How to Calculate Overtime Pay
Under federal law (FLSA), overtime is defined as any time worked over 40 hours in a single workweek. The standard overtime rate is "Time and a Half" (1.5 times your regular hourly rate).
The Overtime Formula
To calculate your overtime earnings manually:
- Calculate Overtime Rate: Hourly Rate × 1.5
- Calculate Overtime Pay: Overtime Rate × Overtime Hours
- Add Regular Pay: (Regular Rate × 40) + Overtime Pay
For example, if you earn $20/hour and work 50 hours:
- Regular Pay: $20 × 40 = $800
- OT Rate: $20 × 1.5 = $30/hour
- OT Pay: $30 × 10 = $300
- Total Pay: $1,100
When Does Double Time Apply?
Double time (2x your hourly rate) is not required by federal law, but some states and union contracts mandate it. For example, in California, you must be paid double time for:
- Any work over 12 hours in a single day.
- Any work over 8 hours on the 7th consecutive day of work.
Overtime Rules by State
Overtime laws vary significantly across the United States. While most states follow the federal FLSA rule (1.5x after 40 hours), states like California and Alaska have daily overtime rules.
Popular State Calculators:
Living in another state? View All 50 States Overtime Guide →
Frequently Asked Questions
How much is time and a half?
Time and a half is exactly 1.5 times your standard hourly rate. For example, if your regular pay is $20 per hour, time and a half is $30 per hour. You earn this higher rate for any hours worked over 40 in a single workweek.
How do you figure out time and a half?
You figure it out by multiplying your regular hourly wage by 1.5. Then, multiply that new overtime rate by the number of overtime hours you worked. Finally, add this amount to your regular 40-hour pay to get your total gross paycheck.
How to work out time and a half in your head?
To work out time and a half quickly without a calculator, simply take half of your hourly rate and add it back to your normal rate. For instance, if you make $18 an hour, half of that is $9. Add them together ($18 + $9) to get your overtime rate of $27.
How to figure out time and half for salaried employees?
If you are a non-exempt salaried employee, you first need to find your hourly rate by dividing your weekly salary by 40. Once you have that hourly number, you can multiply it by 1.5 to figure out your time and half rate for any extra hours worked.
Is overtime calculated daily or weekly?
In most US states, overtime is based on a weekly total (over 40 hours). However, states like California, Alaska, and Nevada have daily overtime rules (e.g., over 8 hours in a day).
Does salary staff get overtime?
It depends. "Exempt" employees (usually management/professionals) do not get overtime. "Non-exempt" employees are entitled to overtime pay regardless of whether they are paid hourly or a salary.
Is overtime pay taxed higher?
No. Overtime pay is taxed at the same federal tax bracket rate as your regular income. However, because your paycheck is larger, more tax might be withheld upfront, but it balances out at tax return time.