When are non-exempt employees paid the premium overtime rate?

Employees are paid at the premium rate (1.5× the regular rate) only for hours actually worked over 40.0 hours in a workweek.

• Paid leave counts as compensable hours earned,
• but only physically worked hours count toward the 40-hour threshold.

Overtime cannot be paid until the workweek ends—even if it crosses two pay periods.

For more information, visit the State of Tennessee Attendance and Leave Manual.