The default for most U.S. hourly jobs

Federal 40-hour overtime

One workweek, one threshold: hours over 40 are paid at 1.5× the regular rate. Multiple worksites at the same employer combine; different employers do not.

Workweek40 hours
0–40hOver 40h → 1.5×

The workweek is a fixed 7-day period set by the employer; it does not have to start on Monday.

How it works

Count all hours worked for one employer in a fixed 7-day workweek. The first 40 hours are regular; each hour after 40 is overtime at 1.5×.

The tiers

0–40 hours
Regular rate
Over 40 hours
1.5× regular rate

Example

5 days × 10 hours = 50 hours → 40 regular + 10 overtime.

At $20/hour: 40 × $20 + 10 × $20 × 1.5 = $1,100 before taxes.

Who it applies to

For nonexempt employees covered by the Fair Labor Standards Act (FLSA). The FLSA is the federal floor; a state or contract may be more generous.

Good to know

  • Overtime is calculated per employer. Hours from a second job never combine into one 40-hour threshold.
  • Tips and bonuses are shown separately in Paycheck Correct and are not included in the overtime base in v1.

Sources

Last reviewed October 20, 2026. This is a simplified summary, not legal, tax, or payroll advice.

Other supported rules

Need to check a paycheck? Use the rule that matches your pay stub, record the hours, and compare the gross pay. If the result looks wrong, bring the hours and the estimate to your employer or payroll provider.