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Overtime and your pay package

Updated Nov 4, 2026Clinician review pending

Overtime rules decide what you earn for hours over 40 in a week.

In short

  • Most hourly workers get at least 1.5 times their "regular rate" for hours over 40 in a workweek.[1]
  • The regular rate is your total pay for the week divided by the hours you worked, minus a few kinds of pay the law leaves out.[1]
  • A federal appeals court said per diem tied to hours worked can count toward the regular rate.[2]
What counts in the regular rate

The law says the regular rate includes all pay for your work.[1] Some payments are left out, like real reimbursed business costs, including travel costs.[1]

So your overtime may be more than 1.5 times your taxable hourly rate. It depends on how your package is paid.

Why stipends can matter

In Clarke v. AMN Services, the Ninth Circuit looked at per diem that went down when nurses worked fewer hours.[2] The court said that per diem worked like pay for hours, so it had to be part of the regular rate.[2]

That ruling came from the Ninth Circuit, which covers several western states.[2] Ask your agency how they figure your overtime rate.

What to ask a recruiter
  • What is my overtime rate, and how is it figured?
  • Is my stipend cut if I work fewer hours?
  • Are there state overtime rules where I'll work?

Check the Department of Labor's overtime page for the federal rules.[3]

This guide is general information, not legal advice.

Report a mistake on this page

Sources

  1. Fact Sheet #56A: Overview of the Regular Rate of Pay Under the FLSA — U.S. Department of Labor, Wage and Hour Division. Checked Nov 4, 2026.
  2. Clarke v. AMN Services, LLC, No. 19-55784 (9th Cir. 2021) — U.S. Court of Appeals for the Ninth Circuit. Checked Nov 4, 2026.
  3. Overtime pay — U.S. Department of Labor, Wage and Hour Division. Checked Nov 4, 2026.