HomeGlossaryOvertime Pay (OT)
Earning Terms

Overtime Pay (OT)

Pay at 1.5x your regular rate for hours worked beyond 40 per week (FLSA requirement).

Common paystub code: OT / OVT

Full Definition

Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5 times their regular hourly rate for every hour worked beyond 40 in a workweek. For example, if your regular rate is $20/hr, your overtime rate is $30/hr. California additionally requires time-and-a-half after 8 hours in a single day and double-time after 12 hours. Some employers voluntarily pay double-time for holidays.

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