What is Overtime Pay? The Complete 2024 Guide

Overtime pay is the additional compensation American workers earn when they work beyond a standard hours threshold — typically more than 40 hours in a single workweek. Required by the federal Fair Labor Standards Act (FLSA), overtime is paid at 1.5 times an employee's regular hourly rate, also known as "time and a half."

The legal definition of overtime

Under federal law, overtime pay is governed by the Fair Labor Standards Act (FLSA), which has been the cornerstone of US wage and hour law since 1938. The FLSA requires covered, non-exempt employees to receive overtime pay for hours worked over 40 in a workweek, paid at no less than 1.5× their regular rate of pay.

Who qualifies for overtime pay?

The vast majority of US workers are entitled to overtime. To qualify, you generally must be:

An employee (not an independent contractor)
Covered by FLSA (most employees are; FLSA covers employers with $500k+ in annual revenue or those engaged in interstate commerce)
Non-exempt from overtime requirements

Non-exempt employees (qualify for OT)

Most hourly workers
Salaried employees earning under $43,888/year ($844/week as of July 2024)
Most blue-collar workers regardless of pay
First responders
Most healthcare staff (with industry-specific rules)

Exempt employees (don't qualify for OT)

Executive employees who manage 2+ employees and earn at least $844/week
Administrative employees performing non-manual office work using independent judgment, earning $844+/week
Learned professionals (lawyers, doctors, certified accountants, registered architects)
Outside sales representatives
Computer professionals earning $27.63/hr or $844/week salary
Highly compensated employees earning $132,964+/year (rising to $151,164 in 2025)

⚠️ Important: Job title doesn't determine exempt status

Just being called a "manager" or "supervisor" doesn't make someone exempt. To legally classify a worker as exempt, the employer must prove they meet BOTH the salary test AND the duties test specific to that exemption category.

How much overtime pay should you earn?

Federal law requires at least 1.5× your regular hourly rate for overtime hours. Some employers voluntarily pay more, but the floor is set by FLSA.

Some states require more in specific circumstances:

California: Double time (2×) after 12 hours in a workday
Massachusetts and Rhode Island: 1.5× pay for retail workers on Sundays/holidays
Connecticut: 1.5× for retail Sundays and holidays

What hours count as work time?

Compensable work time includes more than just your scheduled shift. Under FLSA, the following typically count as work time and must be included when calculating overtime:

Mandatory training and meetings
On-call time when restricted to a specific location
Pre-shift preparation (donning safety gear, computer login)
Post-shift duties (closing procedures, cleanup)
Travel time during the workday between job sites
Short rest breaks (under 20 minutes)

Generally NOT compensable: meal breaks (30+ minutes), commute time to and from home, personal off-duty time.

Common overtime myths

"My employer can give me comp time instead of OT pay." Generally false for private sector employees. Only public sector (government) workers can receive comp time in lieu of OT pay.
"I waived my right to overtime in my contract." False. You cannot legally waive the right to overtime under FLSA.
"I'm salaried, so I don't get overtime." Often false. Salaried doesn't mean exempt — your salary level and duties determine eligibility.
"Overtime is taxed at a higher rate." False. Overtime income uses the same marginal tax brackets as regular pay.
"My employer can require me to work unpaid overtime." False. All hours worked must be paid, even if you forgot to clock in.

What to do if you're not being paid overtime

If you believe you're owed unpaid overtime, you have options:

Document your hours. Keep your own records of hours worked, including any "off the clock" work.
Talk to your employer or HR. Sometimes it's a simple mistake.
File a complaint with the US DOL. The Wage and Hour Division investigates wage theft.
File a state-level claim. Many states have stronger protections and faster processes.
Hire a wage and hour attorney. Many work on contingency — they only get paid if you do.

Federal claims must generally be filed within 2 years (3 years for willful violations). Don't delay.