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How to Calculate Overtime Pay

Overtime pay at time and a half is required by federal law for any nonexempt employee who works more than 40 hours in a workweek. The formula is straightforward once you know the regular rate.

Run your own overtime math

Enter a rate and hours to see the overtime premium.

Time and a half means your regular hourly rate multiplied by 1.5. Federal law (FLSA) requires this rate for every hour a nonexempt employee works beyond 40 in a single workweek. Some states have daily overtime rules too, so always check your state's law.

The overtime formula, step by step

Worked example: hourly employee

ItemCalculationAmount
Regular rate$18.00/hr
Overtime rate (1.5x)$18.00 x 1.5$27.00/hr
Regular pay (40 hrs)40 x $18.00$720.00
Overtime pay (6 hrs)6 x $27.00$162.00
Total gross pay$882.00

What "double time" means

Some employers and some state laws (notably California) require double time, which is the regular rate x 2.0, for hours beyond a certain daily or weekly threshold. Double time is not required under federal law but may be required by your state or your employment contract.

Salaried nonexempt employees

Many salaried workers are still entitled to overtime. Find their effective hourly rate by dividing their weekly salary by 40, then apply the 1.5x formula for any hours over 40. A salaried employee earning $800/week has an effective rate of $20/hr and an overtime rate of $30/hr.

Which employees are exempt?

Executive, administrative, and professional employees who earn more than the salary threshold set by the Department of Labor are typically exempt from overtime. Exempt status depends on both job duties and salary level. When in doubt, check with the Department of Labor or your payroll provider. See how to calculate total hours worked first to know whether overtime applies.

Overtime rate comparison at common wages

Use this table to find your overtime rate without doing the math:

Regular rateTime-and-a-half rateDouble-time rate
$12.00/hr$18.00/hr$24.00/hr
$15.00/hr$22.50/hr$30.00/hr
$17.00/hr$25.50/hr$34.00/hr
$18.00/hr$27.00/hr$36.00/hr
$20.00/hr$30.00/hr$40.00/hr
$22.00/hr$33.00/hr$44.00/hr
$25.00/hr$37.50/hr$50.00/hr

State overtime laws that go beyond federal rules

Federal law sets the floor, but several states require overtime in situations where federal law would not. Key examples:

Always verify your state's current rules with the state labor agency or a qualified employment professional. This information is provided for general educational purposes only and is not legal advice.

How the FLSA workweek definition affects overtime

Overtime under the FLSA is calculated on a workweek basis, not a pay period basis. A workweek is any fixed recurring period of 168 hours, which is seven consecutive 24-hour periods. Employers choose the start day of their workweek (Sunday through Saturday are common choices), and that day is fixed unless there is a legitimate business reason to change it. This matters because a biweekly pay period covering two weeks contains two separate workweeks for overtime purposes. Hours from one week cannot be averaged into the other. If an employee works 36 hours in week one and 44 hours in week two of a biweekly pay period, they are owed overtime for 4 hours in week two even if the two-week average is 40 hours. Use the time card calculator to track each workweek separately and catch overtime before processing payroll.

The regular rate when employees receive bonuses or shift differentials

The "regular rate" used for overtime calculations is not always just the base hourly wage. Under the FLSA, most non-discretionary bonuses (production bonuses, attendance bonuses, and similar incentive pay) must be folded into the regular rate before computing overtime. For example, if an employee earns a $60 non-discretionary bonus in a 50-hour week, divide $60 by 50 to get $1.20 per hour, add that to the base rate, then apply 1.5x to the combined rate for overtime hours. Discretionary bonuses that are not announced in advance are generally excluded from the regular rate. This corner of wage law gets complicated fast; treat this page as a starting point and check the specifics with a payroll provider or employment attorney.

Track the workweek that triggers it

Log daily hours to see exactly when the 40-hour line gets crossed.

Related reading

Good to know

FAQs

What is time and a half?

Time and a half is an overtime pay rate equal to 1.5 times an employee's regular hourly rate. If you earn $16/hr, your time-and-a-half rate is $24/hr. Federal law requires it for nonexempt employees working more than 40 hours in a workweek.

How do I calculate my overtime pay?

Multiply your regular hourly rate by 1.5 to get the overtime rate, then multiply that by the number of hours worked over 40. Add that to your regular pay (40 x regular rate) for your total weekly gross pay. Example: $20/hr base, 5 overtime hours: ($20 x 40) + ($30 x 5) = $950.

Does overtime kick in after 8 hours a day or 40 hours a week?

Under federal law, overtime is triggered after 40 hours in a workweek, not per day. However, California and a few other states require overtime after 8 hours in a single day regardless of the weekly total. Check your state rules if you are outside those states.

What is the difference between overtime and double time?

Overtime (time and a half) is 1.5x the regular rate and applies after 40 hours per week under federal law. Double time (2x the regular rate) is not federally mandated but is required by some states like California for hours beyond 12 in a day or beyond 8 on the seventh consecutive day of a workweek.

Jessica Martinez
About the author
Jessica Martinez
Contributing Writer, Business & Finance, Encore Editorial

Jessica's six years underwriting loan files taught her to trace a number back to its source before repeating it, which is exactly the discipline overtime math rewards: the FLSA sets a federal floor, several states add a stricter daily rule on top, and the two get confused constantly. She covers where the federal rule ends and a state's own wage order picks up.