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Overtime Pay in 2026: FLSA Rules, Rates & Calculators

Everything employers and employees need to know about overtime — who qualifies, how to calculate it correctly, and what state laws add on top of federal FLSA requirements.

Overtime Calculators

Calculate exact overtime pay for any scenario — hourly, blended rate, shift differential, or salaried non-exempt.

Overtime Guides

In-depth coverage of FLSA rules, exemptions, blended rates, and how overtime interacts with bonuses.

How FLSA Overtime Works in 2026

The Fair Labor Standards Act requires employers to pay non-exempt employees at least 1.5× their regular rate of pay for all hours worked over 40 in a workweek. A workweek is any fixed, recurring 168-hour period — it does not need to align with the calendar week.

1.5×Federal OT multiplier
40 hrsFederal weekly threshold
$684/wkSalary exemption threshold
8 statesWith daily OT rules

Who Must Receive Overtime Pay?

Non-exempt employees must receive overtime — this includes most hourly workers and salaried employees earning under $684/week ($35,568/year). Being paid a salary alone does not create exempt status.

Exempt employees are not entitled to overtime under FLSA. The three most common exemptions require both (a) a salary of at least $684/week AND (b) job duties that qualify:

How to Calculate Overtime Pay

Standard hourly rate

Multiply overtime hours by 1.5× the regular rate. Example: 50 hours at $20/hr = (40 × $20) + (10 × $30) = $800 + $300 = $1,100 gross before taxes.

Blended rate (multiple pay rates in one week)

Calculate the weighted average regular rate: total straight-time earnings ÷ total hours worked. Then pay 0.5× that blended rate for each overtime hour (straight-time is already covered). Use the overtime calculator to handle blended rates automatically.

State Overtime Laws That Exceed FLSA

Where state law is more generous than federal, the employee gets the better deal:

Frequently Asked Questions

What is the federal overtime rate for 2026?

The federal overtime rate is 1.5 times the employee's regular rate of pay for all hours worked over 40 in a single workweek. Some states (California, Alaska, Nevada, Colorado) additionally require daily overtime for hours worked beyond 8 in a single day.

Do salaried employees get overtime?

Salaried employees earning less than $684/week ($35,568/year) must receive overtime if their job duties do not meet an FLSA exemption test. Earning a salary is not sufficient for exemption — duties must also qualify as executive, administrative, or professional under FLSA criteria.

How is overtime calculated for employees with two different pay rates?

Use the blended (weighted average) regular rate method: add all straight-time earnings for the week across both rates, divide by total hours worked to get the blended regular rate, then pay 0.5x that blended rate for each overtime hour (since straight-time for all hours is already included in the total).

Can employers give comp time instead of overtime pay?

Private sector employers generally cannot substitute comp time for overtime pay under FLSA — employees must receive 1.5x cash payment. State and local government employers may offer comp time under specific conditions defined in FLSA Section 7(o), with a 1.5 hour accrual for each overtime hour.

Is overtime calculated weekly or over the full pay period?

Always weekly under FLSA, never averaged across multiple weeks. If you work 50 hours in week 1 and 30 hours in week 2 of a bi-weekly pay period, you are owed overtime for week 1 regardless of the two-week average being exactly 40 hours.