What is Overtime pay?
Under the federal 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. Some states have additional daily overtime rules.
Whether an employee is 'exempt' (not owed overtime) depends on their salary level and job duties, not just their title. Misapplying exemptions is a frequent source of wage claims.
In practice
A non-exempt employee earning $20/hour works 45 hours in a week. They earn $800 for the first 40 hours plus $150 for 5 overtime hours at $30 — $950 total.