Compensation Glossary

Overtime

Each hour worked in a workweek in excess of the maximum hours applicable. This usually means hours worked in excess of 40 in a workweek. Under the Fair Labor Standards Act of 1938 (FLSA), there is no limit to the number of hours that an employee may work, either daily or weekly. It simply requires that overtime pay must be paid at a rate of not less than 1½ times the nonexempt employee’s regular rate of pay for hours worked over the maximum in a workweek.