What Is Overtime?

Overtime is any time an employee works beyond their standard scheduled hours. It is typically paid at 1.5x or 2x the regular rate to compensate for extended hours.

What is overtime?

Overtime is any time an employee works beyond their standard scheduled hours. It is typically paid at a premium rate (1.5x or 2x the regular hourly rate) to compensate for extended work hours.

What is the overtime rate?

Standard overtime rates are: 1.5x regular rate for hours beyond the standard workday (usually 8 hours) or workweek (usually 40 hours), and 2x for hours worked on rest days or public holidays. Exact rates vary by jurisdiction and employment contract.

How is overtime calculated?

Overtime = (hours worked above threshold) × (regular hourly rate) × (overtime multiplier). Example: employee earns $10/hour and works 45 hours in a week. Regular pay = 40 × $10 = $400. Overtime = 5 × $10 × 1.5 = $75. Total = $475.

Are salaried employees paid overtime?

This depends on jurisdiction and role. Non-exempt salaried employees (typically hourly-equivalent workers) are paid overtime. Exempt employees (typically managers and specialists above a salary threshold) are not.

Can overtime be paid as time off instead of money?

Yes, this is called compensatory time or "comp time". Employees receive equivalent time off instead of overtime pay. Comp time policies must be written and agreed to in advance.