Overtime Pay Law and Legal Definition

Overtime pay refers to the compensation paid to an employee by an employer for the work done beyond normal working hours. Overtime pay depends upon the overtime work done by an employee. Any employee covered by the Fair Labor Standards Act is entitled to receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay.

The following is an example of a federal statute defining “overtime pay” :

Pursuant to 5 USCS § 8114 (1) "overtime pay" means pay for hours of service in excess of a statutory or other basic workweek or other basic unit of worktime, as observed by the employing establishment.