Overtime Records
Overtime pay on a pay stub.
A clear overtime pay stub separates regular and overtime hours, shows the applicable rates and earnings, and keeps current-period and year-to-date totals consistent with verified time records.
Federal overtime in plain language
Under the federal Fair Labor Standards Act, covered, nonexempt employees generally must receive overtime pay for hours worked over 40 in a workweek at not less than one-and-one-half times the employee’s regular rate. Exemptions and special rules can apply.
The workweek is a fixed, recurring period of 168 hours. Hours generally cannot be averaged across two workweeks to avoid overtime. Confirm current rules through the U.S. Department of Labor.
How to display overtime
Show regular hours and earnings separately from overtime hours and earnings. Include each applicable rate, the pay period and pay date. If bonuses, shift differentials or multiple rates affect the regular rate, preserve the supporting calculation in payroll records.
A simplified example is 40 hours at $20 plus 5 overtime hours at $30, producing $950 in gross earnings before taxes and deductions. The correct legal calculation can differ when additional compensation or special rules apply.
Overtime recordkeeping checklist
Reconcile timecards, workweek boundaries, paid and unpaid time, rate changes, bonuses included in the regular rate, overtime hours, gross pay, taxes, deductions, net pay and YTD totals. Keep records required by federal and state law.
The Department of Labor’s recordkeeping fact sheet describes basic records covered employers should maintain. State law may require overtime in additional situations or more detailed wage statements.
Related guides
Continue with hourly pay stub calculations, pay stub deductions and state wage-statement requirements.
Frequently asked questions
Is overtime always time-and-a-half?
That is the general federal standard for covered, nonexempt employees, but the regular-rate calculation and state rules can affect the result.
Can hours be averaged over two weeks?
Generally not under the FLSA; overtime is determined by the established workweek.
Should overtime appear separately?
Separating overtime hours, rate and earnings makes the record easier to verify and may be required.
Reviewed August 26, 2026. General educational information, not legal, tax, accounting or payroll advice. See our editorial standards and responsible-use policy.
Document overtime clearly.
Enter accurate, authorized information and review every figure before generating.