A 45-hour week at $15 an hour should put $712.50 in your pocket, not $675. The extra $37.50 isn’t a bonus. It’s what the law has required since October 24, 1938, when the Fair Labor Standards Act took effect and drew a line at 40 hours.
Where the 40-hour limit comes from
Before 1938, no federal rule stopped an employer from scheduling 60 or 70 hours at the base wage. The FLSA, signed by Franklin D. Roosevelt during the Great Depression, changed that arithmetic. The logic was blunt: make extra hours expensive, and businesses would spread the work across more people instead of burning out a smaller crew.
The law created a fixed workweek of 168 hours, seven consecutive 24-hour days. An employer picks when that week starts. Monday to Sunday is common. Wednesday to Tuesday is just as legal. What matters is that the period stays fixed and recurring.
Key legislative shifts
- 1961: Amendments broadened coverage to more workers.
- 1966: Public schools, hospitals, nursing homes, laundries, and construction came under the rules.
- 1974: Most federal, state, and local government employees gained protection.
- 1985: Garcia v. San Antonio MTA confirmed state and local governments must comply with FLSA overtime provisions.
- 2004: Major revision of white-collar exemption regulations.
- 2019: Salary level for exempt employees rose to $684 per week, effective January 2020.
- 2024: The Department of Labor raised the level to $844 per week as of July 2024. A second increase, to $1,128 per week, was scheduled for January 2025. Check the DOL Wage and Hour Division website for the current figure and any legal challenges.
How time and a half works
Time and a half means 1.5 times your standard hourly rate. It is the federal minimum for overtime. Some states demand more in specific situations, and union contracts sometimes negotiate higher multipliers. But the baseline is non-negotiable: hours past 40 in a week get the 1.5x rate.
$15 an hour, 40 to 60 hours
Forty hours at $15.00 returns $600.00. No overtime.
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $15.00 | $600.00 |
| Premium pay | 0 | $22.50 | $0.00 |
| Gross pay | 40 | $600.00 |
Add five hours. Those five cross the 40-hour mark.
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $15.00 | $600.00 |
| Premium pay | 5 | $22.50 | $112.50 |
| Gross pay | 45 | $712.50 |
Ten hours over.
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $15.00 | $600.00 |
| Premium pay | 10 | $22.50 | $225.00 |
| Gross pay | 50 | $825.00 |
Twenty hours over. The pattern holds.
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $15.00 | $600.00 |
| Premium pay | 20 | $22.50 | $450.00 |
| Gross pay | 60 | $1,050.00 |
$20 an hour, 40 to 60 hours
At $20.00, the premium rate is $30.00.
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $20.00 | $800.00 |
| Premium pay | 0 | $30.00 | $0.00 |
| Gross pay | 40 | $800.00 |
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $20.00 | $800.00 |
| Premium pay | 5 | $30.00 | $150.00 |
| Gross pay | 45 | $950.00 |
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $20.00 | $800.00 |
| Premium pay | 10 | $30.00 | $300.00 |
| Gross pay | 50 | $1,100.00 |
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $20.00 | $800.00 |
| Premium pay | 20 | $30.00 | $600.00 |
| Gross pay | 60 | $1,400.00 |
$25 an hour, 40 to 60 hours
At $25.00, premium pay is $37.50.
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $25.00 | $1,000.00 |
| Premium pay | 0 | $37.50 | $0.00 |
| Gross pay | 40 | $1,000.00 |
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $25.00 | $1,000.00 |
| Premium pay | 5 | $37.50 | $187.50 |
| Gross pay | 45 | $1,187.50 |
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $25.00 | $1,000.00 |
| Premium pay | 10 | $37.50 | $375.00 |
| Gross pay | 50 | $1,375.00 |
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $25.00 | $1,000.00 |
| Premium pay | 20 | $37.50 | $750.00 |
| Gross pay | 60 | $1,750.00 |
$35 an hour, 40 to 60 hours
At $35.00, premium pay is $52.50.
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $35.00 | $1,400.00 |
| Premium pay | 0 | $52.50 | $0.00 |
| Gross pay | 40 | $1,400.00 |
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $35.00 | $1,400.00 |
| Premium pay | 5 | $52.50 | $262.50 |
| Gross pay | 45 | $1,662.50 |
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $35.00 | $1,400.00 |
| Premium pay | 10 | $52.50 | $525.00 |
| Gross pay | 50 | $1,925.00 |
| Pay category | Hours | Rate | Amount |
|---|---|---|---|
| Base pay | 40 | $35.00 | $1,400.00 |
| Premium pay | 20 | $52.50 | $1,050.00 |
| Gross pay | 60 | $2,450.00 |
Every table tells the same story. The first 40 hours stay at the base wage. Only the hours beyond that get the 1.5x multiplier.
Federal rules versus state rules
The FLSA sets a floor. States build on top of it.
What the national standard does not require
No daily overtime. You can work 12 hours on a Tuesday and, under the FLSA alone, earn nothing extra if your weekly total stays at 40 or below.
No double time. The federal government never mandates 2x pay, no matter how many hours you log.
No premium for weekends or holidays. Overtime is about total hours worked, not which day you worked them.
Where states go further
California adds daily overtime at 1.5x for hours beyond 8 in a day and double time for hours beyond 12. The seventh consecutive day triggers 1.5x for the first 8 hours and 2x after that.
Alaska requires daily overtime at 1.5x past 8 hours, plus weekly overtime past 40.
Nevada mandates daily overtime past 8 hours for employees earning below a level tied to the state minimum wage. A 2024 ballot measure altered coverage for some workers. Check the Nevada Labor Commissioner’s site for the current level and exemptions.
Colorado requires daily overtime only past 12 hours at 1.5x, plus the standard weekly rule.
Oregon applies weekly overtime past 40 hours. Manufacturing establishments also owe daily overtime past 10 hours.
New York follows the 40-hour weekly standard. Hospitality staff may qualify for “spread of hours” pay: an extra hour at minimum wage when the workday spans more than 10 hours.
When state and national rules conflict, the provision more favourable to the employee applies.
Who gets overtime and who does not
The FLSA splits the workforce into two groups.
Non-exempt employees
Entitled to overtime. Most hourly staff fall here. So do many salaried staff whose pay or duties fail the exemption tests.
Exempt employees
Not entitled to overtime. A salary alone does not make someone exempt. Three tests must all be met.
Salary basis test. The person receives a predetermined amount not subject to reduction based on hours worked or work quality.
Salary level test. The weekly pay meets a minimum set by the Department of Labor. As of July 2024, that level is $844 per week. It changes. Confirm the current number at the DOL Wage and Hour Division site.
Duties test. Primary job duties must be executive, administrative, professional, computer-related, or outside sales. Blue-collar staff, first responders, and manual labourers are always non-exempt, regardless of salary.
A salaried employee who fails any one of these tests is non-exempt and owed overtime. Misclassification is widespread. The duties test is where most disputes land.
What counts toward the overtime rate
The FLSA uses a term of art: “regular rate of pay.” It is not simply the base hourly wage.
Included
Hourly wages, salaries, piece rates, commissions, non-discretionary bonuses, and shift differentials all count. If you work at multiple rates, a weighted average applies.
Excluded
Discretionary bonuses, gifts, paid time off, expense reimbursements, and benefit plan contributions stay out of the calculation.
Overtime is figured on gross pay before taxes and deductions. Tips, commissions, and non-discretionary bonuses can push the regular rate higher, which in turn raises the overtime rate.
Misconceptions that cost money
“Salaried means no overtime.” Wrong. Only exempt salaried employees lose overtime rights. The three-part test decides. Plenty of salaried staff qualify.
“Overtime is taxed more.” It is not. Overtime is ordinary income taxed at the same marginal rate as everything else. A paycheck with overtime may have more tax withheld because withholding tables treat that larger check as if it represents every pay period. Your actual tax bill at year end does not change.
“Double time is federal law.” It is not. No federal double-time rule exists. Double time appears only in certain state laws, union contracts, and employer policies.
“Holiday and weekend work automatically pays overtime.” It does not. Overtime turns on total hours worked, not the calendar. Holiday pay, vacation pay, and sick pay do not count as hours worked toward the 40-hour mark either.
“Part-time staff cannot earn overtime.” They can. Any non-exempt employee who crosses the applicable mark, daily or weekly, is owed overtime.
“Working through lunch does not count.” It does. Time worked during an unpaid meal break counts toward the 40-hour total. Unpaid breaks require the employee to be completely relieved of duties.
“Comp time instead of cash is fine.” Not in the private sector. The FLSA requires cash payment. Some public-sector employees may receive compensatory time off at 1.5x under specific conditions.
“Independent contractors get overtime.” They do not. FLSA protections apply only to employees. Misclassification as a contractor is a major enforcement issue.
How the rules apply across borders
Remote work across state lines
The law of the state where the work is physically performed generally applies. An employee in State A working remotely for an employer in State B follows State A’s overtime rules. Multi-state workers may be subject to the most protective standard or the rules of the state where the majority of work occurs.
US and Canada
Canadian provinces set their own overtime rules. Ontario requires 1.5x after 44 hours per week. British Columbia requires 1.5x after 8 hours daily and 40 hours weekly. Quebec requires 1.5x after 40 hours per week. A US resident working remotely from Canada should confirm which provincial rules apply with the province’s employment standards office.
US and Mexico
Mexican law mandates overtime at 2x the standard rate after 48 hours per week for day shifts, 45 hours for night shifts, and 42 hours for mixed shifts. Cross-border commuters generally follow the law of the country where the work is performed.
Industries with special rules
Trucking and logistics operate under Department of Transportation hours-of-service rules that interact with overtime requirements. Airlines and railroads are governed by the Railway Labor Act, not the FLSA. Confirm current applicability with the relevant agency.
Practical patterns
Who runs the numbers
Hourly staff verifying pay stubs. Salaried non-exempt employees checking whether overtime was included. Union members confirming contract compliance. Nurses and healthcare staff with shift differentials. Construction crews with variable schedules. Retail staff during November and December. Restaurant staff with tipped wages. Small business owners without automated payroll. HR departments estimating labour costs. Employment lawyers evaluating wage claims. Accountants preparing payroll.
When overtime spikes
Retail: November through December. Accounting: January through April. Construction: summer in northern states. Agriculture: harvest seasons that vary by crop and region. Hospitality: summer and holiday peaks. Healthcare: year-round, with a bump during flu season from October through March.
What to check on every pay stub
Confirm the workweek definition your employer uses. Count only hours actually worked; paid time off does not count toward the 40-hour mark. Verify the regular rate includes all non-discretionary bonuses and shift differentials. If you work in a state with daily overtime, check that daily and weekly calculations are both applied and that you receive the higher amount. When in doubt, run the numbers yourself. The arithmetic is straightforward. The stakes are not.