Overtime Pay Guide 2026: FLSA Rules, Calculations & State Laws
Complete guide to overtime rules, calculations, and state laws for 2026.
FLSA Overtime Rules
The FLSA requires non-exempt employees receive 1.5× pay for hours over 40/week. The 2024 DOL rule raised the exempt salary threshold to $58,656/yr ($1,128/wk). Employees below this MUST receive OT regardless of duties — affecting ~4 million previously exempt workers.
The Formula
Total = (40 × Rate) + (OT Hours × Rate × 1.5)
At $25/hr + 10 OT: $1,000 + $375 = $1,375/wk. $30/hr + 15 OT: $1,200 + $675 = $1,875. Annual: 10 OT hrs/wk at $25 = $19,500 extra/year.
OT Table
| Base | OT Rate | 10 OT hrs |
|---|---|---|
| $15 | $22.50 | $225 |
| $20 | $30.00 | $300 |
| $25 | $37.50 | $375 |
| $30 | $45.00 | $450 |
| $35 | $52.50 | $525 |
| $40 | $60.00 | $600 |
| $50 | $75.00 | $750 |
State Laws
California: Daily OT after 8 hrs AND weekly after 40. Double time after 12 hrs/day. Alaska: Daily OT after 8 hrs. Colorado: Daily after 12 hrs. Nevada: Daily after 8 if rate < 1.5× minimum. Most states follow federal weekly-only threshold.
Exempt vs Non-Exempt
To be exempt: earn $58,656+/yr salary AND perform executive/admin/professional/computer/sales duties. Common exempt: managers, engineers, lawyers, IT. Common non-exempt: hourly workers, admin assistants under threshold, retail staff.
Double Time
Federal law does NOT require double time. CA mandates 2× for hours over 12/day and over 8 on 7th consecutive day. Some unions and employers provide double time for holidays. At $25/hr: 2× = $50/hr, 8-hr holiday = $400 extra.
Annual Impact
At $25/hr: 5 OT hrs/wk = $9,750 extra/yr ($61,750 total). 10 OT = $19,500 ($71,500). 15 OT = $29,250 ($81,250). Construction workers at $41.66/hr + OT often out-earn salaried $70-80K professionals with no OT eligibility.