How to calculate overtime pay under the FLSA
Under the FLSA, overtime pay is at least 1.5 times the employee's regular rate for every hour over 40 in a workweek. Example: 46 hours at $18.00 pays 40 × $18.00 = $720.00 plus 6 × $27.00 = $162.00, for $882.00. The regular rate includes most pay earned that week, not only the base hourly wage.
The three federal rules that decide the number
- 40 hours per workweek. Non-exempt employees get at least 1.5× their regular rate for hours worked over 40 in a workweek (DOL Fact Sheet #23).
- Each workweek stands alone. A workweek is a fixed, recurring 168-hour period that can start on any day and hour. Hours cannot be averaged: 30 hours one week and 50 the next still means 10 overtime hours in the second week (29 CFR 778.104, 778.105).
- All hours for the employer count. The employer must total all hours the employee works for it in the workweek, even across unrelated job assignments (29 CFR 778.103). Hours at your second store are added to hours at the first.
Example 1: one hourly rate
| Step | Math | Amount |
|---|---|---|
| Straight time | 40 × $18.00 | $720.00 |
| Overtime rate | $18.00 × 1.5 | $27.00/hour |
| Overtime pay | 6 × $27.00 | $162.00 |
| Total | $720.00 + $162.00 | $882.00 |
Example 2: two jobs at two rates in one week
When an employee works two kinds of work at different rates in one workweek, the regular rate is the weighted average: total earnings divided by total hours (29 CFR 778.115).
- 30 hours as cashier at $15.00 = $450.00
- 15 hours as shift lead at $19.00 = $285.00
- Straight-time earnings: $735.00 for 45 hours
- Regular rate: $735.00 ÷ 45 = $16.3333
- Overtime premium: 5 hours × ($16.3333 ÷ 2) = 5 × $8.1667 = $40.83 (all 45 hours were already paid at straight time, so only the extra half is added)
- Total pay: $735.00 + $40.83 = $775.83
Example 3: one employee, two locations
22 hours at Store A plus 24 hours at Store B at $17.00 = 46 hours. Overtime is 6 hours, even though neither store went over 40: 46 × $17.00 = $782.00 plus 6 × $8.50 = $51.00 premium, total $833.00. More on this in reducing overtime across locations.
What goes into the regular rate
| Included | Excluded |
|---|---|
| All pay for employment, unless a statutory exclusion applies | Expense reimbursements |
| Reasonable cost or fair value of non-cash pay such as meals or lodging | True overtime, weekend or holiday premiums |
| Weighted average when two or more rates apply | Discretionary bonuses and special-occasion gifts |
| A flat sum paid regardless of hours worked | Pay for time off for vacation, holidays or illness |
Source: DOL Fact Sheet #23. The regular rate may not be below the minimum wage.
What the FLSA does not require
- Overtime for Saturdays, Sundays, holidays or regular days off, unless the hours exceed 40 (DOL Overtime Pay page).
- A cap on hours for employees 16 and older (same page). Minors 14–15 have hour limits: see scheduling minors.
Overtime cannot be waived by agreement. A rule that overtime must be pre-approved does not cancel the duty to pay for overtime actually worked (Fact Sheet #23). Work that is not requested but is "suffered or permitted" is work time (29 CFR 785.11).
States with different overtime thresholds
As listed by the US DOL state minimum wage table (updated November 5, 2026):
| State | Premium pay after |
|---|---|
| Alaska | 8 hours a day or 40 a week; not applicable to employers of fewer than 4 employees |
| California | 1.5× after 8 hours a day, 40 a week and the first 8 hours on the 7th day; 2× after 12 hours a day and after 8 hours on the 7th day |
| Colorado | 12 hours a day or 40 a week |
| Kentucky | 40 a week; 1.5× on the 7th day when the employee works all 7 days |
| Nevada | 8 hours a day for employees earning less than 1.5× the state minimum wage; 40 a week for all |
| Minnesota | 48 hours a week under state law (the federal 40-hour rule still applies to FLSA-covered employers) |
Per-state pages are in labor laws by state. Exempt salaried staff are covered in exempt vs non-exempt.
This is general information, not legal advice. Check your state labor department for current rules.
This is general information, not legal advice. Check your state labor department for current rules.
Questions
How do I calculate time and a half?
Multiply the regular rate by 1.5 and by the hours over 40 in the workweek. At $18.00, 6 overtime hours pay 6 × $27.00 = $162.00.
Can I average hours over two weeks to avoid overtime?
No. 29 CFR 778.104 says each workweek stands alone; 30 hours one week and 50 the next means 10 overtime hours in the second week.
Do hours at two of my stores add up for overtime?
Yes. 29 CFR 778.103 requires the employer to total all hours the employee works for it in the workweek.
Is weekend or holiday work paid at overtime?
Not under the FLSA unless total hours exceed 40 in the workweek; state law or your own policy may add a premium.
What if an employee works overtime I did not approve?
You still pay it. Fact Sheet #23 says an announcement that unapproved overtime will not be paid does not remove the right to it.
Sources
- US DOL WHD Fact Sheet #23: Overtime Pay Requirements of the FLSA (revised October 2019) (checked 2026-11-12)
- US DOL WHD: Overtime Pay (checked 2026-11-12)
- eCFR 29 CFR 778.103 The workweek as the basis for applying section 7(a) (checked 2026-11-12)
- eCFR 29 CFR 778.104 Each workweek stands alone (checked 2026-11-12)
- eCFR 29 CFR 778.105 Determining the workweek (checked 2026-11-12)
- eCFR 29 CFR 778.115 Employees working at two or more rates (checked 2026-11-12)
- eCFR 29 CFR 785.11 Work suffered or permitted (checked 2026-11-12)
- US DOL WHD: State Minimum Wage Laws (updated November 5, 2026) (checked 2026-11-12)