How Does Overtime Pay Work Under FLSA 2026

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The FLSA Overtime Baseline: 40 Hours = Time and a Half

The core rule hasn’t changed since 1938 when the FLSA was enacted:

Overtime Rate = Regular Rate × 1.5

This applies to all non-exempt employees — roughly 60% of the U.S. workforce. The “regular rate” is your base hourly wage before any overtime premium.

Example: If you make $22/hr and work 45 hours in a week:

• First 40 hours: $22 × 40 = $880
• Overtime hours: $22 × 1.5 = $33/hr × 5 = $165
• Total weekly gross: $1,045

That’s an extra $165 for those 5 overtime hours — nothing to sneeze at if you’re trying to hit savings goals or pay down debt.

What Counts Toward the 40-Hour Threshold?

This is where things get tricky. The FLSA has specific rules about which hours count:

Countable hours (included in the 40-hour total):

• All hours physically worked (including training, meetings, and travel)
• Paid vacation days
• Paid sick leave
• Paid holidays
• Jury duty or witness time (if compensated)
• Rest and recovery periods (short breaks typically)

Non-countable hours:

• Commute time (unless you’re driving as part of your job)
• Meal periods (if you’re completely relieved of duty and the meal is for your convenience)
• Bona fide rest periods beyond short breaks
• Volunteer work outside your regular duties
• Bereavement leave (usually unpaid)

I had a friend who worked at a manufacturing plant where the HR department was incorrectly excluding paid training hours from the 40-hour calculation. After she filed an FLSA complaint, the employer had to backpay over $2,300 in unpaid overtime — training definitely counts.

What’s a “Regular Rate” Anyway?

The regular rate isn’t just your base hourly wage. Under the FLSA, it includes most forms of compensation:

Included in the regular rate:

• Base hourly wage
• Non-discretionary bonuses (performance bonuses that employers promise)
• Shift differentials
• Commission payments
• Certain allowances (meal, lodging if they’re compensation)
• Weekly or periodic bonuses

NOT included in the regular rate:

• Discretionary bonuses (employer decides each time)
• Christmas/holiday bonuses (if discretionary)
• Gifts
• Severance pay
• Reimbursed expenses
• Profit-sharing plans (if properly structured)

Calculating regular rate with a bonus example:

Let’s say you earn $20/hr and worked 44 hours last week, plus received a $100 production bonus:

1. Total compensation: ($20 × 44) + $100 = $980
2. Regular rate: $980 ÷ 44 hours = $22.27/hr
3. Overtime rate: $22.27 × 1.5 = $33.41/hr
4. Overtime pay: $33.41 × 4 = $133.64 (instead of $30 × 4 = $120 at the simple rate)

This works out to an extra $13.64 for that week. Over a year with consistent bonuses, that could add up to an extra $500-$700 in overtime pay you might have missed if you’re not calculating the regular rate correctly.

State Laws: When Overtime Starts Sooner

Several states have more generous overtime rules than the federal government. If your employer operates in one of these states, the state rule takes precedence (whichever is more favorable to you):

California:

• Overtime after 8 hours/day (1.5x)
• Double time after 12 hours/day
• Overtime after 40 hours/week (1.5x)
• Double time for hours over 8 on the 7th consecutive day

Alaska:

• Overtime after 8 hours/day (1.5x) — BUT only if the employee works more than 40 hours in the week

Colorado:

• Overtime after 12 hours/day (1.5x)
• Overtime after 40 hours/week (1.5x)

Nevada:

• Overtime after 8 hours/day (1.5x) — for employees earning under $15.50/hr (2026)
• Overtime after 40 hours/week (1.5x)

Kentucky, Rhode Island:

• Overtime after 40 hours/week (1.5x) — same as federal but with specific daily rules

Salaried Employees and Overtime

One of the biggest changes in 2026: the Department of Labor updated the salary threshold for exempt status. Here’s what matters:

Old rule (2016-2025): Salaried employees earning $684/week ($35,568/year) or more were presumed exempt from overtime.

New rule (2026): The salary threshold has been raised to $844/week ($43,888/year). Salaried employees earning below this threshold must now be paid overtime for hours over 40, regardless of their job duties.

Key point: The salary threshold is just one prong of the exemption test. Even if you earn $844+/week, you’re still entitled to overtime if your job duties don’t meet the executive, administrative, or professional exemption criteria. For example, a retail store manager earning $900/week who spends most of their time stacking shelves (not managing) could still qualify for overtime.

Double Time: When It Kicks In

Double time (2x the regular rate) is required under federal law only in specific circumstances, but some states mandate it more broadly:

• Federal: Double time may apply if an employer violates the FLSA (willful violations can result in liquidated damages)
• California: Double time after 12 hours in a day OR over 8 hours on the 7th consecutive workday
• Some union contracts: Double time for Sundays or holidays

Example: Working 13 hours in California at $25/hr:

• First 8 hours: $25 × 8 = $200
• Next 4 hours (over 8, under 12): $25 × 1.5 × 4 = $150
• Last 1 hour (over 12): $25 × 2 × 1 = $50
• Total daily gross: $400

That’s $37.50/hr blended rate for the full day’s work.

Overtime Calculation Examples by Income Level

Let’s look at realistic weekly overtime scenarios across different wage levels for 2026:

$15/hr (California, non-exempt retail worker) working 46 hours:

• 40 hours × $15 = $600
• 6 hours × $22.50 = $135
• Weekly gross: $735 → Annualized: ~$38,220

$25/hr (non-exempt office worker) working 42 hours:

• 40 hours × $25 = $1,000
• 2 hours × $37.50 = $75
• Weekly gross: $1,075 → Annualized: ~$55,900

$35/hr (non-exempt tech support) working 48 hours:

• 40 hours × $35 = $1,400
• 8 hours × $52.50 = $420
• Weekly gross: $1,820 → Annualized: ~$94,640

Use our overtime pay calculator to plug in your own numbers and get an instant calculation.

Workweek Definition: The Hidden Variable

Your employer defines the workweek — it doesn’t have to be Monday through Friday. It could be Sunday through Saturday, or Tuesday through Monday. This matters because:

• Overtime is calculated per workweek, not per calendar week
• If your workweek ends on Sunday at midnight, hours worked on Monday count toward the PREVIOUS week’s overtime

This is relevant for people who work rotating schedules. A nurse working 12-hour shifts might hit the 40-hour threshold mid-week depending on how the workweek is defined.

What If Your Employer Doesn’t Pay Overtime?

If you suspect your employer is violating FLSA overtime rules, here’s what you can do:

1. Check your classification. Are you properly classified as non-exempt? Check your job duties against the DOL’s exemption criteria.

2. Document your hours. Keep a personal log of hours worked, including overtime. Save your pay stubs.

3. Contact the DOL. You can file a complaint with the Wage and Hour Division. The DOL investigates for free — you don’t need a lawyer.

4. Know your time limits. You generally have 2-3 years to file an FLSA claim (up to 3 years for willful violations).

Realistically, many workers who are denied overtime don’t push back because they’re afraid of losing their jobs. But the DOL protects you from retaliation, and successful claims often result in backpay covering multiple years.

Bottom Line

Overtime pay under the FLSA is straightforward in theory — 1.5x after 40 hours — but state laws, bonus calculations, and the new 2026 salary threshold rules add layers of complexity. Know your regular rate, understand your state’s rules, and use tools to verify your pay stubs each week.

If you want to see exactly what your overtime should be, head to our overtime pay calculator. It accounts for state-specific rules, bonus calculations, and gives you a detailed breakdown of what you’re owed. The few minutes it takes could literally put hundreds of dollars back in your pocket.