How is overtime pay calculated?

Under the FLSA, overtime pay equals your regular hourly rate multiplied by 1.5 for every hour worked beyond 40 in a workweek. Formula: Overtime Pay = (Regular Rate × 1.5) × Overtime Hours.

Do all employees qualify for overtime pay?

No. Non-exempt workers are entitled to overtime. Exempt employees — typically salaried professionals, executives, or administrators earning above $684/week — are not entitled to FLSA overtime.

How many hours of overtime can an employer require?

Federal law does not cap overtime hours. Employers can require as much overtime as needed for non-exempt adult employees, as long as they pay time-and-a-half.

Is overtime calculated daily or weekly?

Federal FLSA overtime is calculated weekly — only hours over 40 per workweek trigger overtime. California, Alaska, and Nevada also require daily overtime for hours beyond 8 in a single day.

Overtime Calculator — Overtime Pay & Hours

🕐 Overtime Calculator

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Gross pay before taxes. To see after-tax overtime, use the Overtime Tax 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.

📐 Overtime Pay Formula

Overtime Rate = Regular Hourly Rate × 1.5
Overtime Pay = Overtime Rate × Overtime Hours
Total Weekly Gross = (Regular Rate × Regular Hours) + Overtime Pay

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.

Frequently Asked Questions

Q.What is the federal overtime rate?▼

The federal overtime rate under the FLSA is 1.5 times (time-and-a-half) the employee's regular rate for all hours worked over 40 in a workweek. There is no federal requirement for double-time pay, though some states and union contracts require it for certain shifts.

Q.Does overtime reset every week?▼

Yes. Under the FLSA, overtime is calculated on a workweek basis — a fixed, regularly recurring period of 168 hours (seven consecutive 24-hour periods). Overtime hours do not carry forward across pay periods. A biweekly paycheck must calculate overtime separately for each of the two workweeks it covers.

Q.Can an employer refuse to pay overtime?▼

If you are a non-exempt employee under the FLSA, your employer must pay overtime for all hours over 40 per workweek. They cannot refuse, cap it contractually, or substitute comp time (comp time is only permitted for state and local government employees). Unpaid overtime is a wage theft violation that can result in back-pay awards plus liquidated damages.

Q.How do shift differentials interact with overtime?▼

Shift differentials (extra pay for nights, weekends, or hazardous conditions) must generally be included in the regular rate calculation for overtime purposes. If you earn $18/hour with a $2/hour night differential, your regular rate for overtime purposes is $20/hour — making your overtime rate $30/hour, not $27.

Q.Does overtime pay count toward retirement contributions?▼

It depends on your plan. Many 401(k) plans define "compensation" to include overtime pay, so contributions are calculated on total gross including overtime. However, some plans exclude overtime. Check your plan's Summary Plan Description (SPD) to confirm.

⚠️ Disclaimer Estimates for informational purposes only. Not legal or financial advice. Consult a qualified professional.