Calculate Overtime Pay
The Overtime Calculator computes your overtime pay and total weekly earnings based on your hourly rate, hours worked, and overtime multiplier. It uses the standard FLSA formula: overtime hours are paid at 1.5× (time and a half) or 2× (double time) your regular rate.
How Overtime Pay Is Calculated
Under the Fair Labor Standards Act (FLSA), non-exempt employees in the United States must receive overtime pay of at least 1.5 times their regular rate for all hours worked beyond 40 in a workweek. Some states and employers also require double time (2×) in specific situations.
The Overtime Pay Formula
- Regular Pay = Hourly Rate × Regular Hours
- Overtime Pay = Hourly Rate × OT Multiplier × Overtime Hours
- Total Pay = Regular Pay + Overtime Pay
- Effective Hourly Rate = Total Pay ÷ Total Hours Worked
Worked Example: Time and a Half
Regular Pay: $25 × 40 = $1,000
OT Rate: $25 × 1.5 = $37.50/hr
Overtime Pay: $37.50 × 10 = $375
Total: $1,000 + $375 = $1,375
Effective Rate: $1,375 ÷ 50 = $27.50/hr
Worked Example: Double Time
Regular Pay: $20 × 40 = $800
OT Rate: $20 × 2 = $40.00/hr
Overtime Pay: $40 × 4 = $160
Total: $800 + $160 = $960
Effective Rate: $960 ÷ 44 = $21.82/hr
Federal vs. State Overtime Rules
The FLSA sets a floor, but many states have stricter overtime requirements. When federal and state law differ, the rule that benefits the employee applies.
This is a general overview. Overtime rules depend on your state, industry, and employment classification. Consult your state's Department of Labor for the rules that apply to your situation.
Who Qualifies for Overtime?
Not every worker is entitled to overtime. The FLSA divides employees into exempt and non-exempt categories.
Non-exempt employees must receive overtime pay. This includes most hourly workers and some salaried employees below the salary threshold.
Exempt employees generally do not qualify. To be exempt, an employee typically must:
- Be paid on a salary basis (not hourly)
- Earn at least $844/week ($43,888/year as of 2024)
- Perform executive, administrative, or professional duties as defined by the FLSA
Specific exemptions also apply to certain computer professionals, outside sales workers, and highly compensated employees earning over $132,964/year.
Common Overtime Mistakes
1. Confusing Daily vs. Weekly Overtime
Federal law counts overtime weekly (after 40 hours). But if you're in California, Alaska, or another daily-overtime state, you may earn overtime after 8 hours in a single day — even if your weekly total is under 40.
2. Thinking Overtime "Isn't Worth It" Because of Taxes
A common misconception. Overtime is taxed at your marginal rate, not at a special higher rate. You always take home more money with overtime than without it. The withholding on your paycheck may look higher because your employer estimates annual income based on that pay period, but you'll get the difference back when you file taxes.
3. Not Counting All Hours Worked
Time spent on mandatory training, required setup/cleanup, and on-call time where you can't use the time freely may all count as compensable hours. "Off-the-clock" work must still be paid.
4. Assuming Salary Means No Overtime
Being paid a salary does not automatically make you exempt. If your salary is below the FLSA threshold or your duties don't meet the exemption criteria, you're entitled to overtime regardless of how you're paid.
Frequently Asked Questions
How do I calculate overtime pay?
Use the formula: Overtime Pay = Hourly Rate × Overtime Multiplier × Overtime Hours. The standard multiplier is 1.5 (time and a half). For example, at $20/hr with 10 overtime hours: $20 × 1.5 × 10 = $300.
What is time and a half?
Time and a half means 1.5 times your regular hourly rate. If you earn $24/hr, your time-and-a-half rate is $36/hr. This is the minimum overtime rate required by the FLSA for hours beyond 40 per workweek.
When does overtime start?
Under federal law, overtime begins after 40 hours in a workweek. California, Alaska, and a few other states also trigger overtime after 8 hours in a single day. Your employer or union contract may set a lower threshold.
Is overtime taxed at a higher rate?
No. Overtime wages are taxed at the same income tax rate as your regular wages. It may look like more is withheld because payroll systems project the higher paycheck across the year. Any over-withholding is returned as a tax refund.
Who is exempt from overtime pay?
Salaried employees who earn above $844/week and perform executive, administrative, or professional duties. Certain computer professionals, outside sales workers, and highly compensated employees may also be exempt. Hourly workers are almost always non-exempt.
What is double time?
Double time means 2× your regular hourly rate. It's required in California after 12 hours in a day, and common in union contracts for holidays or seventh-day work. It is not required by federal law.
Can my employer refuse to pay overtime?
If you're a non-exempt employee and you worked the hours, your employer is legally required to pay overtime. Refusing to pay overtime violates the FLSA. You can file a complaint with the Department of Labor's Wage and Hour Division.
How is overtime calculated with a blended rate?
If you work at two different rates in one week (e.g., $15/hr and $20/hr), your overtime rate is based on the weighted average. Add all straight-time earnings, divide by total hours to get the regular rate, then multiply by 0.5 for the overtime premium per hour.
Does overtime count weekends and holidays?
Federal law does not require extra pay for weekend or holiday work specifically. Overtime is based on total hours in the workweek, not which days you work. However, many employers and union contracts do pay premium rates for weekends and holidays.
How does overtime affect my annual income?
Consistent overtime adds up significantly. Working 5 overtime hours per week at $25/hr (1.5×) adds $9,750/year in gross income. Use the annual projection in the calculator above to see the impact for your specific situation.
Privacy & Limitations
- All calculations run entirely in your browser -- nothing is sent to any server.
- Results are estimates for planning purposes and should not replace professional financial advice.
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Overtime Calculator FAQ
How do I calculate overtime pay?
Multiply your hourly rate by the overtime multiplier (usually 1.5× for time-and-a-half), then multiply by the number of overtime hours. Formula: Overtime Pay = Hourly Rate × 1.5 × Overtime Hours. For example, at $20/hr with 10 overtime hours: $20 × 1.5 × 10 = $300 in overtime pay.
What is time and a half?
Time and a half means 1.5 times your regular hourly rate. If you earn $20/hr, time and a half is $30/hr. Under the FLSA, non-exempt employees must receive at least time and a half for hours worked beyond 40 in a workweek.
When does overtime start?
Under federal law (FLSA), overtime starts after 40 hours in a workweek. Some states have stricter rules. California requires overtime after 8 hours in a single day. Alaska requires overtime after 8 hours per day for employers with 4+ employees. Check your state's labor laws for the applicable threshold.
What is double time?
Double time means 2 times your regular hourly rate. In California, double time is required after 12 hours in a single day and for hours worked beyond 8 on the seventh consecutive workday. Other states and employers may also offer double time voluntarily or through union contracts.
Who is exempt from overtime pay?
Under the FLSA, salaried employees who earn above a minimum threshold and perform executive, administrative, or professional duties are typically exempt from overtime. As of 2024, the salary threshold is $844/week ($43,888/year). Specific exemptions also exist for certain computer, outside sales, and highly compensated employees.
Is overtime pay calculated before or after taxes?
Overtime pay is calculated on your gross (pre-tax) hourly rate. Taxes are withheld from your total paycheck (regular pay + overtime pay combined). Overtime income is taxed at the same income tax rate as regular wages — it does not automatically push you into a higher tax bracket for all your income.
How do I calculate my effective hourly rate with overtime?
Divide your total weekly gross pay (regular pay + overtime pay) by total hours worked. For example, 40 regular hours at $25/hr ($1,000) plus 10 overtime hours at $37.50/hr ($375) = $1,375 total. Effective rate: $1,375 ÷ 50 hours = $27.50/hr.
Does overtime count toward retirement contributions?
In most cases, yes. If your 401(k) contribution is a percentage of gross pay, overtime pay increases the dollar amount contributed. However, some employer plans define 'eligible compensation' differently. Check your plan documents or HR department for specifics.
Can an employer force overtime?
In most US states, employers can require mandatory overtime as long as they pay the legally required overtime rate. Exceptions exist in some industries (healthcare, transportation) and through union contracts. Refusing mandatory overtime may be grounds for discipline, though laws vary by state.
How is overtime calculated for workers with multiple pay rates?
When an employee works at two or more rates in a single workweek, overtime is typically calculated using the weighted average rate. Add all straight-time earnings, divide by total hours worked to get the regular rate, then multiply by 1.5 for the overtime premium. This is called the blended rate method.