How to Calculate Overtime Pay
Overtime pay is additional compensation paid to employees who work beyond their standard scheduled hours. In the United States the Fair Labor Standards Act (FLSA) requires most employers to pay non-exempt employees at least 1.5 times their regular hourly rate for all hours worked beyond 40 in a workweek.
Regular Pay = Regular Hours × Hourly Rate
Overtime Pay = Overtime Hours × (Hourly Rate × Overtime Multiplier)
Total Pay = Regular Pay + Overtime Pay
Example at $20/hr working 50 hours (10 overtime at 1.5x):
Regular Pay = 40 × $20 = $800
Overtime Pay = 10 × ($20 × 1.5) = 10 × $30 = $300
Total Weekly Pay = $800 + $300 = $1,100
US Overtime Laws — Key Facts
- Federal law requires overtime pay after 40 hours per workweek for non-exempt employees
- Some states have daily overtime rules — California requires overtime after 8 hours in a day
- Time and a half (1.5x) is the federal minimum — employers can offer more
- Salaried employees classified as exempt are generally not entitled to overtime
- Some states require double time for holidays or hours beyond 12 per day
Who Is Entitled To Overtime?
Non-exempt employees under the FLSA are entitled to overtime. Most hourly workers qualify. Salaried employees earning less than $684 per week also qualify. Exempt employees — typically executives, administrators and professionals earning above the threshold — generally do not receive overtime pay.
Frequently Asked Questions
How do I calculate time and a half? +
Time and a half means 1.5 times your regular hourly rate. To calculate: multiply your hourly rate by 1.5 to get your overtime rate, then multiply by overtime hours worked. Example: $20/hr × 1.5 = $30 overtime rate. 10 overtime hours × $30 = $300 overtime pay. Add to your regular pay for total weekly earnings.
When does overtime start? +
Under US federal law overtime starts after 40 hours worked in a single workweek. Some states have stricter rules — California requires overtime after 8 hours in a single day regardless of weekly total. Always check your state laws as they may provide greater protection than federal minimums.
Is overtime calculated daily or weekly? +
Under federal FLSA rules overtime is calculated weekly — based on hours exceeding 40 in a workweek. However some states like California calculate overtime both daily (over 8 hours) and weekly (over 40 hours). If both daily and weekly overtime apply you receive the greater of the two calculations — not both added together.
Do salaried employees get overtime? +
It depends on their classification and salary level. Salaried employees earning less than $684 per week ($35,568 annually) are entitled to overtime regardless of their job duties. Salaried employees above this threshold may be exempt if they perform executive, administrative or professional duties. Always verify your classification with your employer or HR department.
What is double time and when does it apply? +
Double time means 2 times your regular hourly rate. US federal law does not require double time — it is only required in specific situations under some state laws. California requires double time for hours beyond 12 in a day or beyond 8 hours on the 7th consecutive day of work. Many employers voluntarily offer double time for holidays as an incentive.