What is the legal definition of overtime under federal law?

Under Section 7(a) of the Fair Labor Standards Act (FLSA), overtime is defined as any hours worked by a covered non-exempt employee in excess of 40 hours in a fixed, regularly recurring workweek of 168 consecutive hours (7 consecutive 24-hour periods). Lenders and employers must compensate these hours at 1.5× the employee's regular hourly wage.

Can an employer average hours over two weeks for overtime?

No. Federal law prohibits employers from averaging hours over a bi-weekly pay period. For example, if you work 50 hours in week 1 and 30 hours in week 2 (80 hours total), your employer cannot claim zero overtime—they must pay you 10 hours of overtime for week 1.

Which states require daily overtime pay?

A few states enforce daily overtime thresholds in addition to the federal 40-hour weekly rule. California requires 1.5× pay after 8 hours in a day and double-time (2.0×) after 12 hours in a day, as well as time-and-a-half on the 7th consecutive day of work. Alaska and Nevada also enforce daily overtime thresholds for certain qualifying workers.

What is double-time pay and when is it mandatory?

Double-time pay is compensation at twice (2.0×) the employee's standard hourly rate. Federal law does not mandate double-time pay for weekends, holidays, or long hours. It is only legally mandatory under specific state statutes (such as California after 12 hours in a workday or after 8 hours on the 7th consecutive workday) or under private collective bargaining union agreements.

Are salaried employees eligible for overtime pay in 2026?

Salaried employees are only exempt from overtime if they earn above the enforced federal statutory salary threshold of $684 per week ($35,568 annually under the 2019 Department of Labor rule; Highly Compensated Employee threshold is $107,432) AND their actual primary job duties satisfy the "duties test" for executive, administrative, or professional roles. (The higher 2024-rule levels were vacated by a federal court in November 2024 and are not in effect; exemption also requires meeting the duties test, and several states enforce higher salary thresholds.) Salaried workers earning below $684 per week ($35,568 per year) are legally entitled to overtime pay regardless of job title.

How is overtime taxed on my paycheck?

Overtime pay is taxed as ordinary income at the exact same statutory federal and state tax rates as your regular wages. However, because a larger paycheck in a single pay period may push your earnings into a higher annualized withholding bracket, your employer's payroll software may withhold federal taxes at a higher temporary rate. Any excess withholding is refunded when you file your annual tax return.

2026 Statutory Rates Primary Source Verified Always 100% Free

Overtime Pay Calculator (FLSA 1.5×) (2026)

Calculate statutory time-and-a-half (1.5×) and double-time (2.0×) earnings. See exact regular, overtime, and total weekly gross pay under federal FLSA regulations.

Quick Answer: Under the federal Fair Labor Standards Act (FLSA, 29 U.S.C. § 207), covered non-exempt employees must receive overtime pay for all hours worked over 40 in a workweek at a rate not less than one and one-half times (1.5×) their regular rate of pay. Total weekly gross pay equals (Regular Hours × Base Rate) + (Overtime Hours × Base Rate × 1.5) + (Double-Time Hours × Base Rate × 2.0). For an employee earning $20.00 per hour working 40 regular hours and 10 overtime hours in a workweek, their regular pay is $800.00 (40 × $20) and overtime pay is $300.00 (10 × $30.00 overtime rate), yielding a total gross weekly paycheck of exactly $1,100.00 ($57,200.00 annualized over 52 workweeks).

Hourly Wage & Hours Worked

Regular Hourly Wage Standard base pay per hour

Regular Hours Worked / Week FLSA standard threshold is 40 hrs

Hrs

Overtime Hours (1.5× Rate) Time-and-a-half hours worked

Hrs

Double-Time Hours (2.0× Rate) Holidays or CA >12h daily rules

Hrs

Total Gross Weekly Pay

$1,100.00

For 50 total hours worked

Regular Pay (40 hrs @ $20.00) $800.00

Overtime Pay (10 hrs @ $30.00) $300.00

Double-Time Pay $0.00

Bi-Weekly Paycheck Equivalent $2,200.00

Annualized Gross Earnings (52 wks) $57,200.00

Want to see your take-home pay after taxes? Calculate Take-Home Tax on This Pay →

Calculated under Fair Labor Standards Act (FLSA) statutory guidelines. Specific state overtime rules (e.g. daily overtime in California) and union contracts may mandate higher rates.

Overtime Wage Multiplier Summary

Pay Type	Hourly Rate	Hours Worked	Weekly Gross	Annualized Equivalent

Primary Source Verified Last reviewed: October 2026

Calculation Methodology: Overtime Pay Calculator (FLSA 1.5×) (2026)

Mathematical Formula

Total Gross Pay = (Regular Hours × Rate) + (OT Hours × Rate × 1.5) + (Double Time Hours × Rate × 2.0)

Regular Rate: Standard hourly base pay (minimum $7.25/hr federal, or applicable higher state/city minimum wage).
Overtime Multiplier: 1.5× the regular rate for hours worked in excess of 40 in a 7-consecutive-day workweek.
Double-Time Multiplier: 2.0× the regular rate for specialized union contracts, holiday shifts, or statutory state daily overtime rules (e.g., California after 12 daily hours).
Annualized Gross: Total Weekly Gross Pay × 52 workweeks.

Verified Worked Example (Benchmark)

Benchmark Parameters: Base Hourly Rate = $20.00/hr · Regular Hours Worked = 40.0 · Overtime Hours Worked = 10.0 · Double-Time Hours Worked = 0.0.

Regular Hourly Rate: $20.00/hour.
Statutory Overtime Rate (1.5×): $20.00 × 1.5 = $30.00/hour.
Regular Earnings: 40.0 hours × $20.00 = $800.00.
Overtime Earnings: 10.0 hours × $30.00 = $300.00.
Total Gross Weekly Pay: $800.00 + $300.00 = $1,100.00.
Bi-Weekly Paycheck Equivalent (2 weeks): $1,100.00 × 2 = $2,200.00 gross.
Annualized Earnings (52 workweeks): $1,100.00 × 52 = $57,200.00 gross/year.

Statutory State Callout: While federal FLSA law mandates overtime strictly after 40 hours in a single workweek, several states enforce stricter daily overtime laws. In California, non-exempt workers receive 1.5× after 8 hours in a workday and 2.0× after 12 hours in a single workday, regardless of total weekly hours.

Primary Statutory Sources & Authorities

U.S. Department of Labor (Wage and Hour Division) — Federal Fair Labor Standards Act (FLSA, 29 U.S.C. § 207) statutory time-and-a-half overtime guidelines and fact sheets.
Department of Labor Overtime Final Rule (29 CFR Part 541) — Statutory salary thresholds for executive, administrative, and professional overtime exemptions ($684/week, $35,568/year under enforced 2019 DOL regulations; HCE $107,432; 2024 rule vacated).
California Department of Industrial Relations (DIR) — State-specific daily overtime standards (over 8 hours/day at 1.5×, over 12 hours/day at 2.0×).

Frequently Asked Questions

Primary source guidance on rules, formulas, and regulations.

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