Overtime Pay

How Overtime Pay Is Calculated

Overtime pay is the extra amount an hourly worker earns for hours worked beyond their normal schedule, typically at 1.5 times their normal rate. Enter your hourly rate, regular hours, overtime hours, and overtime multiplier, and this calculator finds your total gross pay.

Key Factors to Consider

• In the U.S., federal law (the Fair Labor Standards Act) sets 40 hours a week as the standard overtime threshold for non-exempt employees, requiring at least 1.5 times the regular rate for hours worked beyond that. Some states set a lower weekly threshold or add a daily overtime rule (extra pay after a certain number of hours in a single day, not just per week) — check your own state’s rules if they might be more generous than the federal minimum.
• Not every worker is legally entitled to overtime. The FLSA divides employees into “exempt” (typically salaried employees meeting specific duties and salary-level tests — many administrative, professional, and executive roles) and “non-exempt” categories. Employers must pay overtime to non-exempt employees but aren’t required to for exempt ones — this calculator assumes you’re calculating pay for hours already known to be eligible for overtime.
• The multiplier isn’t always 1.5x. “Time and a half” (1.5x) is the common default, but double time (2x) is common for holidays or under some union contracts or state rules — adjust the multiplier field to match your own actual pay rate for those hours.
• Bonuses and commissions can sometimes affect the “regular rate” overtime is calculated from. For some non-exempt workers, certain non-discretionary bonuses legally have to be factored into the regular rate before the overtime multiplier is applied, which can make the true overtime rate slightly higher than a simple hourly-rate calculation. This calculator uses your entered hourly rate directly — check your own situation if bonuses are a regular part of your pay.

The Formula

$$\vA{\text{Regular Pay}} = \text{Rate} \times \text{Regular Hours}$$ $$\vB{\text{Overtime Pay}} = \text{Rate} \times \vC{\text{Multiplier}} \times \text{Overtime Hours}$$ $$\vD{\text{Total Pay}} = \vA{\text{Regular Pay}} + \vB{\text{Overtime Pay}}$$

where Rate is your hourly rate and Multiplier is your overtime multiplier (e.g. 1.5).

Worked Example

At an hourly rate of $20, 40 regular hours, and 5 overtime hours at 1.5x:

1. $\vA{\text{Regular Pay}} = 20 \times 40 = \vA{\$800}$.
2. $\vB{\text{Overtime Pay}} = 20 \times \vC{1.5} \times 5 = \vB{\$150}$.
3. Total: $\vD{800 + 150} = \vD{\$950}$.

Useful to Know

California is a concrete example of a state overtime rule going well beyond the federal 40-hour-a-week minimum. California requires overtime pay after 8 hours in a single DAY (not just after 40 hours in a week), and even requires double time (2x) after 12 hours worked in one day — a schedule that’s perfectly normal under federal rules alone can still owe daily overtime under a state law like this one. Always check your own state’s specific rules, not just the federal floor, before assuming a schedule doesn’t trigger overtime.