Federal overtime is simple at its core: non-exempt employees earn at least 1.5× their regular rate for every hour worked beyond 40 in a single workweek. The complexity lives in three definitions — non-exempt, regular rate and workweek — and in the state rules layered on top.
The three definitions that decide everything
1. Non-exempt
The FLSA covers most hourly workers automatically. “Exempt” employees — not owed overtime — must generally pass both a salary test and a duties test (executive, administrative, professional, certain computer and outside-sales roles). A job title or a salary alone doesn’t make anyone exempt; misclassification is among the most common wage violations.
2. The regular rate
Overtime is 1.5× the regular rate, which is not always the base wage. It must fold in:
- shift differentials,
- non-discretionary bonuses (production, attendance),
- commissions.
Example: $20/hour base + $2/hour night differential → regular rate $22 → overtime rate $33, not $30. Employers who pay 1.5× base only are underpaying.
3. The workweek
A workweek is any fixed, recurring period of 168 hours — 7 consecutive days starting on any day the employer chooses. Overtime is computed inside each workweek separately:
| Week | Hours | Overtime owed |
|---|---|---|
| Week 1 | 46 | 6 |
| Week 2 | 34 | 0 |
| ”Average” (illegal) | 40 | 0 ✗ |
Averaging across a biweekly period is not allowed — which is why the biweekly timesheet calculator shows per-week subtotals.
The math, end to end
A technician earns $24/hour and works 49 hours in the workweek:
- Regular pay: 40 × $24 = $960
- Overtime rate: $24 × 1.5 = $36
- Overtime pay: 9 × $36 = $324
- Gross: $1,284
What if 8 of those hours were paid holiday and only 41 were worked? Then federal overtime applies to 1 hour — only hours actually worked count toward the 40-hour trigger. PTO, holidays and sick time don’t (unless your employer’s policy is more generous).
Where states change the rules
Four states add daily thresholds — the most important being California: 1.5× after 8 hours/day, 2× after 12, plus special 7th-consecutive-day rules. Alaska and Nevada use a daily 8-hour trigger (Nevada’s is wage-dependent), Colorado a daily 12-hour trigger. The full breakdown lives in the California overtime guide, and the overtime calculator ships all four as presets.
Quick self-audit
- Add your hours per workweek — not per pay period — with a time card calculator.
- Check your overtime rate includes differentials and bonuses.
- Confirm hours over 40 (or your state’s daily lines) carry the premium.
- Keep your own records: your timesheet is evidence if numbers ever disagree.