Federal and state laws require most employers to pay overtime. The overtime premium is 50% of the employee's usual hourly wage.This means an employee who works overtime must be paid time and a half -- the employee's usual hourly wage plus the 50% overtime premium -- for every overtime hour worked.These laws contain many exceptions, so not all employees are entitled to overtime.he overtime premium is 50% of the employee's usual hourly wage. This means an employee who works overtime must be paid time and a half -- the employee's usual hourly wage plus the 50% overtime premium -- for every overtime hour worked.