Overtime pay refers to the additional compensation that employees receive for working beyond their standard hours, typically over 40 hours in a week. This pay is often calculated at a higher rate, usually 1.5 times the regular hourly wage, to incentivize employees to work extra hours and to compensate them for the additional time spent on the job. The rules governing overtime pay can vary by country and are often outlined in labor laws. In the United States, the Fair Labor Standards Act (FLSA) sets the standards for overtime pay, ensuring that eligible employees are fairly compensated for their extra work hours.