Overtime Pay

Overtime pay refers to the additional compensation an employee is entitled to receive when working more than the standard 40 hours per week. Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5 times their regular hourly rate for hours worked beyond 40 in a given workweek. For example, if an employee’s regular hourly rate is $15, their overtime pay would be $22.50 per hour for any hours worked over 40. Overtime laws vary by jurisdiction, and some employees, particularly those who are salaried and classified as exempt, may not be eligible for overtime. Employers must comply with these laws to ensure fair compensation for employees working beyond the standard workweek.