The FLSA rule in one paragraph
The Fair Labor Standards Act requires covered, non-exempt employees to receive at least 1.5× their 'regular rate' for hours worked beyond 40 in a workweek. The workweek is a fixed 168-hour period defined by the employer — not the calendar week, and not per-day under federal law. The regular rate isn't just your base hourly rate: it generally includes shift differentials and non-discretionary bonuses divided across the hours, which is why payroll sometimes computes OT at slightly more than base × 1.5.
Who does not get time and a half
- Exempt salaried employees (executive, administrative, professional, computer and outside-sales exemptions at the salary thresholds).
- Certain commissioned retail and auto-sales roles, some transportation workers, and seasonal amusement employees.
- Independent contractors — though misclassification claims are common and often succeed.
Where state law adds more
California requires daily overtime (1.5× past 8 hours/day, 2× past 12) and seventh-consecutive-day premiums. Colorado, Nevada and a few others add daily rules; Alaska requires daily OT past 8. Everywhere else, the federal 40-hour weekly trigger is the whole story.
How the 2026 tax rule changes the take-home
From 2026, the half-time premium (the 'half' in time-and-a-half) is deductible from federal income tax up to $12,500/year. At $20/hour, each OT hour's $10 premium is deductible; the $20 base portion and all FICA/state tax are unchanged. Our calculators split every OT payment into these pieces so you can see the deduction's effect.