Overtime Calculator
Calculate overtime pay at time-and-a-half or double time rates
How Overtime Pay Works: A Complete Guide
Overtime pay compensates employees for hours worked beyond their standard schedule. Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay at no less than one and one-half times their regular rate for all hours worked over 40 in a workweek. Some states impose additional requirements—including daily overtime thresholds and double-time mandates—that provide greater protections than federal law.
Understanding how overtime is calculated matters whether you are an employee verifying a paycheck or an employer ensuring compliance. Errors in overtime calculation are among the most common wage-and-hour violations, and the Department of Labor recovers hundreds of millions of dollars in back wages each year for affected workers.
Overtime Pay Formula
Overtime Pay = Overtime Hours × Regular Hourly Rate × OT Multiplier
Total Weekly Pay = (Standard Hours × Regular Rate) + Overtime Pay
The OT multiplier is typically 1.5 (time and a half) under federal law. Some situations call for 2.0 (double time) or higher rates.
Worked Examples
Example 1: Standard Time and a Half
Rachel earns $22.00/hour and works 47 hours in a week with a 40-hour standard schedule.
- Regular Pay: 40 × $22.00 = $880.00
- OT Hours: 47 − 40 = 7 hours
- OT Rate: $22.00 × 1.5 = $33.00/hour
- OT Pay: 7 × $33.00 = $231.00
- Total Weekly Pay: $880.00 + $231.00 = $1,111.00
Without overtime, Rachel would have earned only $1,034.00 for 47 hours at straight time—overtime adds $77.00 in extra compensation.
Example 2: Double Time
Carlos earns $28.00/hour and works 52 hours in a week. His union contract specifies 1.5× for hours 41–48 and 2× for hours beyond 48.
- Regular Pay: 40 × $28.00 = $1,120.00
- OT Pay (1.5×): 8 hours × $28.00 × 1.5 = $336.00
- OT Pay (2×): 4 hours × $28.00 × 2.0 = $224.00
- Total Weekly Pay: $1,120.00 + $336.00 + $224.00 = $1,680.00
Example 3: California Daily Overtime
Priya earns $20.00/hour in California. On Monday she works 10 hours and on Tuesday she works 13 hours. California law requires 1.5× for hours 9–12 in a day and 2× for hours beyond 12.
- Monday (10 hours): 8 regular × $20 = $160 + 2 OT × $30 = $60 → $220
- Tuesday (13 hours): 8 regular × $20 = $160 + 4 OT (1.5×) × $30 = $120 + 1 OT (2×) × $40 = $40 → $320
- Two-Day Total: $220 + $320 = $540
At straight time the same 23 hours would pay only $460—California's daily OT rules add $80 in extra wages.
Overtime Rates by Situation
| Situation | OT Multiplier | Legal Basis |
|---|---|---|
| Federal weekly OT (>40 hrs) | 1.5× | FLSA §207(a) |
| California daily OT (hours 9–12) | 1.5× | CA Labor Code §510 |
| California daily OT (>12 hrs) | 2.0× | CA Labor Code §510 |
| California 7th consecutive day (first 8 hrs) | 1.5× | CA Labor Code §510 |
| California 7th consecutive day (>8 hrs) | 2.0× | CA Labor Code §510 |
| Union/CBA holiday premium | 2.0×–2.5× | Collective bargaining agreement |
| Government contractor OT | 1.5× | Contract Work Hours Act |
FLSA Exemption Categories
Not all employees are entitled to overtime. The FLSA defines several exemption categories based on salary level and job duties. To qualify as exempt, an employee generally must earn at least $684/week ($35,568/year) on a salary basis and perform exempt duties:
- Executive Exemption – Primary duty is managing the enterprise or a department; regularly directs the work of at least two full-time employees; has authority to hire/fire or make recommendations that carry weight.
- Administrative Exemption – Primary duty involves office or non-manual work related to management or business operations; exercises discretion and independent judgment on significant matters.
- Professional Exemption – Work requires advanced knowledge in a field of science or learning (learned professional) or original and creative talent (creative professional).
- Computer Employee Exemption – Systems analysts, programmers, and software engineers earning at least $684/week (salary) or $27.63/hour. Duties must involve systems design, analysis, or programming.
- Outside Sales Exemption – Primary duty is making sales or obtaining orders away from the employer's place of business. No salary threshold required.
- Highly Compensated Employee – Employees earning $107,432 or more annually who perform at least one exempt duty from the executive, administrative, or professional categories.
Warning: Exempt vs. Non-Exempt Misclassification
Incorrectly classifying a non-exempt employee as exempt is one of the most costly wage-and-hour mistakes an employer can make. The Department of Labor can require back-payment of all unpaid overtime plus an equal amount in liquidated damages. Violations can go back two years (three years for willful violations). Job titles alone do not determine exemption—the employee's actual duties and salary level must meet every element of the applicable test.
State Overtime Laws Comparison
While the FLSA sets the federal floor, many states impose stricter overtime requirements. Employers must follow whichever law—federal or state—is more favorable to the employee.
| State | Weekly Threshold | Daily Threshold | Notable Rules |
|---|---|---|---|
| California | 40 hours | 8 hours (1.5×), 12 hours (2×) | 7th consecutive day OT; 2× after 8 hrs on 7th day |
| Alaska | 40 hours | 8 hours | Daily and weekly OT at 1.5× |
| Colorado | 40 hours | 12 hours | Daily OT kicks in at 12 hours, not 8 |
| Nevada | 40 hours | 8 hours | Daily OT at 1.5× if rate is below 1.5× minimum wage |
| Oregon | 40 hours | None | Manufacturing: daily OT after 10 hours |
| New York | 40 hours | None | Residential employees: OT after 44 hours |
| Washington | 40 hours | None | Agricultural workers phasing in OT protections by 2024 |
| Texas | 40 hours | None | Follows federal FLSA only; no state-specific OT law |
Calculating the Regular Rate for Varying Pay
When an employee earns different rates during a workweek (e.g., $15/hour for one task and $20/hour for another), the FLSA requires using the weighted average as the regular rate for overtime purposes. Add total straight-time earnings for all hours worked, then divide by total hours. The overtime premium is half this weighted average, multiplied by OT hours.
Example: An employee works 30 hours at $15 ($450) and 15 hours at $20 ($300). Total earnings = $750, total hours = 45. Weighted rate = $750 ÷ 45 = $16.67. OT premium = 5 hours × ($16.67 × 0.5) = $41.67. Total pay = $750 + $41.67 = $791.67.
How to Track Overtime Accurately
Accurate overtime tracking starts with reliable timekeeping. Employers should implement clear policies and use consistent methods to record hours worked:
- Define the workweek – The FLSA allows employers to set any fixed, recurring 168-hour period as the workweek. Once established, it cannot be changed to avoid overtime obligations.
- Record all hours worked – This includes time spent on pre-shift preparation, post-shift cleanup, required training, and work performed at home or on mobile devices.
- Use automated time tracking – Digital timekeeping systems reduce rounding errors and provide audit trails that protect both employers and employees.
- Review weekly, not per-shift – Under federal law, overtime is calculated on a workweek basis. Hours from one week cannot be averaged with another week (except in specific 8-and-80 arrangements for healthcare).
- Account for multiple rates – If an employee performs work at different pay rates, calculate the weighted average regular rate before applying the overtime premium.
Frequently Asked Questions
Is overtime calculated daily or weekly?
Under federal law (FLSA), overtime is calculated on a weekly basis—hours over 40 in a workweek trigger OT pay. However, some states like California, Alaska, and Nevada also require daily overtime for hours exceeding 8 (or 12, depending on the state) in a single day.
Can an employer require mandatory overtime?
Yes. The FLSA does not limit the number of hours an adult employee can work in a week. Employers can require overtime, though they must pay the premium rate. Some states and union agreements limit mandatory overtime in specific industries, particularly healthcare.
Does overtime apply to salaried employees?
It depends on exemption status, not pay method. Salaried employees who are classified as non-exempt under the FLSA are entitled to overtime. Only employees meeting the specific duties and salary tests for executive, administrative, professional, computer, or outside sales exemptions can legally be denied overtime.
How is overtime calculated for tipped employees?
Overtime for tipped employees is based on the full minimum wage, not the reduced tipped wage. The regular rate is calculated using the full federal minimum wage ($7.25) or applicable state minimum wage, and the 1.5× multiplier applies to that rate.