Overtime Rules Explained: What You Need to Know About Extra Hours

If you’ve ever worked more than 40 hours in a week, you’ve probably wondered: Am I being paid what I’m owed? That’s where the Fair Labor Standards Act (FLSA) comes in.

This federal law requires most U.S. employees to receive overtime pay, typically at one and a half times their regular rate, for any hours worked beyond 40 in a given workweek.

Simple enough, right? Unfortunately, not every employer follows the rules, and not every worker realizes they’re being shortchanged. That disconnect can lead to major legal and financial consequences, especially for the business.

How Overtime Pay Works (and When It Applies)

If you're covered by the FLSA and not exempt, your employer is legally required to pay you time-and-a-half—that’s 1.5 times your regular hourly rate—for every hour you work over 40 hours in a single workweek.

A quick note on what a “workweek” actually means:

It’s seven consecutive days (or 168 straight hours), not two weeks or the length of your pay period. It can start on any day of the week, but once it’s set, it stays fixed.

You can’t average hours across multiple weeks to avoid paying overtime. Each workweek stands on its own. No shortcuts.

Overtime Isn’t About Weekends or Holidays—It’s About Hours

One of the biggest misconceptions about overtime is that it kicks in automatically on weekends or holidays. However, under the FLSA, that is not the case.

You only earn overtime pay when your total hours exceed 40 in a single workweek, regardless of what days those hours fall on.

For example:

You could work 10 hours on a Sunday and still not qualify for overtime, unless those hours push your weekly total over 40.

What’s Included in Your Regular Rate of Pay?

Your regular rate of pay is more than just your hourly wage—it’s the total compensation you receive for your work, and it’s the basis for calculating overtime.

It typically includes:

• Hourly wages
• Salaries
• Commissions
• Piece-rate pay

But some things don’t count toward the regular rate, including:

• Reimbursed expenses (like mileage or travel costs)
• Overtime premiums (extra pay for overtime hours)
• Holiday or weekend bonuses
• Discretionary bonuses (like a surprise gift card or one-time reward)
• Paid time off (vacation, sick days, holidays)

Understanding what’s included ensures you’re getting the correct overtime rate, especially if your pay includes more than just a base wage.

How Overtime Is Calculated, No Matter How You're Paid

Overtime pay isn’t just for hourly workers. Whether you're paid by the hour, on salary, by the piece, or through commissions, the Fair Labor Standards Act says your average hourly rate for the week is what matters. Here's how to break it down:

Your Regular Rate

To calculate your regular rate, divide your total pay for the week by the total number of hours you worked:

Total pay ÷ total hours worked = regular rate

How to Calculate Overtime

Once you hit 40 hours, you’re owed half your regular rate on top of what you’ve already been paid. That’s because your first 40 hours were already paid at the regular rate.

Overtime = 0.5 × regular rate × overtime hours

Working Multiple Jobs or Rates?

If you work different roles for the same employer at different pay rates during the same week, your overtime is based on a weighted average of your total earnings and hours.

Just add all your pay together, divide by the total hours worked, and use that average to calculate your overtime rate.

What About Non-Cash Perks?

If your employer provides meals, lodging, or other non-cash benefits as part of your compensation, the fair market value of those perks counts toward your regular rate, too. That means they must be factored into your overtime calculations.

Overtime Shortcuts That Don’t Fly Under the Law

Employers sometimes attempt to circumvent overtime rules, whether intentionally or due to a misunderstanding of the law. Here are some of the most common missteps—and why they don’t hold up under the Fair Labor Standards Act (FLSA):

Flat Overtime Payments

A flat $300 bonus for working Sunday overtime? That doesn’t cut it.

The law requires employers to calculate your exact overtime hours and pay 1.5 times your regular rate. A “bonus” can’t replace actual overtime wages.

Fixed Salaries That Ignore Overtime

Even if you’re paid a salary for 45 hours a week, that doesn’t mean overtime goes away.

Your employer still has to break down your hourly rate and pay extra for every hour beyond 40. Salary doesn’t override overtime rules.

Waiving Overtime? Not Allowed

You can’t waive your right to overtime—not in a contract, not verbally, not at all. Overtime is a legal right. No agreement can override that.

“Unauthorized” Overtime Still Counts

If your boss says, “Don’t go over 40 hours,” but still allows it to happen, they’re responsible for paying you. Overtime worked is overtime earned, whether it was approved or not.

The bottom line is, if you’re working more than 40 hours in a workweek and you’re not legally exempt, your employer must pay you 1.5 times your regular rate for those extra hours. No shortcuts. No special rules. And no “we don’t do overtime here” excuses.

Disclaimer: This information is based on fact sheets the DOL provides.

Employer Not Paying What They Owe?

At Morgan & Morgan, we help workers fight back when their time isn’t respected and properly compensated. If you’ve been putting in the hours without the right pay, tell us about your situation by filling out this form. Our employment attorneys might be able to help.