Federal rules reviewed: October 2026
OVERTIME
Overtime Pay: Understand the 40-Hour Rule and Your Regular Rate
Federal overtime is not always as simple as multiplying your normal hourly rate by 1.5. The number of hours worked, the regular rate, shift differentials, multiple hourly rates and other compensation can all affect the calculation.
What are you trying to check?
Start with the part of your overtime calculation that looks wrong.
I know my hours and rate
Estimate overtime once you know the number of compensable hours and the applicable regular rate.
Overtime Calculator →
I worked at two hourly rates
See how the weighted regular rate can work when different straight-time rates apply in the same workweek.
Two Hourly Rates →
I received night or shift differential pay
Learn why ordinary shift differential compensation can affect the regular rate used for overtime.
Shift Differential Pay →
My overtime hours may be missing
If training, breaks, on-call work or other time was omitted, reconstruct your total hours before checking the overtime calculation.
Check Work Hours →
THE FEDERAL RULE
When does overtime generally begin?
For employees covered by the federal overtime provisions and who are not exempt, overtime generally begins after 40 hours actually worked in a workweek.
The workweek is a fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods.
It does not have to match the calendar week.
An employer may establish different workweeks for different employees or groups of employees, but hours generally cannot be averaged across two or more workweeks to avoid overtime.
If you work 45 hours one week and 35 the next, the two weeks are not normally averaged into 40 hours each for federal overtime purposes.
Overtime starts with hours worked
Before calculating overtime pay, you need the correct number of compensable hours.
That means the first question is not:
“What is my overtime rate?”
It is:
“How many hours legally count as work this week?”
Your total may be affected by:
- required training;
- on-call work;
- short paid breaks;
- work performed during an unpaid meal period;
- pre-shift or post-shift work;
- certain waiting time;
- certain travel time;
- work performed remotely after the scheduled shift.
If your timecard itself looks wrong, start with the Work Hours hub.
What is the regular rate?
The regular rate is the rate federal law uses as the basis for calculating overtime.
It is not always the same as the base hourly rate printed in an offer letter or payroll system.
The Department of Labor summarizes the general formula as:
Total compensation that must be included for the workweek
÷
Total hours worked in the workweek
= Regular rate
The FLSA starts from the principle that remuneration for employment is included unless a statutory exclusion applies.
This can make the regular rate higher than the worker’s basic hourly rate.
RELATED HUB
Understand your pay components first
If you have shift differentials, multiple rates or other forms of extra compensation, the Pay hub explains how those payments fit together.
Simple overtime example
Suppose an employee earns $20 per hour and works 45 hours in one workweek.
If there are no other payments affecting the regular rate:
| Item | Calculation | Amount |
|---|---|---|
| Regular hours | 40 × $20 | $800 |
| Overtime rate | $20 × 1.5 | $30 |
| Overtime hours | 5 × $30 | $150 |
| Total | $950 |
That is the familiar “time-and-a-half” example.
But many real paychecks are more complicated because the employee does not earn exactly the same compensation for every hour.
Why base rate × 1.5 is not always enough
Suppose your base rate is $20, but some hours also receive a $2 night-shift differential.
If that differential belongs in the regular rate, the federal overtime calculation may need to account for it.
The same issue can arise when an employee:
- works at two different hourly rates;
- receives a shift differential;
- receives certain nondiscretionary bonuses;
- earns commissions;
- receives other compensation that must be included in the regular rate.
So the shortcut:
base hourly rate × 1.5
works only when the base hourly rate is also the relevant regular rate.
Overtime with two hourly rates
If an employee performs two types of work at different established straight-time rates during the same workweek, the general federal method uses a weighted average.
That means:
- calculate earnings at each rate;
- add those earnings together;
- divide by total hours worked;
- use the resulting regular rate to calculate the overtime premium.
Example
An employee works:
- 30 hours at $18; and
- 15 hours at $24.
Total earnings:
(30 × $18) + (15 × $24)
$540 + $360 = $900
Total hours:
45
Weighted regular rate:
$900 ÷ 45 = $20
Five overtime hours therefore require the appropriate overtime premium based on that regular rate.
Federal law also permits an alternative rate-in-effect method in certain situations when the requirements of FLSA section 7(g)(2) are satisfied, so the weighted-average method should not be treated as the only possible arrangement in every case.
Shift differential and overtime
Ordinary shift differential compensation is generally included in the regular rate.
That can matter when an employee works both daytime and night hours in the same week.
For example:
- base rate: $20;
- night differential: $2;
- some hours paid at $20;
- some hours paid at $22;
- total hours exceed 40.
The overtime calculation should not automatically ignore the additional night-shift compensation.
Not every extra payment is treated the same way
The FLSA identifies specific categories of payments that may be excluded from the regular rate when the legal requirements are met.
Examples can include certain:
- discretionary bonuses;
- gifts;
- expense reimbursements;
- payments for periods when no work is performed, such as certain vacation or holiday payments;
- true premium payments for qualifying weekend, holiday or overtime work.
Other payments, such as many nondiscretionary bonuses and ordinary shift differentials, generally must be included.
Calling a payment a “bonus,” “premium” or “special pay” does not automatically determine whether it belongs in or outside the regular rate.
Does Saturday or Sunday automatically mean overtime?
No.
Under the general federal rule, overtime is based on total hours worked in the workweek, not simply the day on which those hours occurred.
For example:
| Schedule | Total hours | Federal overtime starting point |
|---|---|---|
| Monday–Thursday, 10 hours each day | 40 | No overtime solely from the federal 40-hour rule |
| Tuesday–Saturday, 8 hours each day | 40 | No overtime solely because Saturday was worked |
| Monday–Friday, 9 hours each day | 45 | 5 hours over the federal weekly threshold |
State law may impose daily overtime or other additional requirements, so this hub should be read as a federal baseline.
Can an employer average two weeks together?
Generally no.
Suppose you work:
- Week 1: 46 hours
- Week 2: 34 hours
The two weeks total 80 hours, but federal overtime generally does not allow the employer to average them into two 40-hour weeks.
The six hours over 40 in Week 1 must be analyzed within that workweek.
This is an important distinction because payroll periods can cover two weeks even though overtime is still determined workweek by workweek.
Overtime and pay periods are not the same thing
An employer may pay employees weekly, biweekly, semimonthly or on another lawful payroll schedule.
But the federal overtime calculation is based on the employee’s established workweek.
So a two-week paycheck does not mean the employer can simply check whether the employee worked more than 80 hours during the entire pay period.
The hours should generally be evaluated separately within each workweek.
How to check an overtime paycheck
Reconstruct all compensable hours
Do not rely only on scheduled hours. Include work time that may have been omitted from the timecard.
Separate each workweek
Do not combine hours across two weeks simply because they appear on the same paycheck.
Identify all rates and included compensation
Look for shift differentials, multiple hourly rates, bonuses or other payments.
Determine the regular rate
Use compensation that must be included under the FLSA and total hours worked.
Compare the overtime premium with payroll
Once the hours and regular rate are correct, compare the calculated overtime with the amount actually paid.
Use the overtime calculator after you have checked your workweek hours and applicable rate.
COMING NEXT
Overtime topics we are expanding
These topics belong inside the Overtime cluster and will be added to this hub as individual guides are published.
Regular Rate of Pay
A deeper guide to what belongs in the regular rate, statutory exclusions and why the regular rate can differ from the base hourly rate.
Planned guide
Bonuses and Overtime
How discretionary and nondiscretionary bonuses can receive different treatment in the federal overtime calculation.
Planned guide
Overtime With Shift Differential
A focused calculation guide for workers who receive extra compensation for evening, night or other designated shifts.
Covered partly now; dedicated guide only if search demand justifies it
Overtime guides and tools
Overtime Calculator
Estimate federal overtime once you know your hours worked and applicable rate.
Overtime Pay With Two Hourly Rates
See how a weighted regular rate works when an employee performs jobs paid at different straight-time rates.
Shift Differential Pay
Understand how night and other shift differentials can affect the regular rate and overtime.
Related PayHoursLab hubs
Work Hours
Determine which breaks, training, on-call periods and other activities count toward total hours worked.
Explore Work Hours →
Pay & Pay Rates
Understand base rates, shift differentials and other compensation before applying overtime rules.
Explore Pay →
Calculators
Use PayHoursLab tools to reconstruct hours and estimate pay.
View Calculators →
Overtime pay FAQ
When does federal overtime start?
For covered, nonexempt employees, the general FLSA rule requires overtime after 40 hours worked in a workweek. Special rules and exemptions can apply in some occupations and circumstances.
Is overtime always exactly 1.5 times my base hourly rate?
No. Federal overtime is based on the regular rate. If your base hourly rate does not include all compensation that belongs in the regular rate, simply multiplying the base rate by 1.5 may not produce the correct result.
Can my employer average my hours over two weeks?
Generally no. Overtime is determined workweek by workweek even when a paycheck covers more than one week.
Does Saturday or Sunday automatically count as overtime?
No. Under the general federal rule, overtime depends on hours worked over 40 in the workweek, not simply the day on which the work occurred.
Does shift differential count toward overtime?
Ordinary shift differential compensation is generally included when determining the regular rate.
What happens if I work at two different hourly rates?
The general federal method uses a weighted regular rate based on earnings at the different straight-time rates and total hours worked, although certain alternative methods may apply when their legal requirements are satisfied.
Do unpaid training or break errors affect overtime?
They can. If time that should count as hours worked was omitted, adding those hours may change whether the employee exceeded 40 hours during the workweek.
Can state overtime rules be different?
Yes. Some states provide protections beyond the federal baseline, including daily overtime or other requirements. This hub focuses on the general federal FLSA framework.
Official federal resources
- U.S. Department of Labor — Fact Sheet #23: Overtime Pay Requirements of the FLSA
- U.S. Department of Labor — Fact Sheet #56A: Overview of the Regular Rate of Pay
- U.S. Department of Labor — Fact Sheet #22: Hours Worked Under the FLSA
- 29 CFR Part 778 — Overtime Compensation
Scope: PayHoursLab provides general educational information and calculation tools. This hub explains the general federal FLSA framework. State and local laws, exemptions, contracts and collective bargaining agreements can change the result in a particular situation. This page is not legal advice.