What is the federal overtime rate under FLSA?

Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek. This applies to most hourly employees and some salaried employees earning less than $684 per week.

Which states have daily overtime requirements?

California requires overtime after 8 hours per day and double time after 12 hours. Alaska requires overtime after 8 hours per day. Nevada has daily overtime for certain employees. Colorado requires overtime after 12 hours per day. Most other states follow federal weekly-only rules.

Who is exempt from overtime pay?

Exempt employees include executives, administrators, professionals, computer employees, and outside sales workers who meet specific salary and duties tests. They must earn at least $684 per week ($35,568 annually) and perform primarily executive, administrative, or professional duties.

How do you calculate overtime pay?

Overtime pay = Regular hourly rate × 1.5 × Overtime hours. For example, if you earn $20/hour and work 10 overtime hours: $20 × 1.5 × 10 = $300 in overtime pay. Add this to your regular pay for total compensation.

What is double time pay?

Double time pay is compensation at twice the regular rate, typically required in California after 12 hours in a day or 8 hours on the 7th consecutive day. Some employers voluntarily offer double time for holidays or excessive overtime hours.

Can employers require overtime work?

Yes, employers can generally require overtime work from non-exempt employees, though they must pay the overtime rate. Some states and union contracts may limit mandatory overtime. Employers cannot retaliate against employees for refusing to work overtime in certain protected situations.

Overtime Calculator - Calculate Overtime Pay & Labor Law Compliance | Free Tool

Complete Guide to Overtime Pay and Labor Law Compliance

Understanding Overtime Laws

Overtime laws protect workers by ensuring fair compensation for extended work hours. The Fair Labor Standards Act (FLSA) establishes federal minimum standards, while states may provide additional protections.

Our calculator helps employers and employees understand overtime obligations, calculate proper compensation, and ensure compliance with applicable laws.

Key Overtime Concepts

• Regular Rate: Base hourly pay for overtime calculations
• Time and a Half: 1.5x regular rate for overtime hours
• Double Time: 2x regular rate for excessive hours
• Workweek: Fixed 168-hour period for overtime calculations
• Non-Exempt: Employees eligible for overtime pay
• Exempt: Employees not entitled to overtime pay

Federal vs. State Overtime Laws

Federal FLSA Requirements

Basic Standards

• Overtime after 40 hours per week
• 1.5x regular rate for overtime
• No daily overtime requirement
• Applies to non-exempt employees
• $7.25 federal minimum wage

Exempt Employee Tests

• Salary of at least $684/week ($35,568/year)
• Executive duties test
• Administrative duties test
• Professional duties test
• Computer employee exception

California Overtime Laws

California has the most comprehensive overtime laws in the US:

• Overtime after 8 hours per day
• Overtime after 40 hours per week
• Double time after 12 hours per day
• Double time after 8 hours on 7th consecutive day
• Higher salary threshold for exemptions
• Stricter duties tests

Other State Variations

Alaska: Daily overtime after 8 hours

Nevada: Daily overtime after 8 hours (if paid less than 1.5x minimum wage)

Colorado: Daily overtime after 12 hours

Minnesota: Weekly overtime after 48 hours

Note: When federal and state laws differ, the more generous standard applies.

Calculating Overtime Pay

Step-by-Step Calculation

Example: 50-hour work week

Regular rate: $20/hour

Regular hours: 40 hours × $20 = $800

Overtime hours: 10 hours × ($20 × 1.5) = 10 × $30 = $300

Total pay: $800 + $300 = $1,100

Effective rate: $1,100 ÷ 50 hours = $22/hour

California Example: 12-hour day

Regular rate: $25/hour

Regular time: 8 hours × $25 = $200

Overtime: 4 hours × ($25 × 1.5) = $150

Double time: 0 hours (starts after 12 hours)

Total pay: $200 + $150 = $350

Common Overtime Violations and Penalties

Misclassification

Incorrectly classifying non-exempt employees as exempt

• Back pay for unpaid overtime
• Liquidated damages (double damages)
• Attorney fees and court costs
• DOL investigations

Unpaid Overtime

Failing to pay required overtime premiums

• 2-3 years of back wages
• Equal amount in liquidated damages
• Civil penalties up to $2,074 per violation
• Criminal penalties for willful violations

Recordkeeping Failures

Inadequate time and pay records

• Presumption against employer
• Burden of proof shifts to employer
• Additional penalties and fines
• Audit triggers and investigations

Best Practices for Overtime Management

For Employers

• Accurate Classification: Regularly review exempt/non-exempt status
• Time Tracking: Implement reliable timekeeping systems
• Approval Processes: Require pre-approval for overtime work
• Regular Audits: Review payroll for compliance issues
• Training: Educate managers on overtime laws
• Documentation: Maintain detailed records for 3+ years

For Employees

• Know Your Rights: Understand applicable overtime laws
• Track Time: Keep personal records of hours worked
• Report Issues: Notify HR of potential violations
• Understand Classification: Know if you're exempt or non-exempt
• Review Pay Stubs: Verify overtime calculations
• Seek Help: Contact DOL or attorney if needed

Start Managing Overtime Compliance Today

Use our comprehensive overtime calculator to ensure accurate pay calculations and labor law compliance. Whether you're an employer managing payroll costs or an employee verifying your pay, our tool provides the analysis you need.

Stay compliant with federal and state overtime laws while managing labor costs effectively. Our calculator helps you understand the true cost of overtime and make informed staffing decisions.