How Overtime Pay Works
Overtime is not just hourly rate times 1.5. The regular rate can include non-discretionary bonuses and premiums, and it is calculated per workweek; hours up to 40 are straight time and excess hours are usually 1.5x. Exempt employees and state law add exceptions.
Regular rate
Regular rate = total non-exempt pay divided by total hours, not just base hourly.
Non-discretionary bonuses and shift premiums usually must be included.
Calculation
Up to 40 hours: hours times regular rate.
Above 40: excess hours times regular rate times 1.5.
States such as California have daily overtime and double-time rules; follow local law.
FAQ
Can salaried employees get overtime?
Non-exempt salaried employees can; the duties test and state law matter, not salary alone.
Can comp time replace overtime?
Generally not in the private sector; public agencies have exceptions and state law varies.