.5 times the regular hourly rate for hours worked beyond 40 in a workweek, required by the Fair Labor Standards Act for non-exempt employees.
Overtime Pay is a term from U.S. wage and occupational data — typically a concept from the BLS Occupational Employment and Wage Statistics survey, the DOL prevailing-wage system, or related employment statistics. The definition here is the practical worker-facing meaning. Understanding Overtime Pay is part of reading wage data defensibly. BLS and DOL conventions can be subtle — survey methodology, reporting thresholds, geographic definitions, and percentile calculations all shape what the headline numbers actually mean.
Each role-and-city page on SalaryTruth surfaces the Overtime Pay-relevant values for that specific combination, so the general definition here translates into concrete numbers on the per-role-and-city pages.
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.
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About This Definition
This definition is part of the SalaryTruth Salary & Career Glossary, 25 terms explaining compensation, salary data, and career development. All salary data from the Bureau of Labor Statistics OEWS survey.