Overtime
Who is entitled to overtime?
Non-exempt employees of employers the FLSA covers, which is most hourly workers. Employees who meet an exemption, usually by earning a salary of at least $684 a week and doing executive, administrative or professional work, are not.
Can my employer give me comp time instead of overtime pay?
Not in the private sector. Private employers must pay overtime as wages, on the regular payday for the period in which the week ends. Time off in place of overtime pay is allowed only for some public-sector employees.
Does overtime have to be approved to be paid?
No. If your employer knows or has reason to know you are working, those hours count, approved or not. An employer can discipline someone for unapproved overtime but still has to pay for it.
Is the overtime rate based on the minimum wage?
No. It is based on your own regular rate. At the federal minimum wage of $7.25 an hour, overtime is $10.875; at $25.00 it is $37.50.
PTO and vacation
Does federal law require paid vacation?
No. No federal law requires paid vacation or paid holidays. Where they exist, they come from state law, an employer policy or a contract.
Is PTO paid out when I quit?
It depends on your state and your employer’s policy. California, Colorado, Illinois, Louisiana, Massachusetts, Montana, Nebraska, North Dakota require earned vacation to be paid when a job ends; most other states leave it to the written policy.
Is PTO the same as vacation for payout rules?
Often, yes. Several states treat a PTO bank you can use for any purpose like vacation, so the payout rules apply to it. Leave that can be used only for sickness usually is not paid out.
Overtime and tax
Is overtime taxed at a higher rate?
No. Overtime is taxed as ordinary wages. A big overtime check can have more withheld because payroll software treats it as if you earned that much every pay period, but the tax is settled on your return.
How does the no tax on overtime deduction work?
For 2025 through 2028, you can deduct the premium half of FLSA overtime, up to $12,500 a year ($25,000 joint), reduced once income passes $150,000 ($300,000 joint). It lowers federal income tax, not Social Security or Medicare.
Your figures
Is what I type into a calculator sent anywhere?
No. Calculations run in your browser, so rates, hours, balances and income are worked out on your device and nothing you type is sent to a server while you calculate. Your inputs are written into the page address so you can share a result; that address reaches our host only when the link is opened.
Do the calculators work without an internet connection?
Once a page has loaded, yes. The rules and the math are part of the page, so changing a figure needs no connection. Opening another page does.