How overtime pay works
Under the federal Fair Labor Standards Act (FLSA), most hourly employees must be paid at least 1.5× their regular rate for hours worked beyond 40 in a workweek. This is called time-and-a-half.
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Example
At $20/hour with 5 overtime hours: your overtime rate is $30/hour, so 5 hours of overtime = $150 on top of your $800 regular pay, for $950 that week.
Common mistakes
Overtime is based on a workweek (over 40 hours), not per day, under federal law — though some states like California require daily overtime after 8 hours. Bonuses and shift differentials can also raise your 'regular rate' used for overtime.