How to use it
- Enter your regular hourly rate and the hours paid at that rate, usually up to 40.
- Add your overtime hours and the multiplier your employer uses. Time-and-a-half is 1.5.
- Add double-time hours if your state or union contract provides them. They are paid at twice your rate.
The overtime formula
Overtime rate = Regular rate × Multiplier
Overtime pay = Overtime rate × Overtime hours
Weekly gross = Regular pay + Overtime pay + Double-time pay
Worked example
Devin earns $22 an hour and works 46 hours in a week. The first 40 hours pay 40 × 22 = $880. The 6 overtime hours pay 22 × 1.5 = $33 an hour, which is $198. His gross for the week is $1,078, and his effective rate across all 46 hours is $23.43 an hour. Over a full year of similar weeks, that is roughly $56,056 before taxes.
What federal law requires
Under the Fair Labor Standards Act, non-exempt employees must be paid at least one and a half times their regular rate for hours worked beyond 40 in a workweek. A few points that surprise people:
- Overtime is calculated per workweek, a fixed seven-day period. It is not averaged across two weeks, even if you are paid biweekly.
- There is no federal daily overtime. Working 12 hours in one day does not trigger overtime under federal law unless the week passes 40 hours.
- Paid holidays and vacation hours usually do not count toward the 40, because they are not hours worked.
- Your "regular rate" can be higher than your base rate, because nondiscretionary bonuses and shift differentials must be included in it.
States with stronger rules
Several states go beyond the federal minimum. California is the best known: overtime after 8 hours in a day, double time after 12 hours in a day, and extra rules for the seventh consecutive day of work. Alaska, Nevada and Colorado also have daily overtime rules in some situations. Check your state labor department, because the rule that helps the employee is the one that applies.
Exempt or non-exempt?
Overtime protection depends on your classification, not your job title. Being paid a salary does not automatically make you exempt. Exemption generally requires both a salary above a threshold set by the Department of Labor and job duties that fit an executive, administrative, professional, outside sales or computer category. The salary threshold has been revised several times and has also been challenged in court, so check the current figure on the Department of Labor website rather than relying on an old number.
Common payroll mistakes worth catching
- Averaging hours across two weeks of a biweekly pay period instead of by workweek.
- Paying overtime on the base rate only, ignoring a production bonus that should raise the regular rate.
- Offering "comp time" instead of overtime pay. Private employers generally cannot do this.
- Counting unpaid meal breaks as worked time, or failing to pay for short breaks of 20 minutes or less, which are usually paid.
If the numbers on your pay stub don't match what this calculator shows, start with your hours by workweek and your regular rate. Keep your own record of hours, which the time card calculator makes easy. This page explains the general rules and is not legal advice.
Frequently asked questions
How do I calculate time and a half?
Multiply your hourly rate by 1.5, then multiply by your overtime hours. At $22 an hour, overtime pays $33 an hour.
Is overtime paid after 8 hours a day?
Not under federal law, which uses a 40-hour week. Some states, including California, do require daily overtime.
Does vacation time count toward overtime?
Usually no. Most employers count only hours actually worked toward the 40-hour threshold.
Can salaried employees get overtime?
Yes, if they are classified as non-exempt. Being paid a salary does not by itself remove overtime rights.
What is double time?
Twice your regular rate. It is not required by federal law but appears in some state rules and union contracts.
Last reviewed on by the Dailycaltor team.