Overtime Calculator

How to Use the Overtime Calculator

How to Calculate Overtime Pay

The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees at least 1.5 times their regular rate for every hour worked beyond 40 in a single workweek.

Example: An employee at $18/hour working 48 hours in a week — Regular pay: $18 × 40 = $720. Overtime: $18 × 1.5 × 8 = $216. Total: $936.

How to Calculate Overtime for Salaried Employees

For non-exempt salaried employees, calculate the regular hourly rate first: divide the weekly salary by the scheduled hours (usually 40). Then apply 1.5× to hours beyond 40. A $700/week salary = $17.50/hour. Overtime rate: $26.25/hour. Working 45 hours earns an additional $131.25.

Overtime Pay Rules by State

California Overtime Rules

California requires overtime for: hours over 8 in a single day, hours over 40 in a workweek, and double-time (2×) for hours over 12 in a day or for the seventh consecutive day of work in a week.

Alaska and Nevada

Both states require overtime for hours worked beyond 8 hours in a day, in addition to the standard 40-hour weekly threshold.

Other States

Most states follow the federal FLSA standard — overtime triggers only at 40 hours per week.

FLSA Overtime Exemptions

The FLSA exempts certain categories from overtime: executive (manages the business, directs 2+ employees, authority to hire/fire), administrative (non-manual work related to management, exercises independent judgment), and professional (learned professions requiring advanced knowledge — doctors, lawyers, engineers). All exemptions require a salary of at least $684/week.

How Overtime Affects Annual Income

Even modest overtime significantly boosts annual earnings. Just 5 hours of overtime per week at $20/hour ($30 OT rate) generates an extra $7,800/year gross. After taxes in the 22% bracket plus FICA, the after-tax value is roughly $5,200 — still a meaningful increase. Want to know exactly what you keep? Use our Overtime Tax Calculator.

Overtime rules differ significantly outside the US. South African employees are protected under the Basic Conditions of Employment Act (BCEA), which caps ordinary hours at 45 per week and requires overtime pay at 1.5× for the first 10 hours per week (and 2× on Sundays and public holidays). If you're calculating SA overtime, PAYE deductions, or take-home pay under South African law, PayTools — our South African salary and payroll calculator hub — has dedicated BCEA-compliant overtime and net pay tools.

How to Calculate Overtime Pay by Hand: Worked Example

Under the federal FLSA, overtime is 1.5× the regular rate for hours over 40 in a workweek. At a $22/hour rate working 48 hours: regular pay = 40 × $22 = $880; overtime pay = 8 × $22 × 1.5 = 8 × $33 = $264; total = $1,144 for the week.

How is overtime calculated when pay rates change during the week?

The FLSA requires a weighted average rate when hours are split across different pay rates. Suppose 30 hours at $20/hour and 18 hours at $25/hour in one 48-hour week. Total straight-time pay = (30 × $20) + (18 × $25) = $600 + $450 = $1,050. Divide by total hours: $1,050 ÷ 48 = $21.875 weighted average rate. Overtime premium owed = 8 hours × $21.875 × 0.5 = $87.50 (only the extra half, since the straight-time portion is already included in the $1,050). Total pay = $1,050 + $87.50 = $1,137.50.

Which Overtime Rules Vary by State?

How is California's daily overtime rule different?

California requires overtime after 8 hours in a single day, not just after 40 in a week, plus double time after 12 hours in a day. A worker doing four 12-hour shifts (48 hours total, under the federal 40-hour weekly trigger for the first 40) still earns overtime under California's daily rule for every hour past 8 each day — meaning California employees can owe overtime in a week where the federal FLSA test alone would show none.

Do salaried employees ever qualify for overtime?

Yes — job duties and salary level determine exemption, not job title. Employees classified "exempt" (commonly certain executive, administrative, or professional roles above a federal salary threshold) do not receive overtime; "non-exempt" salaried employees do, using their salary converted to an hourly rate (annual salary ÷ 52 ÷ standard hours) as the base for the 1.5× calculation.

Do Alaska and Nevada differ from the federal standard?

Alaska applies daily overtime after 8 hours similarly to California. Nevada requires daily overtime after 8 hours only for employees earning below a set multiple of the state minimum wage; above that threshold, the standard 40-hour weekly rule applies instead.

Frequently Asked Questions