How overtime pay actually works
The federal baseline is simple: nonexempt workers earn at least 1.5 times their regular rate for hours over 40 in a workweek. The details (who counts as nonexempt, what states add on top) are where paychecks go wrong. This is general information, not legal advice.
The FLSA baseline: time-and-a-half after 40
Under the federal Fair Labor Standards Act, nonexempt employees must be paid at least 1.5x their regular rate for every hour beyond 40 in a workweek. At $22 an hour, overtime hours pay $33. There is no federal double-time requirement.
Exempt vs nonexempt, in plain language
Nonexempt means overtime-eligible. Exempt means not eligible, and it requires more than a salary: the job must also pass duties tests (executive, administrative, professional, and similar categories) and meet a salary threshold. A salaried job title alone does not make you exempt.
States can be more generous, never less
California requires overtime after 8 hours in a single day and double time after 12 hours in a day, regardless of the weekly total. Several other states have daily overtime or seventh-day rules. Your state’s rule applies whenever it pays more than the federal one.
There is no special "overtime tax"
Overtime earnings are taxed at the same income tax rates as regular wages. A large check can have more withheld up front because withholding tables annualize each check, but that evens out at filing. Working overtime never leaves you with less than not working it.
These are gross numbers
Everything here is before taxes and deductions. For an estimate of take-home pay in your state, use the paycheck calculator.
