How does overtime law work in the US?

Under the Fair Labor Standards Act (FLSA), covered non-exempt employees must be paid at least 1.5 times their regular rate of pay for all hours worked over 40 in a single workweek. The workweek is a fixed recurring period of 7 consecutive days — employers choose when it starts but cannot change it to avoid overtime obligations.

The regular rate includes all remuneration — base pay, shift differentials, production bonuses, and non-discretionary bonuses — divided by total hours worked. Purely discretionary bonuses are excluded. Comp time (time off instead of overtime pay) is generally not permitted in the private sector.

Some states have stronger overtime rules: California requires daily overtime (1.5× after 8 hours in a day, double time after 12 hours, and double time for the 7th consecutive day). Alaska, Nevada, and Puerto Rico also have daily overtime rules. Federal law sets the minimum floor — state law applies where it is more protective.