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Glossary · Payroll & compliance

Overtime

Extra pay, at least time and a half under federal law, for hours over 40 in a workweek.

Definition

Under the federal Fair Labor Standards Act, non-exempt employees must be paid overtime of at least one and a half times their regular rate for hours worked over 40 in a workweek. Some states go further, for example requiring daily overtime after a set number of hours in a day. Hours at every client the worker is placed at in the same week can count toward the same employer's total. Staffing agencies usually bill overtime hours at a higher rate, so plan schedules and approvals to avoid surprises.

This definition is general information, not legal, tax or financial advice. Rules vary by state and change over time.

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