What does OT stand for on a paycheck? OT stands for “overtime.” On a pay stub, the OT line shows how many overtime hours you worked, the overtime rate and how much you earned for them. Under federal law, non-exempt employees must be paid at least 1.5 times their regular rate for hours over 40 in a workweek.
What does OT mean at work?
OT is shorthand for any hours worked beyond your normal schedule that qualify for extra pay. People say “I’m working OT this weekend” or “OT is approved for the inventory count.”
The Fair Labor Standards Act (FLSA) requires overtime pay for most hourly and some salaried “non-exempt” workers when they work more than 40 hours in a workweek. Some states add daily overtime rules, such as overtime after 8 hours in a day. Your employer may also offer more generous overtime under its own policy.
How OT appears on a pay stub
| Earnings | Hours | Rate | Current |
|---|---|---|---|
| Regular | 40.00 | $20.00 | $800.00 |
| OT | 6.00 | $30.00 | $180.00 |
| Gross pay | $980.00 |
In this example, the regular rate is $20 an hour, so the OT rate is $20 × 1.5 = $30. Six OT hours earn $180. You may also see labels like “OVT,” “OT 1.5” or “DT” for double time.
How overtime is taxed
On your paycheck, overtime is treated like regular wages. Federal income tax, Social Security and Medicare are all withheld from it as usual.
For tax years 2025 through 2028, many workers can claim a federal deduction for part of their overtime when they file their tax return. The deduction covers the “premium” portion of FLSA-required overtime, which is the extra half in time-and-a-half. In the example above, that’s $60 of the $180 (6 hours × $10). The deduction is capped at $12,500 a year ($25,000 for joint filers) and phases out for incomes above $150,000 ($300,000 for joint filers). It lowers federal income tax only, not Social Security or Medicare.
Examples of OT in emails and messages
Manager Slack: “OT is approved for Saturday’s shift, up to 6 hours each.”
Payroll email: “OT hours worked this week will appear on the next paycheck.”
Employee question: “My stub shows 4 OT hours, but I worked 6 over. Can you check my timecard?”
Policy: “All OT must be approved in advance by a supervisor.”
OT vs double time vs comp time vs shift differential
| Term | What it is |
|---|---|
| OT (overtime) | Extra pay, usually 1.5×, for hours over the limit |
| Double time | 2× pay, by employer policy or some state rules |
| Comp time | Time off instead of overtime pay, mainly in the public sector |
| Shift differential | Extra pay for working certain shifts, like nights |
How to check your OT pay correctly
- Know your workweek. Overtime is based on a fixed 7-day period your employer sets, not on calendar months.
- Compare hours with your timecard. OT hours on the stub should match hours over 40 that week.
- Check the rate. OT should be at least 1.5× your regular rate. Bonuses and shift differentials can raise the regular rate used.
- Remember the timing. OT from late in a pay period may show on the next paycheck.
- Know your status. Exempt employees aren’t owed overtime under federal law. See overtime exempt.
- Ask payroll quickly if numbers look wrong, and keep your own record of hours.
Note: paid time off and holidays usually don’t count as hours worked for federal overtime, unless your employer’s policy says otherwise.
Related terms
See more in our Payroll and Tax hub.
FAQ
What does OT mean on a pay stub?
OT means overtime. The line shows your overtime hours, the overtime rate and the total overtime pay for that period.
How is OT pay calculated?
Under federal law, overtime is at least 1.5 times your regular rate for hours over 40 in a workweek. For example, $20 an hour becomes $30 for each overtime hour.
Who gets overtime pay?
Non-exempt employees covered by the FLSA. Many hourly workers are non-exempt. Some salaried workers are too, depending on their pay and duties.
Is overtime taxed more?
No. Overtime is withheld like regular wages, though a bigger paycheck can mean more tax withheld that period. For 2025 through 2028, many workers can also deduct the premium half of their FLSA overtime on their federal return, up to $12,500 a year ($25,000 joint), with a phase-out at higher incomes.
Does working on a weekend count as OT?
Not automatically under federal law. Overtime depends on total hours in the workweek, not which day you work, unless your employer or state has other rules.
Sources
- U.S. Department of Labor: Overtime Pay
- U.S. Department of Labor: Fair Labor Standards Act
- IRS: Guidance for individuals who received tips or overtime
This article is general information, not legal or tax advice. Check with a qualified professional for your situation.
