Overtime is a pay premium of 50 percent of the regular rate of pay that is earned by employees on all hours worked beyond 40 hours in a standard workweek. This calculation can vary for individual states, so be sure to check with the local state agency that tracks wage law issues to see if there are variations from the federally mandated rule.

When calculating overtime, the employer does not have to include in the 40 base hours such special hours as vacations, holidays, sick time, or jury duty.

Example. Ahmad Nefret is a welder who works 47 hours during a standard workweek at an hourly wage of $22 per hour. The overtime premium he will be paid is 50 percent of his hourly wage, or $11. The calculation of his total pay is as follows:

Example. Jamie Hildebrandt worked 33 hours during the four-day workweek following Labor Day. Though her employer will pay her for 41 hours worked (eight hours of holiday time plus 33 hours worked), there will be no overtime paid out, since eight of the hours were not actually worked.