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Overtime Pay Explained: How Time-and-a-Half Works in 2026

Updated September 2026 · 4 min read

The 1.5× rule

Under the federal Fair Labor Standards Act (FLSA), non-exempt employees earn 1.5× their regular hourly rate for hours over 40 in a week. At $20/hour, overtime pays $30/hour.

What overtime is really worth per year

Base wage5 OT hrs/week10 OT hrs/week
$15/hr+$5,850/yr+$11,700/yr
$20/hr+$7,800/yr+$15,600/yr
$25/hr+$9,750/yr+$19,500/yr
$30/hr+$11,700/yr+$23,400/yr

Who qualifies?

Most hourly workers qualify. Salaried workers earning under the FLSA threshold (raised in recent years — check current DOL rules) may also qualify. Some states (California, Alaska) require daily overtime after 8 hours.

Add overtime hours in our paycheck calculator to see your true annual pay.