How is overtime calculated?

Federal law requires 1.5× regular pay for hours over 40 per week. Some states mandate overtime for hours over 8 per day or double-time for hours over 12 per day. Example: $20/hour regular becomes $30/hour overtime. Calculate weekly overtime by subtracting 40 from total hours worked.

Who is eligible for overtime pay?

Non-exempt employees are eligible for overtime. Generally, hourly workers qualify while salaried employees earning over $35,568 annually in executive, administrative, or professional roles are exempt. Independent contractors don't receive overtime. Check your classification—misclassification is illegal and you may be owed back pay.

Is overtime worth it financially?

Financially, yes—overtime pays 1.5× your rate. However, consider work-life balance, health impacts, and tax brackets. Heavy overtime can push you into higher tax brackets, and excessive work hours lead to burnout. Calculate your after-tax overtime earnings and evaluate if the extra money justifies the time commitment.

Can my employer require overtime?

Yes, employers can generally require overtime as long as they pay properly. However, they cannot require work over legally mandated maximum hours (varies by state). Some industries have specific regulations. Refusing required overtime can result in termination unless you have contract protections or union agreements.