Overtime pay basics: how the 40-hour rule works

The core rule

The Fair Labor Standards Act (FLSA) is the federal law that sets minimum wage and overtime. For most workers it says one simple thing about overtime: if you are non-exempt and you work more than 40 hours in a workweek, every hour past 40 must be paid at least one and a half times your regular rate of pay.

There's no federal cap on how many hours an adult can work, and federal law doesn't require overtime for long days, only for long weeks. A few states go further. California, Alaska and Nevada can require overtime after 8 hours in a day, and Colorado after 12 (see state overtime laws).

What a "workweek" means

Your employer sets a fixed, recurring 168-hour period, such as Sunday 12:00 a.m. through Saturday 11:59 p.m. Each workweek stands alone. That matters because an employer can't average two weeks together. If you work 50 hours one week and 30 the next, you are owed 10 hours of overtime for the first week, even though the two-week total is 80.

What counts as hours worked

Hours worked include all time you are required or allowed to work, not just time on the schedule. Common examples that often go unpaid:

• Opening or closing duties before clocking in or after clocking out
• Answering work calls, texts and emails after hours
• Required meetings, training and some travel between job sites during the day
• Short breaks (generally 5 to 20 minutes), which federal rules treat as paid time
• Waiting time when you are "engaged to wait" and can't use the time for yourself

Bona fide meal periods, usually 30 minutes or more, can be unpaid only if you are completely relieved of duty. Eating at your desk while answering the phone is work. More in our off-the-clock work guide.

Time-and-a-half of what?

Overtime is 1.5 times your regular rate, which can be higher than your base hourly wage. Non-discretionary bonuses, shift differentials and many commissions must be folded in. If you earn $20 an hour plus a $100 weekly production bonus and work 50 hours, your regular rate is $22 and your overtime rate is $33, not $30. See how the regular rate works.

"Comp time" at private companies

A private employer generally can't tell you to take extra time off next week instead of paying overtime this week. Compensatory time in place of overtime pay is allowed for state and local government employees under specific rules, not for private-sector workers.

Who isn't covered

Some workers are "exempt." The most common exemptions are for executive, administrative and professional employees who earn a qualifying salary and perform qualifying duties. Others include outside sales employees and certain computer professionals. Exemptions are narrow, and many people labeled "exempt" don't actually qualify. Try our exempt screener.