How to Calculate Overtime Pay
Overtime pay is one of the most important protections for hourly workers in the United States. If you work more than the standard number of hours in a week, federal law requires your employer to pay you at a higher rate for those extra hours. Understanding how overtime is calculated helps you verify your paycheck and know your rights.
The FLSA 40-Hour Threshold
Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay for any hours worked beyond 40 in a single workweek. The workweek is defined as any fixed, recurring period of 168 hours (seven consecutive 24-hour periods). Your employer chooses when the workweek starts, but it must remain consistent.
Only hours actually worked count toward the 40-hour threshold. Paid time off, holidays, and sick days generally do not count unless your employer's policy says otherwise.
Time-and-a-Half Calculation
The standard overtime rate is "time and a half," which means 1.5 times your regular hourly rate. The formula is straightforward:
Overtime Pay = Overtime Hours x (Hourly Rate x 1.5)
Example: You earn $20.00 per hour and work 46 hours in a week. Your first 40 hours are paid at the regular rate, and the remaining 6 hours qualify for overtime.
- Regular pay: 40 hours x $20.00 = $800.00
- Overtime pay: 6 hours x ($20.00 x 1.5) = 6 x $30.00 = $180.00
- Total gross pay: $800.00 + $180.00 = $980.00
Double Time
Double time means you are paid twice your regular hourly rate. Federal law does not require double time, but some states do. California is the most notable example, where double time kicks in after 12 hours in a single workday or after 8 hours on the seventh consecutive day worked in a workweek.
Double Time Pay = Double Time Hours x (Hourly Rate x 2.0)
Example: A California employee earning $25.00 per hour works a 14-hour shift. The first 8 hours are regular, the next 4 hours (hours 9 through 12) are at time and a half, and the final 2 hours (hours 13 and 14) are at double time.
- Regular pay: 8 hours x $25.00 = $200.00
- Overtime pay (1.5x): 4 hours x $37.50 = $150.00
- Double time pay (2x): 2 hours x $50.00 = $100.00
- Total gross pay: $200.00 + $150.00 + $100.00 = $450.00
State-Specific Rules
While the federal 40-hour weekly threshold applies nationwide, several states add daily overtime thresholds. California, Alaska, Nevada, and Colorado require overtime after 8 hours in a single day, regardless of weekly totals. Always check your state's Department of Labor website for the rules that apply to you.
Who Is Exempt from Overtime?
Not every worker qualifies for overtime. The FLSA exempts certain salaried employees who meet specific duties tests and earn above a salary threshold (currently $684 per week or $35,568 per year). Common exempt categories include executive, administrative, and professional employees. Independent contractors are also not covered by overtime rules.
Calculate Your Overtime Pay
Use our free Overtime Calculator to instantly calculate your regular pay, overtime pay, and total gross earnings. Enter your hourly rate and hours worked, and the calculator handles the math for you.