Overtime Pay Calculator
Calculate overtime earnings based on hours worked and pay rate.
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What is a Overtime Pay? An overtime pay calculator determines gross earnings when an employee works beyond the standard 40-hour workweek, applying the Fair Labor Standards Act (FLSA) requirement of at least 1.5 times the regular rate of pay for each hour worked over 40 in a workweek.
Rule of Thumb
Under federal law, any non-exempt employee who works more than 40 hours in a single workweek must be paid at least 1.5 times their regular hourly rate for each additional hour. Some states such as California also require double time (2x) for hours exceeding 12 in a single day.
Example Calculation
An employee earns $18 per hour and works 48 hours in a week. Regular pay: 40 hours x $18 = $720. Overtime pay: 8 hours x $27 (1.5 x $18) = $216. Total gross pay = $936 for the week.
Key Facts
- •The FLSA requires employers to pay non-exempt employees at least 1.5 times the regular rate for all hours worked over 40 in a single workweek; there is no federal requirement for overtime based on hours worked in a single day (US Department of Labor, FLSA Overtime, 2024).
- •As of July 1, 2024, the FLSA salary threshold for overtime exemption rose to $844 per week ($43,888 annually), meaning salaried workers earning below this amount must receive overtime regardless of their job duties (US Department of Labor, Final Rule, 2024).
- •California requires double time (2x regular rate) for hours worked beyond 12 in a single day and for all hours worked on the seventh consecutive day of a workweek beyond 8 hours, going further than federal law (California Labor Code, Section 510).
- •Misclassifying workers as exempt from overtime is one of the most common wage-and-hour violations investigated by the Department of Labor, resulting in over $230 million in back wages recovered for workers in fiscal year 2023 (US Department of Labor, WHD Annual Report, 2023).
Understanding Overtime Pay Calculator
Overtime pay is the additional compensation required by law when an eligible employee works more than 40 hours in a workweek. Under the federal Fair Labor Standards Act (FLSA), the minimum overtime rate is 1.5 times (time and a half) the employee's regular rate of pay. The key word is "regular rate," which is not just your base hourly wage. It includes certain bonuses and commissions paid that week, which can push the actual overtime rate higher than a simple 1.5x calculation. Not all workers are covered. The FLSA exempts certain executive, administrative, professional, and outside sales employees from overtime requirements, provided they meet both a salary threshold (currently $844 per week as of mid-2024) and a duties test. Just calling someone a "manager" or paying them a salary does not automatically exempt them from overtime. State laws can be more generous than federal law: California and several other states have daily overtime rules, and some jurisdictions require double time under specific conditions. Overtime wages are subject to regular income tax withholding, Social Security, and Medicare taxes, just like regular pay.
Tips and Best Practices
- 1Track your hours worked in a workweek precisely, including time spent answering emails or calls outside the office, since all compensable work time counts toward the 40-hour overtime threshold under the FLSA.
- 2If you are a salaried employee earning under $43,888 per year (as of 2024), confirm with your HR department whether you are classified as exempt or non-exempt, since you may be entitled to overtime pay regardless of your job title.
- 3Understand that your employer can set any regular schedule, including four 10-hour days, without triggering federal overtime, since the FLSA threshold is based on total hours in a workweek, not hours in a single day (except in states like California with daily overtime rules).
- 4Keep your own records of hours worked separately from your employer's timekeeping system, since in a wage dispute the burden of proof lies with the employer to show accurate records, but having your own log strengthens any claim you may need to make.
Real-World Example
David works as a warehouse supervisor earning $22 per hour. In a busy holiday week he works his standard 40 hours plus 12 hours of overtime. His regular pay for the week is 40 x $22 = $880. His overtime rate is $22 x 1.5 = $33 per hour. His overtime pay is 12 x $33 = $396. Total gross pay for the week = $880 + $396 = $1,276. Compared to a week with no overtime where he earns $880, the 12 extra hours added $396 to his paycheck, an effective extra rate of $33 per hour before taxes.
Common Mistakes to Avoid
- Assuming salaried employees are automatically exempt from overtime, when in reality salary alone does not create an exemption under the FLSA unless the employee also meets a specific duties test and earns above the salary threshold.
- Forgetting that the overtime threshold is based on a single workweek (Sunday through Saturday, or any fixed 7-day period the employer designates), so working 50 hours one week and 30 the next does not average out to 40 hours for overtime purposes.
- Not accounting for nondiscretionary bonuses (production bonuses, attendance bonuses, commissions) when calculating the regular rate of pay, which must be included in the base used to compute the overtime rate under FLSA rules.
How to Use
- Enter your regular hourly rate.
- Enter regular and overtime hours worked.
- Select overtime multiplier.
- Click Calculate.
Formula
Overtime Pay = Hourly Rate x 1.5 x Overtime HoursFrequently Asked Questions
What is the overtime rate?
Does double time apply?
Are salaried workers eligible for overtime?
How is overtime taxed?