Rules about overtime
In most jobs, when you work more than 44 hours in a week, the hours above 44 are overtime hours.
You earn 1½ times your hourly pay for each hour of overtime that you work. For example, if your hourly wage is $20, your overtime rate would be $30 an hour.
The rules about overtime pay may not apply to you if you agreed in writing to different rules. If you belong to a union, the union can make an agreement on your behalf.
Your employer might ask you to sign an overtime agreement with rules that are different than what is in the ESA.
Your employer could ask you to agree to:
- take paid time off instead of getting overtime pay
- “average” your overtime hours
Agreeing to paid time off
You can agree to get overtime as paid time off instead of overtime pay. This means you get 1½ hours of time off for every hour of overtime that you work.
You must get this time off within 3 months of the week in which you earn it. This does not apply if you sign an agreement with your employer to get the time off within 12 months.
Agreeing to “average” your overtime
You can agree to have your overtime “averaged”.
This means that you get overtime pay on the average number of overtime hours you work during a period of 2 to 4 weeks. You do not get it on the actual number of overtime hours you work each week.
Employers use averaging agreements to save money. If you sign an averaging agreement, you get less for your overtime.
An averaging agreement must:
- be in writing, signed, and dated, and
- give the date when it ends.
The agreement can last for 2 years but not any longer.
Overtime pay with or without an agreement
In most jobs, the hours you work over 44 hours a week are overtime hours.
The following examples compare how much overtime pay you get when you have an averaging agreement and when you do not. The examples are based on:
- having a regular work week of 35 hours
- working 180 hours in 4 weeks
No averaging agreement
In this example, your total number of overtime hours for the 4 weeks is 22.
| 4-week period |
Hours worked |
Overtime hours (over 44) |
| Week 1 | 35 | 0 |
| Week 2 | 50 | 6 |
| Week 3 | 60 | 16 |
| Week 4 | 35 | 0 |
| Total | 180 | 22 hours |
With an averaging agreement
To find out your average overtime hours in the 4-week period:
- take the total number of hours you worked in the 4 weeks,
- divide by 4, and
- subtract the 44 hours you must work in a week to qualify for overtime.
This gives you the “average” number of overtime hours in a week. Then multiply this by 4 to get the average number of overtime hours for the 4-week period.
In this example, your average number of overtime hours for the 4 weeks is 4.
| 4-week period |
Hours worked |
Figuring out overtime hours |
| Week 1 | 35 | 180 hours ÷ 4 weeks = 45 hours 45 hours – 44 hours = 1 hour 1 hour x 4 weeks = 4 hours |
| Week 2 | 50 | |
| Week 3 | 60 | |
| Week 4 | 35 | |
| Total | 180 | 4 hours |
Ending an averaging agreement
To cancel this type of agreement, you must tell your employer in writing 2 weeks before you want the agreement to end.
Averaging agreements cannot last more than 2 years. When an agreement ends, you do not have to renew it. But to cancel it before it ends, you and your employer must agree.
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