FLSA overtime rules explained

Everhour supports controlled team time workflows, while FLSA overtime calculations still depend on covered nonexempt status and weekly hours.

What will your overtime pay be?

Calculate regular and overtime earnings based on your hours and rate. Supports standard time-and-a-half and double-time multipliers.

Total hours including overtime

$

Typically 40h/week

Total pay this period
Regular pay$1,000.00
Overtime pay$300.00
OT hours8h

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How federal overtime pay is calculated

What this calculation answers

The calculation answers whether a covered nonexempt employee has worked more than 40 hours in one fixed FLSA workweek and, if so, what overtime pay is due under the United States federal baseline. It does not decide every wage issue on its own. Exempt status, the regular rate, state law, contracts, and employer policy can change the final payroll result.

The FLSA workweek is a fixed and regularly recurring period of 168 hours, made of seven consecutive 24-hour periods. It can start on any day and at any hour, but each workweek stands alone. Hours from two or more workweeks may not be averaged to avoid overtime for covered nonexempt employees.

Apply the weekly formula

Under the FLSA, covered nonexempt employees must receive overtime pay for hours worked in excess of 40 in a workweek at not less than 1.5 times the employee's regular rate of pay. For a single hourly rate, the basic formula is regular pay for up to 40 hours plus overtime hours multiplied by regular rate multiplied by 1.5.

Example: a covered nonexempt employee works 49 hours in one fixed FLSA workweek at a $25 regular rate. Regular pay is 40 × $25 = $1,000. Overtime pay is 9 × $25 × 1.5 = $337.50. Total gross pay for the week is $1,337.50 before taxes, deductions, or any more protective state rule.

Check status and pay inputs

The most common mistake is starting with hours and skipping eligibility. Covered nonexempt status controls the federal overtime calculation. The standard executive, administrative, and professional exemptions described in DOL Fact Sheet #17A require both job-duties tests and salary-basis pay of at least $684 per week. Job titles alone do not determine exempt status.

The regular rate also needs care. It is calculated by dividing total compensation for the workweek, excluding statutory exclusions, by total hours actually worked in that workweek. A base hourly wage works for simple cases, but bonuses, multiple rates, and other included compensation can change the regular rate before the 1.5 multiplier is applied.

Calculator check or managed workflow

A one-off calculation is enough when you need to verify a simple week: one covered nonexempt employee, one regular rate, one fixed workweek, and no state, policy, or contract exception. Use it to check whether a pay stub's overtime line roughly matches the federal baseline before looking deeper.

A managed workflow is needed when overtime decisions repeat across a team. Approved time records, locked periods, manager review, personal tracking limits, and clean payroll handoff reduce disputes over which hours were worked and when they were approved. Everhour Team Management supports those controls so overtime review starts from a governed time record, not a reconstructed spreadsheet.

This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.

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Frequently Asked Questions

What is the FLSA workweek for overtime?

The FLSA workweek is a fixed, regularly recurring 168-hour period made of seven consecutive 24-hour periods. It may begin on any day and at any hour. For covered nonexempt employees, overtime is calculated separately for each workweek, so one short week cannot offset a later week with more than 40 worked hours.

How is the regular rate calculated?

The regular rate is total compensation for the workweek, excluding statutory exclusions, divided by total hours actually worked in that workweek. For a simple hourly employee with one rate and no extra included pay, the hourly rate usually supplies the regular rate. Multiple rates, certain bonuses, and commissions require a regular-rate calculation before overtime is priced.

Does federal law require extra pay for holiday work?

The FLSA does not require overtime pay merely because work occurs on Saturdays, Sundays, holidays, or regular days of rest. The federal trigger is hours worked over 40 in the workweek unless another law or agreement applies. Holiday or vacation pay for time not worked is generally set by agreement, employer policy, state law, or a union contract.

Which exemption detail should be checked first?

Check both duties and pay basis before treating an employee as exempt. The standard executive, administrative, and professional exemptions require qualifying job duties and salary-basis pay of at least $684 per week. The computer-employee exemption can use that salary basis or $27.63 per hour. Outside-sales employees qualify under duties and location tests, with no salary-level requirement.

When do state rules change the federal calculation?

State rules matter when they give the employee a greater benefit or more generous rights than the federal baseline. The FLSA sets the federal floor for covered nonexempt employees, not the ceiling. If an employee is covered by both federal and state wage laws, the rule providing the greater benefit controls the payroll result.

How does Everhour Team Management support overtime review?

Everhour Team Management supports overtime review with approval workflows, locked time editing, admin time correction, personal tracking limits, roles, project assignments, and team groups. Managers can review submitted time before payroll use and prevent regular members from changing approved records after the review period closes.

How does Everhour show overtime hours for a team?

Everhour Overtimes can calculate overtime hours from daily or weekly limits set by admins. The Team Hours dashboard includes an overtime column, with 1.5x overtime and 2x double overtime shown separately, so managers can review overtime patterns before payroll calculations are finalized.

Control overtime before payroll

Use approved time records, locked periods, and manager review before running payroll. Everhour Team Management keeps overtime checks tied to governed team workflows and cleaner payroll handoff.

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