# Overtime Pay

*Everyday Money — Finicade finance glossary*

Overtime pay is the premium rate — commonly 1.5× — owed for hours beyond a legal threshold, typically 40 per week in the US. The critical distinction is exempt versus non-exempt: salaried employees above a defined salary level in certain job categories can be legally excluded, which is why 'salaried' and 'no overtime' get conflated. Two things people get wrong: overtime is generally calculated weekly rather than daily, and it isn't taxed at a penalty rate — a bigger check just triggers higher withholding on that check.

**Also known as:** time and a half, overtime rate

**Related terms:** [Gross Income](https://finicade.com/glossary/gross-income), [Pay Stub](https://finicade.com/glossary/pay-stub), [Salary](https://finicade.com/glossary/salary), [Minimum Wage](https://finicade.com/glossary/minimum-wage)

Source: https://finicade.com/glossary/overtime-pay