Certified Payroll Professional Practice Exam 2026 - Free CPP Practice Questions and Study Guide

Overtime pay under the Fair Labor Standards Act (FLSA) is defined specifically as compensation for hours worked in excess of 40 hours in a workweek at a rate not less than one and a half times the employee's regular rate of pay. This standard has been established to ensure that employees are fairly compensated for the additional hours they work beyond the typical full-time workweek.

The rationale for this definition stems from the intent of the FLSA to protect workers from exploitation and to encourage employers to spread out work among more employees rather than requiring excessive hours from fewer employees. By providing a higher wage rate for overtime work, the law promotes a balance of work and personal life for employees.

This definition means that options suggesting different thresholds for overtime, flat pay for extra hours, or pay solely for holiday hours do not align with the established FLSA guidelines. Understanding this definition is crucial for compliance in payroll processing and for employee rights regarding their compensation.