Quick facts
- Federal rule: overtime at not less than time and one-half the regular rate for hours over 40 in a workweek (FLSA, U.S. Department of Labor).
- A workweek is a fixed, recurring period of 168 hours (seven consecutive 24-hour periods) and need not match the calendar week.
- Hours cannot be averaged over two or more weeks; each workweek stands alone (29 CFR 778.104).
- Employees who qualify for an FLSA exemption are not entitled to this overtime; states may add their own overtime rules.
What it means in practice
Under the Fair Labor Standards Act (FLSA), the Department of Labor says that, unless exempt, covered employees must receive overtime pay for hours worked over 40 in a workweek, at not less than one and one-half times their regular rates of pay. Whether an employee is owed overtime depends largely on classification; see our guide to exempt vs. non-exempt employees.
The workweek is the unit that matters. The federal regulations define it as a fixed and regularly recurring period of 168 hours, which can begin on any day and at any hour, and an employer may set different workweeks for different groups of employees (29 CFR 778.105). Each workweek stands alone: the regulations give the example of an employee who works 30 hours one week and 50 the next, who is owed overtime for the hours beyond 40 in the second week even though the two-week average is 40 (29 CFR 778.104). The Department of Labor also notes that the FLSA does not require overtime pay for Saturday, Sunday, holiday or regular-day-of-rest work as such. Overtime is owed only when the hours in the workweek exceed 40. The Act sets no limit on the hours employees aged 16 and older may work.
Overtime is computed on the "regular rate," which is not always the base hourly wage. The regulations say the regular rate is an hourly rate drawn from what actually happens under the employment contract, and the FLSA requires inclusion of all remuneration for employment except payments the Act specifically excludes (29 CFR 778.108 and 778.109). The Department of Labor lists discretionary bonuses among the payments that are not part of the regular rate. For salaried, commission or piece-rate workers, the regular hourly rate is found by dividing total remuneration for the workweek by the hours actually worked.
Example. The regulations give this illustration: an employee paid a single hourly rate of $12 who works 46 hours in a week is owed $12 for 40 hours and $18 for the 6 overtime hours, a total of $588 (29 CFR 778.110). If that employee also earns a $46 production bonus for the week, the regular rate rises to $13 an hour and the total owed becomes $637.
Timing and state law. The general rule is that overtime earned in a workweek must be paid on the regular payday for the pay period in which that workweek ends (29 CFR 778.106). The Department of Labor also states that the overtime requirement may not be waived by agreement between the employer and employees. This entry describes the federal baseline only. Some states have their own overtime rules, and where state law is more protective, the employer needs to comply with it as well. Check your state labor department.
Why it matters and common mistakes
Common errors drawn from the rules above: averaging hours over two weeks to avoid overtime, calculating overtime on the base rate when other pay belongs in the regular rate, assuming a salary or a job title ends the overtime question, and paying overtime late rather than on the regular payday.
The FLSA also requires covered employers to keep employee time and pay records, and the Department of Labor publishes civil money penalties for repeated or willful violations of the minimum wage and overtime provisions that are adjusted each year. Back-pay and penalty exposure depend on the facts, so confirm specifics with the Department of Labor, your state labor department, or a qualified professional.
How Remindax helps
Remindax helps you track the dates and deadlines tied to overtime pay reviews and sends reminders before they're due. Remindax does not provide legal, tax, or HR advisory services, and this page is for general informational purposes only - consult a qualified attorney, accountant, or HR professional for guidance specific to your situation.
Related terms
See all terms in Payroll & Compensation Basics.
Sources & References
- U.S. Department of Labor - Overtime Pay - overtime for hours over 40 in a workweek at 1.5x regular rate; no hour limit age 16+; no overtime for weekend/holiday work as such; workweek is 168 hours; no averaging
- DOL Fact Sheet #23 - Overtime Pay Requirements of the FLSA - regular rate includes all remuneration except statutory exclusions; discretionary bonuses excluded; overtime cannot be waived by agreement
- DOL - Fair Labor Standards Act - recordkeeping requirement; civil money penalty table for repeated or willful violations
- eCFR - 29 CFR Part 778 Overtime Compensation - sections 778.103-778.110: workweek, no averaging, time of payment, regular rate, $12/46-hour example
Last reviewed: October 2026. Figures are reviewed annually - see Sources & References for current figures.