How to Calculate Overtime Pay
Overtime pay is overtime hours × regular rate × 1.5. Under federal law every hour over 40 in a workweek counts; some states, like California, also count hours over 8 in a day. Here is how to work it out, with examples.
The formula
- Add up the hours worked in the workweek (a fixed 7-day period your employer sets).
- Overtime hours = hours worked − 40.
- Overtime rate = regular rate × 1.5 ("time and a half").
- Overtime pay = overtime hours × overtime rate.
- Total pay = 40 × regular rate + overtime pay.
Example: 50 hours at $20 an hour. Overtime hours = 10. Overtime rate = $30. Overtime pay = $300.00. Total = 40 × $20 + $300.00 = $1,100.00.
| Hourly rate | Time and a half | Double time | 5 OT hours | 10 OT hours |
|---|---|---|---|---|
| $12.00 | $18.00 | $24.00 | $90.00 | $180.00 |
| $15.00 | $22.50 | $30.00 | $112.50 | $225.00 |
| $18.00 | $27.00 | $36.00 | $135.00 | $270.00 |
| $20.00 | $30.00 | $40.00 | $150.00 | $300.00 |
| $25.00 | $37.50 | $50.00 | $187.50 | $375.00 |
| $30.00 | $45.00 | $60.00 | $225.00 | $450.00 |
| $40.00 | $60.00 | $80.00 | $300.00 | $600.00 |
- Regular hours
- 40:00 → $800.00
- Overtime hours
- 8:00 × 1.5 → $240.00
- Overtime pay
- $240.00
What counts as hours worked
- Time on the clock, including short rest breaks of 5–20 minutes.
- Work done before or after the shift if the employer allows it (answering email, setting up, closing).
- Not counted: bona fide meal breaks of 30 minutes or more when you are fully relieved of duty.
- Not counted toward the 40 hours under federal law: paid holidays, vacation and sick time that you did not work.
The workweek is fixed. You cannot average two weeks: 45 hours in one week and 35 in the next is 5 hours of overtime, even though the two weeks add up to 80.
The regular rate is more than your hourly wage
Overtime is 1.5 times the *regular rate*, and the regular rate includes most extra pay: shift differentials, non-discretionary bonuses (production, attendance, safety bonuses) and commissions. Two common cases:
Two jobs at different rates in the same week
You work 30 hours at $18.00 and 15 hours at $24.00 for the same employer. Straight-time pay is $900.00 for 45 hours, so the regular rate is $900.00 ÷ 45 = $20.00. The 5 overtime hours earn an extra half rate: 5 × $10.00 = $50.00. Total pay: $950.00.
A production bonus
46 hours at $16 plus a $100 production bonus. Straight-time pay = 46 × $16 + $100 = $836.00. Regular rate = $836.00 ÷ 46 = $18.17. Overtime premium = 6 × $9.09 = $54.52. Total = $890.52. Without the bonus in the rate the premium would be only $48.00.
Overtime laws by state
Federal law sets the floor. A few states add daily overtime or double time:
| State | Overtime | Double time |
|---|---|---|
| Federal (all states) | Over 40 hours in a workweek | — |
| California | Over 8 hours in a day, over 40 in a week, first 8 hours on the 7th consecutive day | Over 12 hours in a day; over 8 hours on the 7th consecutive day |
| Alaska | Over 8 hours in a day or 40 in a week (employers with 4+ employees) | — |
| Nevada | Over 8 hours in a 24-hour period if paid under 1.5× minimum wage; over 40 a week | — |
| Colorado | Over 12 hours in a day, 12 consecutive hours, or 40 a week | — |
California overtime, step by step
A 13-hour day in California: the first 8 hours are regular (8:00), hours 9–12 are paid at 1.5× (4:00), and the 13th hour at 2× (1:00). At $20 that day pays $320.00.
Five 10-hour days: each day has 2 hours of daily overtime, 10:00 in total — the same as the federal rule, because the weekly hours over 40 are already counted as daily overtime. Working all seven days changes the picture: six 8-hour days and a 10-hour seventh day give 40:00 regular, 16:00 at 1.5× and 2:00 at 2×.
The time card calculator applies these rules day by day: pick "California" as the overtime rule.
Who is not owed overtime
Exempt employees — paid a salary of at least $684 a week and doing executive, administrative or professional duties — are not owed overtime. So are some specific jobs (outside sales, certain computer professionals, some transportation workers). Being paid a salary alone does not make you exempt; the duties test matters.
Overtime for salaried non-exempt employees
Being paid a salary does not take away overtime if you are non-exempt. Your regular rate is the weekly salary divided by the hours it is meant to cover. A $1,000 weekly salary for 40 hours is $25 an hour; a 46-hour week adds 6 × $37.50 = $225.00 of overtime, for $1,225.00 in total.
Shift differentials and overtime
Night or weekend differentials are part of the regular rate. Say you earn $18 an hour plus a $2 night differential for 20 of your 45 hours. Straight-time pay = 45 × $18 + 20 × $2 = $850.00; regular rate = $18.89; overtime premium = 5 × $9.44 = $47.22. Leaving the differential out would shortchange you by $2.22.
Overtime on a biweekly paycheck
Pay periods do not change the workweek rule. Say you work 45 hours in week one and 35 in week two at $20 an hour. The paycheck covers 80 hours, but week one has 5 hours of overtime: $950.00 for week one plus $700.00 for week two = $1,650.00, not 80 × $20 = $1,600.00.
How to check your paycheck
- Add up the hours you actually worked in each workweek of the pay period.
- Split each week into the first 40 hours and the rest (plus daily overtime where your state has it).
- Work out your regular rate, including differentials and non-discretionary bonuses.
- Multiply: regular hours × rate, overtime hours × 1.5 × rate.
- Compare with the gross pay on your pay stub; ask payroll about any difference, and keep your own time records.
Common mistakes
- Averaging hours over two weeks — overtime is counted per workweek.
- Using the base wage instead of the regular rate when there are bonuses or shift differentials.
- Counting 7:45 as 7.45 hours — it is 7.75. Convert with the minutes to decimal chart.
- Paying "comp time" instead of overtime in the private sector — only public employers may do that.
Frequently asked questions
How do you calculate overtime pay?
Multiply the overtime hours by 1.5 times your regular rate, then add your pay for the first 40 hours.
What is time and a half of $15?
$22.50 an hour.
Is overtime calculated daily or weekly?
Weekly under federal law (over 40 hours). California, Alaska, Nevada and Colorado also have daily rules.
Do holidays count toward overtime?
Not under federal law, unless your employer’s policy says so. Only hours actually worked count toward the 40.
What is double time?
Pay at twice the regular rate. Federal law never requires it; California does for hours over 12 in a day and over 8 on the seventh consecutive workday. Some union contracts pay double time on Sundays or holidays.
Can I be paid comp time instead of overtime?
Not in the private sector: overtime must be paid in money in the same pay period. Only state and local government employers may give compensatory time off, at 1.5 hours for each overtime hour.