If you're an hourly employee working more than 40 hours in a week, federal law requires your employer to pay you more for those extra hours. Not just the same rate — more. It's one of the foundational worker protections in U.S. employment law, and understanding exactly how it works can help you confirm you're being paid correctly, plan your earnings, and understand when something looks off on your paycheck.
Overtime for Salaried Non-Exempt Employees
Many people assume that being on salary means no overtime. That's not accurate. Salary describes how you're paid — a fixed amount per period regardless of hours. Exemption determines whether overtime applies. Many salaried employees are still non-exempt and must receive overtime pay.
For a non-exempt salaried employee, calculating the regular rate requires converting the weekly salary to an hourly equivalent. Divide the weekly salary by 40 hours (the assumed regular workweek). A $680 weekly salary produces a regular rate of $17.00 per hour. Overtime hours are then paid at $25.50 per hour ($17.00 × 1.5).
Some employers use a different method called the fluctuating workweek method (allowed under specific conditions), where the regular rate changes each week based on total hours worked — producing lower effective overtime rates. This is legal under certain conditions but requires clear advance agreement and that the employee genuinely receives a fixed salary regardless of how few hours are worked.
Related Calculators
- Hourly Pay Calculator
- Salary Calculator
- Take-Home Pay Calculator