Overtime Pay Basics
How FLSA overtime generally works for nonexempt employees, what “time and a half” means, and how overtime appears on a pay stub.
Federal FLSA baseline
Under the federal Fair Labor Standards Act (FLSA), most nonexempt employees must receive overtime pay of at least 1.5× their regular rate for hours over 40 in a workweek, unless an exemption applies. Some states require daily overtime or stricter rules.
Regular rate matters
Overtime is not always “hourly rate × 1.5” in isolation. Certain bonuses and premiums can affect the regular rate used for overtime calculations.
On the pay stub
Overtime often appears as a separate earnings line (OT hours × OT rate) so gross pay stays transparent.
State overlays
California and some other states have daily overtime and meal/rest premium concepts that go beyond the federal weekly rule. See our state payroll guides for jurisdiction-specific notes.
Frequently asked questions
Is overtime taxed differently?
Overtime is taxable wages. Withholding may look higher on a large OT check because more income falls into withholding formulas — that does not mean OT has a special permanent tax rate.
Do salaried employees get overtime?
Some salaried employees are nonexempt and still entitled to overtime. Job title alone does not decide exemption status.
Sources
See also our full sources list, methodology, and editorial standards. This page is educational and not tax, legal, or accounting advice.
Put the numbers on a real stub
Preview federal, FICA, and state amounts with your own pay details.