How US employee overtime and double-time pay work

Last updated: August 10, 2026

Applies to: US W-2 employees. Overtime laws generally don't apply to independent contractors, and workers in Canada or outside the US follow their local overtime rules.

Summary: Under the federal Fair Labor Standards Act (FLSA), covered, nonexempt employees must generally receive overtime pay for hours worked over 40 in a single workweek. Overtime must be paid at no less than 1.5 times the employee’s regular rate of pay. Some state laws provide additional protections, such as overtime after a certain number of hours in a day or double-time pay.

Note: Overtime rules apply to non-exempt W-2 employees. If you are an independent contractor, overtime laws generally do not apply to you. If you are unsure which you are, see Am I a W-2 employee or an Independent Contractor.

The federal rule: 1.5x over 40 hours a week

Under the federal Fair Labor Standards Act (FLSA), covered non-exempt employees must be paid at least one and a half times their regular rate for hours worked over 40 in a workweek. Authoritative source: Overtime Pay (U.S. Department of Labor).

For example, if your regular rate is $20/hour and you work 45 hours in a week, the 5 hours over 40 are paid at $30/hour (1.5 × $20).

State rules can add more

State overtime requirements may provide greater protections than federal law. When both federal and state overtime laws apply, you are generally entitled to the rule that provides the greater benefit. Depending on where you work, this may include overtime based on hours worked in a day as well as hours worked in a workweek. The specific requirements are determined by the laws of the state where the work is performed.

A well-known example is California, which requires:

1.5x for hours over 8 in a day (and over 40 in a week), and

2x (double time) for hours over 12 in a day.

Other states may have different daily thresholds, and many follow the federal weekly-only standard. To confirm the rule for your state, check your state's labor or workforce agency, or start with the Department of Labor's state labor offices directory.

Double time

Double time means 2x your regular rate. It is not required under federal law — it comes from certain state rules (like California's over-12-hours-in-a-day rule) or in some cases, from an agreement your employer has in place. If double time applies to you, it will appear as its own line on your pay stub.

"Pyramiding" — you are not paid overtime twice on the same hour

If your state has both daily and weekly overtime, the same hour is not counted toward both. Once an hour is paid at an overtime rate under one rule, it is not counted again toward the other. You are paid overtime once, at the higher applicable rate, for any given hour. This prevents double-counting and is the standard way overtime is calculated.

When you work at more than one rate

If you work in more than one role at different pay rates during the same week, your overtime may be calculated using a blended rate (also called a weighted average). Instead of using a single rate, your employer averages your rates across the hours you worked that week, then applies the overtime premium to that average. This is a normal, legally required method — it does not mean you are being underpaid. Your pay stub will show the resulting overtime amount.

How to check your overtime

Open your Paystub under Paychecks and look at the Earnings section.
3.

Confirm that hours beyond the applicable threshold appear on an Overtime (and, if applicable, Double time) line at the higher rate.

If your overtime looks missing or wrong, the first thing to check is whether all your hours were submitted and approved. See My paycheck is short or missing hours — what to do. Pay corrections are handled by Ascen (support@ascen.com).

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