OT is federal law, and paying taxes is also the law.
17 x 50 = $850
(17 x 40) + (10 x 25.5) = $935
Generally, taxes (SS/Med, Fed, State) eat up about 25% of your gross pay.
850 - 25% = $637.50
935 - 25% = $701.25
So you need to decide whether you want to push your employers to fully follow payroll laws, and take home much less money per week, like all of us who pay taxes do, or whether you want to just keep quiet, continue to break the law along with your employers, and keep lots more money each week.
Oh, and the reason so many people in DC and the surrounding areas pay legally is because they have government jobs, and risk a serious S#!T storm if they defraud the government of taxes.