How to Calculate Overtime Pay
Overtime pay is the extra money many hourly workers earn for working long weeks. This guide explains how it works in the United States and how to calculate it yourself.
The basic rule
The federal Fair Labor Standards Act (FLSA) says that covered, non-exempt employees must be paid at least one and a half times their regular rate for every hour worked over 40 in a workweek. This is called time and a half. A workweek is a fixed, repeating period of seven days in a row, and it does not have to start on Monday.
The overtime formula
Regular pay = hourly rate × regular hours (up to 40). Overtime pay = hourly rate × 1.5 × overtime hours. Total pay = regular pay + overtime pay.
Worked example
Say you earn $20 an hour and work 46 hours in a week. Your regular pay is 40 × $20 = $800. Your overtime rate is $20 × 1.5 = $30, and you have 6 overtime hours, so overtime pay is 6 × $30 = $180. Total pay for the week is $980 before taxes.
What counts as your regular rate
The regular rate is not always the same as your base hourly wage. Non-discretionary bonuses, such as a production bonus you were promised, are usually added in. For example, if you earn $20 an hour, work 45 hours and receive a $100 production bonus, your regular rate for that week is ($900 + $100) ÷ 45 = $22.22. You are owed an extra half of that rate for the 5 overtime hours, which is about $55.56. Rules like this can be detailed, so check with your employer or the U.S. Department of Labor for your situation.
State rules can be stricter
Some states add their own rules. California, for example, requires overtime after 8 hours in a day in many cases and double time after 12 hours. Your state may also set a higher minimum wage. When state and federal law both apply, you are entitled to whichever is more generous.
Who does not get overtime
Some employees are exempt from overtime, such as many executive, administrative and professional roles. Being paid a salary does not automatically make someone exempt. The job duties and pay level both matter. If you are unsure, ask your employer or your state labor department.
Calculate yours in seconds
Use our Overtime Pay Calculator to enter your rate, hours and multiplier and see your regular pay, overtime pay and total. If you want to see what your pay adds up to over a year, try the Hourly to Salary Calculator.
This guide is general information, not legal advice.