Income & Work

What Is Overtime Pay?

Overtime pay is extra compensation for hours worked beyond a set threshold. Under the US Fair Labor Standards Act, covered non-exempt employees must be paid at least 1.5 times their regular rate for hours over 40 in a workweek, commonly called time-and-a-half. Some states have additional daily overtime rules.

How to Calculate Overtime

Overtime pay = overtime hours × regular hourly rate × 1.5. With a 20 hourly rate and 5 overtime hours, overtime pay is 5 × 20 × 1.5 = 150.

Double Time

Some employers and some state laws pay double time (2×) in specific situations, such as very long days or certain holidays.

Other Countries

Overtime rules, thresholds, and multipliers differ by country and by employment contract.

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.