The Overtime Pay Formula
Overtime Pay = Hourly Wage × Overtime Multiplier × Overtime Hours
Total Pay = Regular Pay + Overtime Pay
Federal Overtime Rules (FLSA)
Under the federal Fair Labor Standards Act (FLSA), most non-exempt hourly employees must be paid at least 1.5 times their regular rate for hours worked beyond 40 in a workweek. Some states and specific circumstances (like certain holidays in a few states) may require double-time — check your state's specific labor laws.
Exempt vs. Non-Exempt Employees
Not all employees are entitled to overtime — "exempt" employees (typically certain salaried professional, administrative, executive, or highly compensated roles meeting specific criteria) aren't covered by FLSA overtime requirements, while "non-exempt" employees are. Consult your employer or a labor law resource if you're unsure of your classification.