How to Calculate Your Overtime Pay

Overtime pay is the additional compensation paid to employees who work more than a set number of hours in a workweek. In most cases under US federal law, overtime is calculated as “time and a half” (1.5 times your regular rate) for any hours worked beyond 40. Follow these steps to calculate your earnings:

1. Enter your regular hourly rate — Input your standard hourly pay (e.g., $25.00).
2. Enter your total hours worked — Input the total hours you worked during the week (e.g., 48 hours).
3. Set the regular hours limit — The default is 40 hours per week, but you can adjust this if your company uses a different threshold.
4. Select the overtime multiplier — Choose between Time and a Half (1.5x) or Double Time (2.0x).
5. Click “Calculate” — The tool will calculate your regular pay, overtime pay, and total gross earnings.

The Overtime Pay Formula

Calculating overtime involves separating your total hours into regular hours and overtime hours, then applying the appropriate rates:

1. Determine Overtime Hours:
   Overtime Hours = Total Hours Worked − Regular Hours Limit (if total hours exceed the limit).
2. Calculate Regular Pay:
   Regular Pay = Regular Hours × Regular Rate.
3. Calculate Overtime Rate:
   Overtime Rate = Regular Rate × Overtime Multiplier.
4. Calculate Overtime Pay:
   Overtime Pay = Overtime Hours × Overtime Rate.
5. Sum for Total Gross Pay:
   Total Pay = Regular Pay + Overtime Pay.

For example, if you earn $20.00/hr and work 45 hours in a week:

• Regular hours: 40 hrs. Overtime hours: 5 hrs.
• Regular pay = 40 × $20.00 = $800.00.
• Overtime rate = $20.00 × 1.5 = $30.00/hr.
• Overtime pay = 5 × $30.00 = $150.00.
• Total Gross Pay = $800.00 + $150.00 = $950.00.

Overtime Laws: FLSA Regulations

The Fair Labor Standards Act (FLSA) regulates overtime pay in the United States. Key rules include:

• Weekly Threshold: Overtime is calculated on a weekly basis. Hours cannot be averaged over a two-week pay period (e.g., working 50 hours in week 1 and 30 hours in week 2 still requires 10 hours of overtime pay in week 1).
• Daily Overtime: While federal law does not require daily overtime, some states (like California) require overtime pay (1.5x) for any hours worked beyond 8 in a single workday, and double time (2.0x) for hours beyond 12.
• Exempt vs. Non-Exempt: Non-exempt employees are legally entitled to overtime pay. Exempt employees (often salaried professionals, managers, or administrative staff earning above a specific threshold) are typically exempt from overtime laws.

Frequently Asked Questions

What is “time and a half”?

“Time and a half” is the standard rate for overtime pay. It means you receive your regular hourly wage (“time”) plus an additional 50% (“half”) of that wage for every overtime hour worked. This is equivalent to multiplying your regular rate by 1.5.

What is “double time”?

“Double time” is an overtime rate equal to twice your regular hourly wage (regular rate × 2.0). Double time is not required by federal law, but some employers pay it for working holidays, Sundays, or when an employee works extremely long shifts (such as over 12 hours in a day in California).

How do I calculate overtime if I am salaried?

If you are a non-exempt salaried employee, first convert your salary to an hourly equivalent: divide your weekly salary by your standard weekly hours (usually 40). Then, calculate your overtime rate (1.5x this hourly equivalent) for any hours worked beyond 40.

Can my employer require me to work overtime?

Yes. Under federal law, employers can require employees to work mandatory overtime, provided they are compensated at the legal overtime rate for those hours. There is no federal limit on the number of hours an employee can work in a week, as long as they are at least 16 years old.