Overtime Calculator 2026
Calculate regular pay, overtime pay, and total earnings based on federal FLSA rules — with weekly schedule, annual projections & tax estimates.
FICA: Social Security 6.2% (wage base $176,100) · Medicare 1.45%. Consult your HR department or a tax professional for exact figures.
Overtime Calculator USA: Formuls, Rules, and State Laws
Overtime calculator for United States payroll computes overtime wages using the federal overtime standard established by the Fair Labor Standards Act. The calculator determines total weekly earnings by applying the statutory 1.5× overtime rate to hours worked beyond 40 hours in a single workweek for non-exempt employees.Â
Payroll calculation tool with automatic overtime rate adjustment accepts any hourly wage, estimates overtime income taxes, and demonstrates earnings scenarios such as \$20/hour and \$18.50/hour pay rates. Current eligibility rules follow guidance from the U.S. Department of Labor with the active $684 per week ($35,568 annual) salary threshold for white-collar exemptions under the 2019 federal rule.Â
Legal context for 2026 reflects the federal court decision that invalidated the proposed \$844 weekly exemption threshold, confirming \$684 as the operative salary benchmark for overtime eligibility.
What is Overtime Pay Under the FLSA?
Overtime pay is compensation at 1.5 times the regular rate of pay, owed to non-exempt employees for every hour worked beyond 40 in a single workweek under the Fair Labor Standards Act. The FLSA does not require overtime for nights, weekends, or holidays unless those hours push the total weekly count above 40.
The FLSA defines the workweek as any fixed 7 consecutive 24-hour periods. Employers set the workweek, it does not need to run Monday through Sunday. A workweek running Wednesday through Tuesday is fully valid under FLSA. Overtime is calculated separately for each workweek, never averaged across 2 or more weeks.
3 core FLSA overtime facts for 2026:Â
(1) The threshold is 40 hours per workweek.Â
(2) The minimum overtime rate is 1.5 times the regular rate of pay.
(3) The FLSA sets no maximum on total weekly hours, it only requires a premium rate for non-exempt employees once the 40-hour threshold is crossed.
How Do I Calculate My Overtime?
Overtime is calculated in 3 steps: identify the regular rate of pay, multiply it by 1.5 to get the overtime rate, then multiply the overtime rate by the number of overtime hours worked. Total weekly pay equals regular hours at the regular rate plus overtime hours at 1.5 times the regular rate.
Overtime Rate = Regular Hourly Rate × 1.5
Overtime Pay  = Overtime Rate × Overtime Hours
Total Weekly Pay = (40 × Regular Rate) + (OT Hours × OT Rate)
Step-by-Step OT Computation – FLSA Standard Method
- Step 1: Identify your regular rate of pay, the hourly wage stated in your employment agreement.
- Step 2: Multiply the regular rate by 1.5 to get the overtime (OT) rate.
- Step 3: Count every hour in the workweek that exceeds 40.
- Step 4: Multiply the OT rate by the number of overtime hours to get total overtime pay.
- Step 5: Add regular pay (40 hours × regular rate) plus overtime pay to get total weekly gross pay.
Worked example at $15/hr with 5 overtime hours:
- Regular rate: $15.00/hr
- Overtime rate: $15.00 × 1.5 = $22.50/hr
- Regular pay: 40 × $15.00 = $600.00
- Overtime pay: 5 × $22.50 = $112.50
- Total weekly gross: $600.00 + $112.50 = $712.50
What is OT for $20 an Hour?
Overtime pay at $20 per hour is $30.00 per hour, 1.5 times the $20 regular rate. A worker earning $20/hr who works 45 hours in a week earns $800 in regular pay plus $150 in overtime pay, producing a total weekly gross of $950. Working 5 overtime hours every week for 52 weeks adds $7,800 to annual gross income.
$20/hr Overtime Pay Table – All Common OT Hour Scenarios
OT Hours/Week | OT Rate | OT Pay/Week | Total Weekly Gross | Annual OT Added |
1 hr | $30.00 | $30.00 | $830.00 | $1,560/yr |
2 hrs | $30.00 | $60.00 | $860.00 | $3,120/yr |
3 hrs | $30.00 | $90.00 | $890.00 | $4,680/yr |
5 hrs | $30.00 | $150.00 | $950.00 | $7,800/yr |
8 hrs | $30.00 | $240.00 | $1,040.00 | $12,480/yr |
10 hrs | $30.00 | $300.00 | $1,100.00 | $15,600/yr |
15 hrs | $30.00 | $450.00 | $1,250.00 | $23,400/yr |
20 hrs | $30.00 | $600.00 | $1,400.00 | $31,200/yr |
Annual base pay at $20/hr (no OT): $41,600 (2,080 hours × $20). With 5 overtime hours every week for 52 weeks, annual gross rises to $49,400, an 18.8% increase in total compensation.
What is $18.50 Overtime Pay?
Overtime pay at $18.50 per hour is $27.75 per hour, the $18.50 regular rate multiplied by 1.5. A worker earning $18.50/hr who works 45 hours in a week earns $740 in regular pay plus $138.75 in overtime pay, for a total weekly gross of $878.75. Five overtime hours every week for 52 weeks adds $7,215 to annual gross income.
$18.50/hr Overtime Pay Table
OT Hours/Week | OT Rate | OT Pay/Week | Total Weekly Gross | Annual OT Added |
1 hr | $27.75 | $27.75 | $767.75 | $1,443/yr |
2 hrs | $27.75 | $55.50 | $795.50 | $2,886/yr |
3 hrs | $27.75 | $83.25 | $823.25 | $4,329/yr |
5 hrs | $27.75 | $138.75 | $878.75 | $7,215/yr |
8 hrs | $27.75 | $222.00 | $962.00 | $11,544/yr |
10 hrs | $27.75 | $277.50 | $1,017.50 | $14,430/yr |
15 hrs | $27.75 | $416.25 | $1,156.25 | $21,645/yr |
20 hrs | $27.75 | $555.00 | $1,295.00 | $28,860/yr |
Annual base pay at $18.50/hr (no OT): $38,480. With 5 overtime hours per week for 52 weeks, annual gross rises to $45,695 — a $7,215 increase.
OT Rate Calculation Reference Table – 20 Common US Hourly Wages
The overtime rate for any hourly wage equals the regular rate multiplied by 1.5. This reference table covers 20 common US hourly wages from $10/hr to $60/hr, showing the time-and-a-half overtime rate, the weekly pay for a 45-hour workweek (40 regular + 5 OT), and the annual overtime income added for 5 OT hours per week.
Regular Rate | OT Rate (×1.5) | 5-OT-Hr Weekly Pay | Annual OT Added | Annual Base Pay |
$10.00 | $15.00 | $475.00 | $3,900/yr | $20,800 |
$12.00 | $18.00 | $570.00 | $4,680/yr | $24,960 |
$14.00 | $21.00 | $665.00 | $5,460/yr | $29,120 |
$15.00 | $22.50 | $712.50 | $5,850/yr | $31,200 |
$16.00 | $24.00 | $760.00 | $6,240/yr | $33,280 |
$17.00 | $25.50 | $807.50 | $6,630/yr | $35,360 |
$18.00 | $27.00 | $855.00 | $7,020/yr | $37,440 |
$18.50 | $27.75 | $878.75 | $7,215/yr | $38,480 |
$19.00 | $28.50 | $902.50 | $7,410/yr | $39,520 |
$20.00 | $30.00 | $950.00 | $7,800/yr | $41,600 |
$22.00 | $33.00 | $1,045.00 | $8,580/yr | $45,760 |
$25.00 | $37.50 | $1,187.50 | $9,750/yr | $52,000 |
$28.00 | $42.00 | $1,330.00 | $10,920/yr | $58,240 |
$30.00 | $45.00 | $1,425.00 | $11,700/yr | $62,400 |
$35.00 | $52.50 | $1,662.50 | $13,650/yr | $72,800 |
$40.00 | $60.00 | $1,900.00 | $15,600/yr | $83,200 |
$45.00 | $67.50 | $2,137.50 | $17,550/yr | $93,600 |
$50.00 | $75.00 | $2,375.00 | $19,500/yr | $104,000 |
$55.00 | $82.50 | $2,612.50 | $21,450/yr | $114,400 |
$60.00 | $90.00 | $2,850.00 | $23,400/yr | $124,800 |
Annual OT Added = 5 OT hours/week × 52 weeks × OT rate. Annual Base Pay = 2,080 hours × regular rate. All figures are gross pay before taxes.
Who Qualifies for Overtime Pay? FLSA Exempt vs. Non-Exempt 2026
Non-exempt employees qualify for FLSA overtime at 1.5 times their regular rate for every hour beyond 40 per workweek. Exempt employees do not receive FLSA overtime. The 3 primary white-collar exemptions, executive, administrative, and professional, each require the employee to meet both a salary basis test (minimum $684/week in 2026) and a specific duties test.
2026 FLSA Salary Threshold: $684/Week
The FLSA salary threshold for white-collar overtime exemptions is $684 per week ($35,568 per year) as of 2026. This is the minimum weekly salary an employer must pay for an employee to be classified as exempt. The DOL’s 2024 rule, which would have raised this to $844/week effective January 1, 2025, was vacated by the US District Court for the Eastern District of Texas in November 2024. The 2019 rule’s $684/week threshold remains operative.
A salary alone does not create exempt status. Every exempt employee must satisfy both the salary test and a qualifying duties test. Failing either test means the employee is non-exempt and eligible for overtime.
FLSA White-Collar Exemption Requirements – 2026
Exemption | Salary/Pay Test | Duties Test (Abbreviated) |
Executive | ≥$684/week, salary basis | Primary duty: manages the enterprise or a recognized dept; directs 2+ FTE employees; has hire/fire authority |
Administrative | ≥$684/week, salary or fee basis | Primary duty: office/non-manual work related to management or general business operations; exercises independent judgment on significant matters |
Professional (Learned) | ≥$684/week, salary or fee basis | Primary duty: advanced knowledge in a field of science or learning, typically acquired through prolonged specialized study |
Professional (Creative) | ≥$684/week, salary or fee basis | Primary duty: invention, imagination, originality, or talent in a recognized artistic or creative field |
Computer Employee | $684/week salary OR $27.63/hr | Systems analyst, programmer, software engineer; specific duties enumerated in FLSA §13(a)(17) |
Outside Sales | No salary minimum required | Primary duty: making sales or obtaining orders away from employer’s principal place of business |
Highly Compensated | ≥$107,432/yr total annual comp | Customarily and regularly performs at least 1 exempt executive, administrative, or professional duty |
12 Job Categories Specifically Exempt From FLSA Overtime
The FLSA lists 29 categories of workers exempt from overtime. The 12 most common non-white-collar exemptions in 2026 are:
- Farmworkers on small farms (fewer than 500 man-days of agricultural labor in the prior calendar year)
- Commissioned retail or service employees earning more than 50% of pay from commissions and earning at least 1.5× the federal minimum wage
- Motor carrier employees (drivers, loaders, mechanics) on vehicles over 10,000 lb GVWR, subject to DOT Hours-of-Service rules
- Railroad employees covered by the Railway Labor Act
- Airline employees covered by the Railway Labor Act
- Employees of seasonal recreational establishments operating fewer than 7 months per year
- Taxicab drivers
- Live-in domestic service employees
- Seamen on US-flagged vessels
- Local delivery drivers paid on a trip-rate or similar basis
- Newspaper delivery workers
- Certain theater employees at venues with fewer than 500,000 paid admissions per year
How Do You Calculate Overtime for Salaried Non-Exempt Employees?
Salaried non-exempt employees calculate overtime using the regular rate method: divide weekly salary by 40 to get the regular rate, then pay 1.5 times that rate for each overtime hour. The fluctuating workweek method, allowed in some states, divides weekly salary by total hours worked, then pays only 0.5 times that rate for overtime hours since straight-time is already covered by the salary.
Method 1: Regular Rate Method (Most Common)
The regular rate method is the standard approach for salaried non-exempt employees. Divide the fixed weekly salary by 40 hours to establish the regular rate, then pay 1.5 times that rate for each hour above 40.
Example: A salaried non-exempt employee earns $800/week and works 47 hours.
- Regular rate: $800 ÷ 40 = $20.00/hr
- Overtime rate: $20.00 × 1.5 = $30.00/hr
- Overtime hours: 47 − 40 = 7 hours
- Overtime pay: 7 × $30.00 = $210.00
- Total weekly pay: $800.00 + $210.00 = $1,010.00
Method 2: Fluctuating Workweek (FWW) Method
The fluctuating workweek method applies when the employee’s hours vary week to week and both parties have a clear mutual understanding that the salary covers all hours worked. Under FWW, the employer divides the weekly salary by total hours worked (including overtime) to determine the regular rate for that specific week, then pays only 0.5 times that regular rate as the overtime premium, not 1.5×, because the straight-time portion is already embedded in the salary.
Example: Same $800/week salary, 47 hours worked.
- Regular rate: $800 ÷ 47 = $17.02/hr
- Overtime premium (0.5× only): $17.02 × 0.5 = $8.51/hr
- Overtime premium pay: 7 hours × $8.51 = $59.57
- Total weekly pay: $800.00 + $59.57 = $859.57
The FWW method produces lower total pay in high-OT weeks compared to the regular rate method. California prohibits the FWW method entirely. Pennsylvania restricted it in 2021 for its state overtime rules.
Salaried Non-Exempt vs Salaried Exempt: Side-by-Side
Factor | Salaried Non-Exempt | Salaried Exempt |
FLSA overtime required? | Yes — 1.5× for hrs >40/week | No |
Salary basis? | Yes (but not automatically exempt) | Yes — minimum $684/week |
Duties test required? | No | Yes — must meet specific duties test |
Pay docked for partial days absent? | Yes — non-exempt rules apply | No — improper docking destroys exemption |
Example roles | Paralegals, admin assistants below $684/wk | Managers, licensed professionals, executives |
How Do You Calculate Overtime for Employees With Multiple Pay Rates?
Employees who work at 2 different pay rates in the same workweek calculate overtime using a blended regular rate — the weighted average of all wages earned divided by total hours worked. The blended rate replaces individual rates for overtime calculation purposes. The overtime premium equals 0.5 times the blended rate multiplied by overtime hours.
Blended Regular Rate = Total Straight-Time Wages ÷ Total Hours Worked
OT Premium = 0.5 × Blended Rate × OT Hours
Example: An employee works 30 hours at $16/hr (Role A) and 15 hours at $22/hr (Role B) in the same workweek — 45 total hours, 5 overtime hours.
- Straight-time wages: (30 × $16) + (15 × $22) = $480 + $330 = $810
- Total hours: 45
- Blended regular rate: $810 ÷ 45 = $18.00/hr
- OT premium (0.5× blended): $18.00 × 0.5 = $9.00/hr
- OT premium pay: 5 × $9.00 = $45.00
- Total weekly pay: $810.00 + $45.00 = $855.00
The 0.5× multiplier is used because the straight-time portion of every hour — including the overtime hours — is already captured in the $810 straight-time wage total. Adding the 0.5× premium brings the effective overtime rate to the required 1.5×.
How is Overtime Pay Taxed in 2026?
Overtime pay is taxed as ordinary income at the same federal income tax rates as regular wages. No separate or higher tax rate applies to overtime hours. However, overtime income increases total annual gross income, which raises taxable income and pushes more dollars into higher federal brackets. FICA taxes of 7.65% (Social Security 6.2% + Medicare 1.45%) apply to all overtime pay.
Federal Income Tax Withholding on Overtime Paychecks
Employers withhold federal income tax from overtime pay using the IRS wage bracket or percentage method tables from Publication 15. For a weekly payroll, the IRS method applies to total weekly wages, including overtime, not just the overtime portion. A week with overtime produces a larger total check, so the marginal withholding rate on those additional dollars reflects the 2026 federal tax bracket that week’s income falls into.
This is not a permanent tax increase. Withholding in a high-OT week is simply front-loaded at a higher marginal rate. If annual withholding exceeds annual tax liability, the worker receives a refund at filing.
Annual Tax Impact of Regular Overtime – 2026 Estimates (Single Filer)
Regular Rate | OT Hrs/Wk | Annual Gross | Est. Federal Tax | Est. Net (Fed only) |
$18.50/hr | 5 hrs | $45,695 | ~$3,718 | ~$41,977 |
$20.00/hr | 5 hrs | $49,400 | ~$4,589 | ~$44,811 |
$20.00/hr | 10 hrs | $57,200 | ~$6,769 | ~$50,431 |
$25.00/hr | 5 hrs | $61,750 | ~$9,259 | ~$52,491 |
$30.00/hr | 5 hrs | $74,100 | ~$12,406 | ~$61,694 |
$40.00/hr | 5 hrs | $99,100 | ~$18,406 | ~$80,694 |
Estimates use the 2025 federal standard deduction ($15,750 single) and 2025 federal brackets. Subtract FICA (7.65% of gross) for full take-home estimate. Consult the USATaxCalculator.com paycheck calculator for a state-by-state net pay figure.
Overtime and the Additional Medicare Tax
Employees earning above $200,000 in total wages in a calendar year (single filers) owe the Additional Medicare Tax of 0.9% on wages above that threshold. Overtime income counts toward this $200,000 threshold. Employers begin withholding the Additional Medicare Tax when wages paid to a single employee in the calendar year exceed $200,000.
Does Overtime Ever Push You Into a Higher Tax Bracket?
Overtime income increases taxable income, which can push some dollars into the next federal bracket, but only the dollars above the bracket cutoff are taxed at the higher rate. Earning overtime never reduces take-home pay from hours already worked.Â
Example: A single filer in the 12% bracket (2025 taxable income up to $47,150) who earns enough overtime to push taxable income above $47,150 pays 22% only on the dollars above $47,150, not on all income. Every overtime dollar still results in positive net take-home pay.
Do State Overtime Laws Differ From the FLSA?
Several states impose overtime rules that exceed FLSA requirements. California requires overtime for hours beyond 8 in a single workday in addition to the FLSA’s 40-hour weekly threshold, and double time for hours beyond 12 in a day. Alaska, Nevada, and Colorado also have daily overtime thresholds. Employers in these states must apply whichever rule state or federal provides the greater benefit to the employee.
State | OT Trigger (Daily) | Double Time Trigger | Weekly Threshold |
Federal FLSA | None (weekly only) | Not required | 40 hrs/week |
California | After 8 hrs/day | After 12 hrs/day; 7th consecutive day (all hrs) | 40 hrs/week |
Alaska | After 8 hrs/day | Not state-required | 40 hrs/week |
Nevada | After 8 hrs/day (if wage ≤1.5× state min wage) | Not state-required | 40 hrs/week |
Colorado | After 12 hrs/day | Not state-required | 40 hrs/week |
New York | No daily threshold | Not state-required | 40 hrs/week |
Texas | No daily threshold | Not state-required | 40 hrs/week |
Florida | No daily threshold | Not state-required | 40 hrs/week |
Illinois | No daily threshold | Not state-required | 40 hrs/week |
California Daily OT: Worked Example at $20/hr
California requires OT for hours beyond 8 in a single workday. An employee working a 10-hour day earns 2 California daily overtime hours — even if total weekly hours stay under 40.
- Hours 1–8: $20.00 × 8 = $160.00 (regular time)
- Hours 9–10: $30.00 × 2 = $60.00 (California daily OT at 1.5×)
- Total daily pay: $220.00
- Without California daily OT rule: $200.00 (10 hrs × $20.00)
California daily OT premium: $20.00 extra for a 10-hour day at $20/hr compared to a state with no daily OT threshold.
What is Double Time Pay and When Does It Apply?
Double time pay is compensation at 2 times the regular rate of pay. Federal FLSA does not require double time under any circumstance. California state law mandates double time for hours worked beyond 12 in a single workday and for all hours on the 7th consecutive workday in a workweek. Some employers provide double time voluntarily through collective bargaining agreements.
Regular Rate | OT Rate (1.5×) | Double Time (2×) | Double Time Applies When |
$15.00 | $22.50 | $30.00 | California: hours 13+ in a workday, or 7th consecutive workday |
$18.50 | $27.75 | $37.00 | California: hours 13+ in a workday, or 7th consecutive workday |
$20.00 | $30.00 | $40.00 | California: hours 13+ in a workday, or 7th consecutive workday |
$25.00 | $37.50 | $50.00 | California: hours 13+ in a workday, or 7th consecutive workday |
$30.00 | $45.00 | $60.00 | California: hours 13+ in a workday, or 7th consecutive workday |
$40.00 | $60.00 | $80.00 | California: hours 13+ in a workday, or 7th consecutive workday |
How is Overtime Calculated for Tipped Employees?
Tipped employees calculate overtime based on the full minimum wage, not the reduced cash wage. Under the FLSA, the overtime base for a tipped worker is 1.5 times the full \$7.25 federal minimum wage, minus the tip credit.Â
The resulting minimum cash overtime wage owed is $10.875 minus $5.12 = $5.755 per overtime hour. Tips received during overtime hours can still offset the difference, but only up to the $5.12 tip credit cap.
Federal tipped minimum wage: $2.13/hr cash wage. Federal tip credit: up to $5.12/hr (the gap between $7.25 full minimum and $2.13 cash minimum).
Tipped employee overtime minimum calculation under FLSA:
- Full minimum wage OT base: $7.25 × 1.5 = $10.875/hr
- Maximum tip credit during OT: $5.12/hr
- Minimum cash overtime wage: $10.875 − $5.12 = $5.755/hr
Many states set higher tipped minimum wages or prohibit the tip credit entirely. In California (2026), the tip credit is banned — tipped employees receive the full $16.50 state minimum wage. Their overtime rate is $16.50 × 1.5 = $24.75/hr minimum, paid fully in cash with no tip offset.
How to Use the Overtime Calculator on USATaxCalculator.com
Use the overtime calculator on this page by entering 4 fields: regular hourly rate, standard weekly hours, overtime hours worked this week, and overtime multiplier. The calculator returns regular pay, overtime pay, total weekly gross pay, annualized gross if the overtime continues, and after-tax net pay estimate for the selected state.
- Step 1: Enter your regular hourly rate, the base wage before any overtime premium.
- Step 2: Enter standard weekly hours, typically 40 for full-time FLSA non-exempt employees.
- Step 3: Enter overtime hours worked this workweek, the hours beyond the standard threshold.
- Step 4: Confirm the overtime multiplier, 1.5 for standard time-and-a-half, 2.0 for California double time, or a custom rate from a collective bargaining agreement.
- Step 5: Select your state, California, Alaska, Nevada, and Colorado apply daily OT thresholds automatically.
- Step 6: Review results, regular pay, OT pay, total weekly gross, annualized total, and estimated after-tax net pay.
More Free Calculators on USATaxCalculator.com
USATaxCalculator.com provides 9 additional tools that pair directly with the overtime calculator for a complete earnings and tax picture:
- Hourly to Salary Calculator – Convert any hourly rate with or without overtime to an annual salary equivalent
- AARP Tax Calculator – Estimate your retirement income easily with this updated and free tool
- US Income Tax Calculator – Calculate total federal income tax for any annual gross income including overtime income
- New York Income Calculator – Quickly compute your income tax if living in New York
- Bonus Tax Calculator – Calculate your taxes on the bonus you have received
FAQs About Overtime Calculator 2026
Q1. How do I calculate my overtime pay?
Overtime pay is calculated in 3 steps. First, identify your regular hourly rate. Second, multiply it by 1.5 to get the overtime rate. Third, multiply the overtime rate by the number of hours worked beyond 40 in the workweek. Add that result to your regular pay (40 hours × regular rate) to get total weekly gross pay. Example at $20/hr with 5 OT hours: regular pay $800 + overtime pay $150 (5 × $30) = total weekly gross $950. Use the overtime calculator on this page to compute any rate and any number of OT hours instantly.
Q2. What is the overtime rate for $20 an hour?
The overtime rate for $20 per hour is $30.00 per hour, $20 multiplied by 1.5. A worker at $20/hr who works 45 hours in a week earns $800 in regular pay plus $150 in overtime pay, totaling $950 for the week. Working 5 overtime hours every week for the full 52-week year adds $7,800 to annual gross income, raising total yearly earnings from $41,600 to $49,400.
Q3. What is $18.50 overtime pay?
The overtime rate for $18.50 per hour is $27.75 per hour ($18.50 × 1.5). A worker at $18.50/hr who works 45 hours in a workweek earns $740 in regular pay plus $138.75 in overtime pay, a total weekly gross of $878.75. Working 5 overtime hours every week for 52 weeks adds $7,215 to annual income, raising yearly gross from $38,480 to $45,695.
Q4. How do you calculate OT pay for salaried employees?
Salaried non-exempt employees calculate overtime using the regular rate method: divide the weekly salary by 40 to get the regular rate, then multiply by 1.5 to get the overtime rate, then multiply by overtime hours. Example: a salaried employee earning $800/week who works 47 hours earns a regular rate of $20/hr, an overtime rate of $30/hr, and $210 in overtime pay (7 × $30), total weekly pay $1,010. Salaried employees earning below $684/week cannot be classified as exempt and must receive this overtime calculation every week they exceed 40 hours.
Q5. What is the FLSA overtime salary threshold in 2026?
The FLSA salary threshold for white-collar overtime exemptions is $684 per week ($35,568 per year) in 2026. This threshold was set by the DOL’s 2019 final rule. The DOL’s 2024 rule that would have raised this to $844/week on January 1, 2025, was vacated by the US District Court for the Eastern District of Texas in November 2024. Any salaried employee earning below $684/week cannot qualify as exempt under the executive, administrative, or professional exemptions, they remain entitled to FLSA overtime pay for hours worked beyond 40 per workweek.
Q6. Is overtime pay taxed differently than regular wages?
Overtime pay is not taxed at a special or higher rate. The IRS applies the same progressive federal income tax brackets to overtime income as to regular wages. Employers withhold federal tax on a week’s total wages, including overtime, using the standard IRS withholding tables from Publication 15. A week with heavy overtime generates a larger paycheck and therefore higher withholding for that week, because more dollars fall into the higher marginal bracket on that week’s total. This does not mean overtime is punished, each overtime dollar still produces positive net take-home. Working overtime never results in lower total take-home pay than not working overtime.
Q7. Can an employer refuse to pay FLSA overtime?
An employer covered by the FLSA cannot legally refuse to pay overtime to a non-exempt employee who works more than 40 hours in a workweek. Willful FLSA violations expose the employer to liability for all unpaid back wages, an equal amount in liquidated damages, plus attorney’s fees and court costs. The statute of limitations for FLSA overtime claims is 2 years, extended to 3 years for willful violations. Employees denied FLSA overtime can file a complaint with the DOL Wage and Hour Division at dol.gov or file a private lawsuit in federal court. An employer may lawfully discipline or terminate an employee for working unauthorized overtime, but must still pay for every hour actually worked, including the OT premium.
Q8. Does California have different overtime rules than the FLSA?
California requires overtime pay for hours worked beyond 8 in a single workday, not just for hours beyond 40 in a week. California also requires double time (2× the regular rate) for hours beyond 12 in a workday and for all hours on the 7th consecutive workday of a workweek. A California worker at $20/hr who works a 10-hour day earns $160 for hours 1–8 and $60 for hours 9–10 at the $30 OT rate, total $220 versus $200 under FLSA alone. California also prohibits the fluctuating workweek method and the tip credit, setting stricter protections than federal law in both areas.
Q9. How much does overtime affect annual income and tax bracket?
Overtime raises annual gross income, which determines federal tax bracket placement. A single filer earning $41,600 at $20/hr (no overtime) has taxable income of $25,850 after the 2025 standard deduction of $15,750, firmly in the 12% bracket. Adding 5 weekly overtime hours raises annual gross to $49,400 and taxable income to $33,650, still in the 12% bracket. Adding 10 weekly overtime hours raises annual gross to $57,200 and taxable income to $41,450, still in the 12% bracket. The 22% bracket begins at $47,150 of taxable income for 2026 single filers, equivalent to gross earnings of approximately $62,900 after the standard deduction. Regular overtime at $20/hr pushes into the 22% bracket only above about 16 weekly OT hours sustained all year.
Q10. What is the overtime rate for tipped employees?
Tipped employees calculate overtime on the full minimum wage, not the reduced tipped cash wage. Under the FLSA, the minimum overtime cash wage for a tipped worker is $10.875/hr (1.5× the $7.25 federal minimum) minus up to $5.12 in tip credit, producing a minimum of $5.755/hr in cash wages per overtime hour. Tips received during overtime hours can apply toward the tip credit, but the credit cap does not increase during overtime. In California, the tip credit is prohibited, California tipped employees receive the full $16.50 state minimum wage (2026) and their overtime rate is $24.75/hr in cash with no tip offset permitted.
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