Overtime Pay FAQ

Under the federal Fair Labor Standards Act (FLSA), overtime applies to any hours worked beyond 40 in a single workweek for non-exempt employees. The minimum overtime rate is 1.5× the employee's regular rate of pay. Some states have stricter rules — California, for example, requires overtime for hours beyond 8 in a single workday, regardless of the weekly total. Overtime does not automatically apply to all workers; exempt employees (typically salaried workers above a certain income threshold in executive, administrative, or professional roles) are not entitled to FLSA overtime.

Time-and-a-half (1.5×) is the federal minimum, but it is not always the actual rate. Many employers, union contracts, or state laws require higher overtime rates. Double-time (2×) is common in California for hours beyond 12 in a single day and for all hours on the seventh consecutive day of work. Some employers also voluntarily offer double-time for holidays or Sundays.

It depends on whether the employee is classified as exempt or non-exempt under the FLSA. Salaried employees earning above the federal salary threshold (currently $684/week) who work in executive, administrative, or professional capacities are typically exempt and do not receive overtime. However, salaried non-exempt employees — those earning below the threshold or in certain job categories — are still entitled to overtime for hours over 40.

For a standard hourly worker, overtime is calculated in three steps: (1) multiply your hourly rate by 1.5 to get your overtime rate, (2) multiply that overtime rate by the number of overtime hours worked, and (3) add your overtime pay to your regular pay for the total. Example: At $18/hr, your overtime rate is $27/hr. If you work 43 hours, your regular pay is $720 and your overtime pay is $81, for a total of $801.

Overtime pay is taxed as ordinary income — there is no special tax rate for it. However, a higher gross pay in a given period may result in higher withholding for that paycheck. Your actual annual tax liability is based on total annual income, not individual pay periods. If you're working consistent overtime, the freelance income calculator can help you estimate how extra income affects your overall earnings picture.

Double-time is 2× your regular hourly rate. It is not required by federal law — it applies based on state law or employer policy. In California, double-time applies after 12 hours in a single workday or on the seventh consecutive workday in a week. Some companies offer it voluntarily for holidays or emergency call-ins. The overtime calculator on this site supports double-time — enable the toggle to include those hours.

Under the FLSA, a workweek is any fixed, regularly recurring period of 168 hours — seven consecutive 24-hour periods. It does not need to coincide with a calendar week. Employers set their own workweek start day, but once established, it must remain consistent. Overtime is calculated per workweek, not per pay period, meaning you cannot average hours across two weeks to avoid paying overtime.

For non-exempt employees, an employer cannot legally refuse to pay overtime for hours actually worked over 40 in a workweek — even if they did not authorize those hours. The employer may discipline or terminate an employee for working unauthorized overtime, but they must still compensate for the time worked. If you believe you have been denied legally owed overtime, contact your state's Department of Labor or a licensed employment attorney.