Overtime Pay
Compensation at an increased rate for hours worked beyond the standard workweek, typically 1.5 times the regular wage.
Plain English
Overtime pay is extra compensation that employers must provide when employees work more than a certain number of hours per week, usually 40 hours. Under federal law, overtime must be paid at one and a half times the employee's regular hourly rate (called "time and a half"). Some states require overtime for hours over 8 in a single day or for the seventh consecutive day worked. Certain employees, like managers and salaried professionals, may be exempt from overtime requirements. Employers who fail to pay overtime owe back wages plus penalties.
Example
A warehouse worker regularly works 45 hours per week at $15 per hour. For the five hours over 40, the employer must pay $22.50 per hour (1.5 times $15) instead of the regular $15. If the employer fails to do so, the worker can sue for unpaid overtime.
Used in a sentence
“The company was ordered to pay overtime pay to all hourly employees who worked more than 40 hours per week.”
How Overtime Pay differs by state
Overtime Pay can apply differently depending on the state. Click a state to see local specifics.
Related terms
This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.