Overtime pay is one of the most important concepts in employment compensation. Under the Fair Labor Standards Act (FLSA), non-exempt employees in the United States must receive overtime pay at a rate of 1.5 times (time and a half) their regular hourly rate for any hours worked beyond 40 in a single work week.
What Is Time and a Half?
“Time and a half” means you earn your normal hourly rate plus half of that rate for every overtime hour. The formula is simple:
Overtime Pay = Regular Hourly Rate ? 1.5 ? Overtime Hours Worked
Real-World Examples
| Scenario | Regular Rate | Hours Worked | Regular Pay | Overtime Hours | Overtime Pay (1.5x) | Total Weekly Pay |
|---|---|---|---|---|---|---|
| Entry-level retail | $15.00 | 45 | $600.00 | 5 | $112.50 | $712.50 |
| Skilled trades | $25.00 | 50 | $1,000.00 | 10 | $375.00 | $1,375.00 |
| Nursing | $35.00 | 48 | $1,400.00 | 8 | $420.00 | $1,820.00 |
| IT professional | $50.00 | 55 | $2,000.00 | 15 | $1,125.00 | $3,125.00 |
| Construction | $30.00 | 60 | $1,200.00 | 20 | $900.00 | $2,100.00 |
Who Qualifies for Overtime?
Not all employees are eligible for overtime pay. The FLSA divides workers into two categories:
- Non-exempt employees: Must receive overtime pay. Includes most hourly workers, retail staff, nurses, construction workers, and administrative support staff.
- Exempt employees: Not entitled to overtime. Includes certain executive, administrative, professional, and outside sales employees who meet salary threshold tests.
As of 2026, the salary threshold for exempt status is approximately $43,888 per year ($844 per week), though this varies by state.
State-Specific Overtime Rules
Some states have their own overtime laws that are more generous than federal requirements:
- California: Overtime at 1.5x for hours over 8 per day or 40 per week, and double time for hours over 12 per day
- New York: Overtime at 1.5x for hours over 40 per week
- Colorado: Overtime at 1.5x for hours over 40 per week, with a higher salary threshold
- Oregon: Overtime at 1.5x for hours over 40 per week
- Washington: Overtime at 1.5x for hours over 40 per week
How Overtime Affects Your Annual Income
Regular overtime can significantly boost your annual earnings. For example, a worker earning $20/hour who works 10 hours of overtime each week would earn an additional $15,600 per year (10 hours ? $30/hour ? 52 weeks), bringing their total annual income from $41,600 to $57,200.
Use our overtime pay calculator to estimate your earnings. Also check out our free salary calculator and pay raise calculator for more financial planning tools.
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About the Author
Lin Xiaoqin is a salary researcher and personal finance enthusiast. He founded SalaryCalc.me to help workers understand their true earning power. He has been analyzing compensation structures, tax systems, and labor market data since 2020. His guides are based on official sources including the U.S. Bureau of Labor Statistics, Department of Labor, and IRS publications.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Rates and laws may change. Please consult official government sources for the most current information. Last updated: June 2026.