The ultimate guide to overtime pay & FLSA regulations

"Time and a half" is the standard premium compensation rate paid to non-exempt employees for working extra hours. Mathematically, it equals 1.5 times an employee’s regular hourly rate of pay.

For example, if your standard rate is $22.00 per hour, your time and a half overtime rate is calculated as:$22.00 × 1.5 = $33.00/hourIf you work 6 overtime hours at this premium rate, you earn an extra $198.00 ($33.00 × 6) on top of your normal weekly pay.

Established in 1938, the U.S. Fair Labor Standards Act (FLSA) is the federal cornerstone of wage and hour protection. It mandates that covered, non-exempt employees must receive overtime pay for all hours worked in excess of 40 hours in a designated workweek.

Not every salaried employee is automatically exempt from receiving overtime pay. Under the FLSA, an employer must prove that an employee meets all three prongs of the exemption test to deny them time and a half:

Under the U.S. Constitution, states are free to implement labor laws that are stricter than the federal minimum. When a state law is more protective of the worker, state law completely overrides federal FLSA rules.

Several states require employers to pay 1.5× time and a half based on a single workday threshold, rather than the federal 40-hour workweek:

What happens when an employee works two different jobs with different hourly rates in the same week? (For example, working 30 hours as a Security Guard at $18.00/hr, and 15 hours as a Shift Supervisor at $24.00/hr).

Under FLSA rules, employers cannot simply calculate overtime based on the lower rate. They must calculate a blended regular rate of pay (the weighted average):

Need to calculate overtime for a specific scenario with bonuses or multiple rates? Use the regular rate of pay calculator for step-by-step overtime estimates.

A common calculation error committed by payroll departments is excluding production bonuses, attendance incentives, and commissions from the regular hourly base rate when calculating overtime.

Under the FLSA, nondiscretionary bonuses must be added back to regular pay to establish the base overtime rate. For example, if you earn $20.00/hour and receive a $100.00 attendance bonus for working 50 hours in a week:

• Base hourly earnings: 50 hours × $20.00 = $1,000.00
• Total earnings with bonus: $1,000.00 + $100.00 = $1,100.00
• Regular rate for calculations: $1,100.00 ÷ 50 hours = $22.00/hour
• Time & a half overtime premium: $22.00 × 0.5 = $11.00/hour premium
• Overtime wages: 10 OT hours × $11.00 = $110.00
• Total weekly compensation: $1,100.00 + $110.00 = $1,210.00

Hospitals and residential nursing care establishments can opt into a unique overtime structure known as the 8/80 Rule instead of the standard 40-hour workweek.

Under an 8/80 agreement:

• Overtime is paid for all hours worked beyond 8 in a single workday.
• AND overtime is paid for all hours worked beyond 80 in a 14-day payroll period.

This system provides hospitals with scheduling flexibility while protecting healthcare professionals from grueling consecutive shifts.

Can private employers pay "compensatory time off" (comp time) instead of paying time and a half cash wages?

If you believe your employer is miscalculating your time and a half, misclassifying your exempt status, or refusing to count off-the-clock preparation hours, follow these steps to protect your wages:

1. Keep Independent Records: Log your clock-in, clock-out, and break times on paper or in a secure personal app. Do not rely solely on your employer's portal.
2. Review Pay Stubs: Verify that all nondiscretionary bonuses, commissions, and standard hourly categories are clearly items on your pay stubs.
3. Consult HR in Writing: Ask your payroll department for a written breakdown of how your blended rate or regular rate was calculated.
4. File a Wage Claim: You can file a free, anonymous wage claim with the U.S. Department of Labor's Wage and Hour Division (WHD) or your state labor commissioner. The FLSA includes strong anti-retaliation protections.