{"id":1664,"date":"2018-01-05T10:02:04","date_gmt":"2018-01-05T15:02:04","guid":{"rendered":"https:\/\/sagestaging.wpengine.com\/en-us\/blog\/?post_type=sage_glossary&p=1664"},"modified":"2026-01-16T08:23:13","modified_gmt":"2026-01-16T13:23:13","slug":"what-is-overtime","status":"publish","type":"sage_glossary","link":"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-overtime\/","title":{"rendered":"What is overtime?"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tGlossary definition<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tWhat is overtime?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t
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\n\t\t\t min read<\/span>\n\t\t\n\t\t\t

Overtime definition<\/span><\/span><\/h2>\n\n\n\n

Overtime refers to any hours worked by an employee that exceed their normally scheduled working hours. While a generalized overtime definition refers simply to those hours worked outside of the standard working schedule, overtime commonly refers concurrently to the employee\u2019s remunerations of such work. The overtime rate of pay varies between companies and by specifics of the overtime, such as the number of overtime hours worked. Standard overtime rates include time and a half and double time.<\/p>\n\n\n\n

How do you calculate overtime pay? <\/span><\/span><\/h2>\n\n\n\n

To calculate hourly overtime rate, multiply normal rate of pay by the company\u2019s overtime rate. To find total overtime wages, simply multiply the amount of overtime hours worked by the calculated rate of overtime.<\/p>\n\n\n\n

\u25cf $10 hourly wage becomes $15 ($10 x 1.5), with time and a half pay.
\n\u25cf An 8-hour day yields $120 (8 hours x $15).<\/p>\n\n\n\n

Is overtime after 8 hours or 40 hours?<\/span><\/span><\/h2>\n\n\n\n

In federal law, overtime applies after 40 hours. An employee working five days a week for eight hours a day is working 40 hours per week. Exceeding 8 hours per day would trigger overtime because their working hours would surpass the 40-hour maximum. Additionally, in some state law, overtime is required for work past 8 hours.<\/p>\n\n\n\n

Do salaried employees get overtime pay?<\/span><\/span><\/h2>\n\n\n\n

Some salaried employees get overtime pay, and some do not. To be exempt from overtime pay, an employee needs to earn more than $47,476 annually. They must be treated as a salaried employee, and must be paid in set portions, at set intervals. Exempt employees also need to do some type of white-collar work consisting of professional duties or administrative tasks.<\/p>\n\n\n\n

Legally, by the Fair Labor Standards Act passed in 1938, any hours worked by an employee which exceed the standard 40-hour work week define overtime hours and are subject to overtime remuneration rates.<\/p>\n\n\n\n

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See Also:<\/h2>\n\n\n\n