How Overtime Pay Works in the US

A plain explanation of federal overtime rules, who qualifies, and how to calculate it.

Federal law requires employers to pay non-exempt employees at least one and a half times their regular rate for hours worked over 40 in a workweek.

Who is exempt?

Some salaried employees in executive, administrative, or professional roles are exempt, if they meet salary and duties tests. Job titles alone do not decide it.

A quick example

If you earn $20 an hour and work 46 hours, you earn $800 for the first 40 hours and $180 for 6 overtime hours at $30 an hour, for $980 gross.

State rules

Some states, such as California, also require overtime after 8 hours in a day. Check your state labor department for details, then run your numbers in the overtime calculator.

Updated October 2026. For information only, not tax advice.