Overtime Pay: How It Works and How to Calculate It (2026)

Everything about overtime pay in 2026. Learn federal and state overtime laws, calculation formulas, exemptions, and how overtime appears on your pay stub.

Overtime pay is one of the most important — and most misunderstood — aspects of payroll. Whether you're an employee checking your pay stub or an employer calculating payroll, understanding overtime rules can save you money and keep you compliant.

The Fair Labor Standards Act (FLSA) sets the federal baseline:

Some states have stricter overtime rules than federal law:

Published by the BestPaystubGen Editorial Team, covering paystubs, payroll compliance, federal and state taxes, W-2 forms, 1099 contractors, FICA, gross vs net pay, and IRS regulations updated for 2026.

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