The basic formula
Under the US federal rule (the Fair Labor Standards Act, or FLSA), non-exempt employees get at least 1.5 times their regular rate for every hour over 40 in a workweek.
- Add up the hours for the workweek, after taking off unpaid lunch breaks.
- Split them into regular hours (up to 40) and overtime hours (everything over 40).
- Multiply regular hours by the rate, and overtime hours by the rate × 1.5.
- Add the two together. That is gross pay before taxes and deductions.
Example: 45 hours at $30 an hour
| Line | Hours | Rate | Pay |
|---|---|---|---|
| Regular | 40.00 | $30.00 | $1,200.00 |
| Overtime (1.5×) | 5.00 | $45.00 | $225.00 |
| Gross pay | 45.00 | $1,425.00 |
Daily overtime
A few places also pay overtime for long days, even if the week stays under 40 hours. In California, hours over 8 in a day are paid at 1.5×, and hours over 12 in a day at 2× (double time).
Example: four 10-hour days in California is 40 hours, but each day has 2 hours over 8. That is 32 regular hours and 8 overtime hours. Under the federal rule alone, the same week has no overtime at all.
Hours are not counted twice. Once an hour is paid as daily overtime, it does not also count toward the 40-hour weekly limit.
Alaska, Nevada (for lower-paid workers) and Colorado also have daily overtime. See overtime laws by state for each rule.
Double time
Federal law never requires double time. California does: over 12 hours in a day, and over 8 hours on the seventh day in a row worked in the same workweek. Many employers and union agreements also pay double time by policy, for example on Sundays or holidays.
Bi-weekly pay periods
Overtime is worked out one workweek at a time, even if you are paid every two weeks. 45 hours in week one and 35 in week two is 80 hours, but it still includes 5 overtime hours from week one. The two weeks cannot be averaged. More in the bi-weekly guide.
What counts as the “regular rate”
For hourly workers it is usually the hourly wage. Under the FLSA, the regular rate can also include things like non-discretionary bonuses and shift differentials, which raises the overtime rate. If you get those, the simple hourly rate × 1.5 may undercount your overtime.
Union and collective agreements
Unionized workers are usually paid overtime under their collective agreement, which often beats the legal minimum. In the construction trades it is common to see double time after 8 hours a day or 40 a week, time and a half for the first two overtime hours and double time after that, and premiums for Saturdays, Sundays and holidays. Terms differ by local, sector and contract year, so always work from your current agreement. The calculator’s Union agreement mode lets you enter these terms.
Who does not get overtime
Some employees are exempt, for example many salaried managers and professionals who meet the federal duties and salary tests. Independent contractors are not covered either. If you are not sure whether you are exempt, ask your employer or your state labor department.
Sources: US Department of Labor: Overtime Pay · California DIR: Overtime FAQ
Questions
How do I calculate time and a half?
Multiply your hourly rate by 1.5. At $24 an hour, time and a half is $36 an hour. Multiply that by your overtime hours.
Is overtime after 8 hours a day?
Only in some places. Federal law and most states use 40 hours a week. California and Alaska pay overtime after 8 hours in a day, Nevada does for workers paid under $18.00 an hour, and Colorado after 12 hours in a day.
Do paid holidays count toward overtime?
Under the federal rule, overtime is based on hours actually worked, so paid time off such as a holiday you did not work usually does not count toward the 40 hours. Employer policies and union agreements can be more generous.