Overtime can be the fastest way to boost a paycheck — but the rules about who gets it, how it's calculated, and how it's taxed cause a lot of confusion. Here's the plain-English version.
The 40-hour rule
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5× their regular rate— "time-and-a-half" — for every hour worked beyond 40 in a workweek. So at $20/hour, overtime hours pay $30 each.
Who actually qualifies
Overtime covers non-exempt workers — typically hourly employees. Salaried employees in genuine executive, administrative, or professional roles above a salary threshold are usually exemptand don't earn overtime. Some states (like California) add daily overtime rules and higher thresholds, so check your state — state law wins when it's more generous than federal.
Double time and other multipliers
Time-and-a-half (1.5×) is the federal floor. Some employers pay double time (2×) for holidays, Sundays, or hours past a daily limit — but outside a few state rules, that's a contract perk, not a federal requirement.
Is overtime taxed more? No.
This is the big myth. Overtime is taxed exactly like your regular wages — same income tax brackets, same 7.65% FICA. What can happen is that a larger one-week paycheck gets withheld at a higher rate, because payroll systems often estimate your annual tax as if every week looked like that big one. The extra withholding comes back at tax time if too much was taken. Your true tax depends on your annual marginal rate, not on the fact that it was overtime.
Estimate your overtime pay
The overtime calculator turns your hourly rate and hours into weekly and annual gross pay. To see take-home after tax, add the annual figure to the paycheck calculator.