How to Calculate Overtime Pay (FLSA Rules + Examples)

By Jorge Sanchez · April 20, 2026 · 5 min read

Under the Fair Labor Standards Act (FLSA), most hourly workers must receive overtime pay — 1.5 times their regular rate — for every hour worked beyond 40 in a workweek. Here's exactly how it's calculated.

The Overtime Formula

Hourly Worker Examples

Salaried Employees: How to Calculate Your Regular Rate

If you're salaried but non-exempt (eligible for overtime), your regular hourly rate is:

Example: You earn $52,000/year = $1,000/week. Your regular rate = $1,000 ÷ 40 = $25/hr. If you work 50 hours in a week, you earn an additional 10 × $12.50 = $125 in overtime (the "half" portion only, since the straight-time is already covered by your salary).

Who Is Exempt from Overtime?

The following are typically exempt from FLSA overtime requirements:

• Executive employees who manage 2+ employees and earn ≥$684/week
• Administrative employees in office/non-manual work with discretion
• Professional employees (lawyers, doctors, teachers, CPAs)
• Computer employees earning ≥$27.63/hr
• Outside salespeople working away from employer's place of business
• Highly compensated employees earning ≥$107,432/year

Note: many states have stricter rules. California uses an 8-hour/day rule in addition to the 40-hour/week rule.

State Overtime Laws

Some states go further than federal law:

• California: OT kicks in after 8 hrs/day. Double time after 12 hrs/day and for 7th consecutive day.
• Nevada: OT after 8 hrs/day for employees earning less than 1.5× minimum wage.
• Alaska, Colorado: Daily overtime rules apply.