How overtime pay is calculated
Overtime pay is your regular hourly rate multiplied by an overtime rate, most commonly one and a half. The calculation has three steps:
- Split your hours into regular hours and overtime hours at the threshold.
- Pay the regular hours at your normal rate.
- Pay the overtime hours at your rate times the multiplier.
Example. You work 45 hours at $20 an hour. The first 40 hours pay $800. The remaining 5 hours pay at $30 an hour — time and a half — which is $150. Your gross pay is $950.
When does overtime start?
Under the federal Fair Labor Standards Act, non-exempt employees must be paid at least one and a half times their regular rate for hours worked over 40 in a workweek. There is no federal daily overtime requirement, so a long single day is not automatically overtime.
Some states go further. California pays overtime after 8 hours in a day and double time after 12, with premium pay on the seventh consecutive day worked. Alaska and Nevada also have daily rules. Change the threshold and multiplier above to match whichever rule applies to you.
What counts as your regular rate
Your regular rate is not always just your base hourly wage. Non-discretionary bonuses, shift differentials and commissions generally have to be included when working out the overtime rate, which can make your true overtime rate higher than base times 1.5. If a large part of your pay comes from those sources, check your pay stub carefully.
Who does not get overtime
Employees classified as exempt — typically salaried workers in genuine executive, administrative or professional roles who earn above a salary threshold — are not entitled to overtime. Job title alone does not determine this; the duties actually performed and the salary level do. Misclassification is common, so if you are salaried and doing largely routine work it is worth looking into.
Daily overtime rules by state
Most states simply follow the federal 40-hour rule. A small number add a daily threshold, and those are the ones worth knowing about:
| State | Daily rule | Notes |
|---|---|---|
| California | 1.5x over 8, 2x over 12 | Plus premium pay on the 7th consecutive day in a workweek |
| Alaska | 1.5x over 8 | Generally applies to employers with four or more employees |
| Nevada | 1.5x over 8 in 24 hours | Only for employees earning under 1.5x the state minimum wage |
| Colorado | 1.5x over 12 | Also applies to 12 consecutive hours worked |
| Puerto Rico | 1.5x over 8 | |
| All other states | None | Weekly 40-hour rule only |
A few states also have industry-specific rules — Oregon, for example, sets daily limits in certain manufacturing settings. Where a state rule and the federal rule both apply, you get whichever is more generous, never both stacked on the same hour.
State rules change. This table is a starting point, not a legal determination — check your state labour department for the current position before relying on it.
Your regular rate is not always your base wage
Overtime is calculated on your regular rate of pay, which under federal rules is broader than your hourly wage. It generally has to include:
- Non-discretionary bonuses — production, attendance or performance bonuses promised in advance
- Shift differentials for nights, weekends or undesirable shifts
- Commissions
- The value of certain other payments tied to how much or how well you work
It generally excludes genuinely discretionary gifts, reimbursed expenses, paid time off and premium pay already paid at an overtime rate.
Why this matters. You earn $20 an hour, work 45 hours and receive a $100 production bonus. The bonus is spread across all 45 hours, raising your regular rate to about $22.22. Your overtime is then based on that higher figure, not on $20. Underpaid overtime on bonuses is one of the most common wage errors there is.
Working at two different rates
If you work at more than one pay rate in the same week — two roles, or a shift differential on some days — your overtime is normally based on the weighted average of those rates, not on whichever rate you happened to be earning during hour 41.
Add up all your straight-time earnings for the week, divide by total hours worked, and that average is your regular rate for overtime purposes. Some arrangements allow an alternative method if agreed in advance, but the weighted average is the default.
Who is entitled to overtime
Overtime rules apply to non-exempt employees. Employees classified as exempt are not entitled to it. Exemption generally requires all of the following, not just one:
- Payment on a salary basis
- A salary above the applicable threshold
- Job duties that genuinely fall within an exempt category — executive, administrative, professional, outside sales or certain computer roles
Being salaried is not by itself enough, and neither is a job title. What matters is the work actually performed. Misclassification is common, so if you are salaried, below the threshold, or doing largely routine work under close supervision, it is worth checking.
Quick reference: common weeks
| Hours | Rate | Regular | Overtime | Gross |
|---|---|---|---|---|
| 45 | $15.00 | $600.00 | $112.50 | $712.50 |
| 45 | $20.00 | $800.00 | $150.00 | $950.00 |
| 45 | $25.00 | $1,000.00 | $187.50 | $1,187.50 |
| 50 | $15.00 | $600.00 | $225.00 | $825.00 |
| 50 | $20.00 | $800.00 | $300.00 | $1,100.00 |
| 50 | $25.00 | $1,000.00 | $375.00 | $1,375.00 |
| 60 | $20.00 | $800.00 | $600.00 | $1,400.00 |
All figures are gross, at time and a half over 40 hours, before any deductions.
Checking a full week
If you want to enter your actual daily punches rather than a single total, the time card calculator applies these rules across a seven or fourteen day grid automatically. To total the hours first, use the hours calculator.
Common questions
How do I calculate time and a half?
Multiply your hourly rate by 1.5. At $20 an hour, time and a half is $30 an hour. Multiply that by your overtime hours to get your overtime pay.
How much is 45 hours at $20 an hour with overtime?
Forty regular hours pay $800, and the 5 overtime hours pay $30 each for $150. Gross pay is $950 before deductions.
Is overtime paid after 8 hours a day?
Not under federal law, which only requires overtime after 40 hours in a workweek. California, Alaska, Nevada and Puerto Rico have daily rules, and Colorado applies one after 12 hours.
What is double time?
Double time is twice your regular hourly rate. It is not required federally. California requires it after 12 hours in a workday and after 8 hours on the seventh consecutive day worked in a workweek.
Can my employer average two weeks together?
No. Overtime is assessed per workweek. Working 50 hours one week and 30 the next is 10 hours of overtime, not zero, even if the pay period covers both weeks.
Does a bonus change my overtime rate?
A non-discretionary bonus normally does. It is spread across the hours worked, which raises your regular rate, and your overtime is then calculated on that higher figure rather than your base wage.
Do salaried employees get overtime?
Some do. Being paid a salary does not by itself make you exempt. Exemption also requires a salary above the applicable threshold and job duties that genuinely fall within an exempt category. Job title alone never decides it.
Is overtime paid on holidays or weekends?
Not automatically under federal law. Weekend and holiday premiums are a matter of employer policy or contract. Only hours actually worked over the threshold trigger statutory overtime.
What if I work two different pay rates?
Your overtime is normally based on the weighted average of your rates for that week: total straight-time earnings divided by total hours worked.