Pay at 1.5x the regular rate (or 2x in some states) for hours worked beyond statutory thresholds — typically 40 hours per workweek under the FLSA.
Overtime is the pay non-exempt employees are entitled to for hours worked beyond statutory thresholds. Under the FLSA, that is 40 hours in a fixed seven-day workweek, paid at 1.5x the regular rate. Several states impose stricter rules: California, Alaska, and Nevada require daily overtime after 8 hours in a workday; California adds double-time after 12 hours and after 8 hours on the seventh consecutive day worked.
The 'regular rate' is more than just the hourly rate. It must include all non-discretionary pay: bonuses tied to specific performance metrics, commissions, shift differentials, and longevity pay. Calculating the regular rate correctly is the most common audit finding — many employers under-include bonuses and end up owing back pay.
Overtime can be limited or prohibited as a matter of policy (no unauthorized overtime), but if a non-exempt employee works overtime, it must be paid even if not pre-authorized. The remedy for unauthorized overtime is discipline, not non-payment. Modern time-tracking and payroll systems calculate FLSA overtime, weighted-average overtime for blended-rate workers, and state daily overtime automatically.
Our time-tracking system flags any non-exempt employee approaching the 40-hour weekly threshold and routes manager approval before any overtime is incurred.
Peoplifi unifies HR, payroll, time tracking, and performance into one modern platform — so concepts like Overtime stay handled, not stuck in spreadsheets.
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