The one federal rule everyone should know
Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5x their regular rate for hours worked over 40 in a workweek. This is federal law — employers cannot opt out, and state laws can only expand (not reduce) it.
Example. Base rate $22/hr, 48 hours worked. Regular pay: $22 × 40 = $880. Overtime pay: $22 × 1.5 × 8 = $264. Total: $1,144. The 8 extra hours effectively pay $33/hr, not $22.
The FLSA floor is the minimum. Many employers (especially union shops and skilled trades) pay more — 2x for hours over 40, or 1.5x after 8 in a day, or premium rates on weekends and holidays.
State rules that go beyond federal
California: 1.5x after 8 hours in a day, 2x after 12 hours in a day, 2x after 8 hours on the 7th consecutive workday. California effectively requires daily overtime — a 12-hour shift pays regular for 8 hours, 1.5x for hours 9-12.
Alaska, Colorado, Nevada: Daily 1.5x after 8 hours (or 12 in Nevada) regardless of weekly total.
Massachusetts, Rhode Island: 1.5x on Sundays and holidays for retail workers (Massachusetts is phasing out its Sunday premium but it still applies in some cases).
New York hotel/restaurant: Split shift premium; daily spread-of-hours premium.
If you work in one of these states, your OT may kick in sooner than the federal rule. Check your state labor department's wage-and-hour guidance.
The exempt vs non-exempt classification trap
The FLSA's overtime rules apply only to non-exempt workers. Exempt status requires (a) a salary basis, (b) a minimum salary level (currently $35,568/yr federal, with a planned increase to $43,888 as of July 2024 and $58,656 in January 2025 — status in litigation), and (c) job duties that meet the executive, administrative, professional, computer, or outside-sales tests.
Common misclassification: an employer pays a $45,000 "salary" and labels the worker exempt, but the actual duties are primarily clerical, non-discretionary, or rule-based. That's misclassification, and the worker is owed back overtime.
If you work 45+ hours regularly at a salary under $60,000 doing work that is primarily following established procedures, verify your classification. Misclassification claims go to the DOL Wage and Hour Division or state labor departments.
Real example: a misclassified assistant manager
A retail "assistant manager" at a mid-market chain was paid a $42,000 salary to cover 48-50 hours/week. The employer labeled her exempt under the executive exemption. But her actual duties were 80% stocking, running the register, and customer service — not hiring, firing, or directing other workers. Classic misclassification.
She filed a DOL complaint. The back-overtime calculation: regular rate $42,000 / 2,080 = $20.19/hr. Unpaid OT over 18 months at an average of 8 hours/week: 8 × 78 weeks × $20.19 × 1.5 = $18,898 in back pay, before the liquidated damages that often double it.
If you suspect misclassification, the Back Pay Calculator can give you a rough figure to bring to a wage-and-hour attorney.
Double time (2x) — when it applies
Federal law does not require 2x overtime. It's a state or contract matter. California requires 2x for hours over 12 in a day or over 8 on the 7th consecutive day. Many union contracts and some company policies pay 2x on holidays or after a certain threshold.
Use the double-time input in the calculator for holiday pay, 7th-day-in-a-row shifts, or any scheduled 2x premium. The rest of the OT should be entered as standard 1.5x.
Calculating the 'regular rate' correctly
The FLSA defines "regular rate" as total weekly pay / hours worked — which includes non-discretionary bonuses, shift differentials, and piecework but excludes overtime, gifts, and some expense reimbursements. Many employers calculate OT off the straight base rate alone, which understates the OT due.
Example. Base $20/hr, $3/hr shift differential, $200 non-discretionary weekly bonus for hitting a production target, 45 hours worked. Straight base OT (wrong): $20 × 1.5 × 5 = $150. FLSA-correct regular rate: ($20 + $3) × 45 + $200 = $1,235 / 45 = $27.44/hr. OT premium: $27.44 × 0.5 × 5 = $68.60 on top of the straight-time for all 45 hours. Total: $1,303.60.
If your paycheck only gives OT on the $20 base and ignores differentials and bonuses, you may be underpaid.
Disclaimer
This is not legal or tax advice. Overtime pay rules vary by state, by union contract, and by worker classification. The FLSA is federal baseline; state laws frequently go further. Misclassification and regular-rate miscalculations are common but require case-specific analysis. For any wage-and-hour claim, consult an employment attorney or file with the DOL or your state labor department.