Overtime Calculator

How Overtime Pay Works

Overtime pay compensates employees for working beyond their standard scheduled hours. In the United States, the Fair Labor Standards Act (FLSA) requires employers to pay non-exempt workers at least 1.5 times their regular hourly rate for every hour worked over 40 in a workweek. Some employers or union contracts offer double time (2x) for holidays, weekends, or excessive hours.

Calculating Overtime Pay

The overtime calculation has two parts. First, determine how many hours qualify as overtime by subtracting the standard workweek threshold (usually 40 hours) from total hours worked. Any hours at or below the threshold are paid at the regular rate. Hours above the threshold are multiplied by the overtime rate.

For example, if you earn $25/hour and work 48 hours in a week with a 1.5x multiplier: your regular pay is 40 x $25 = $1,000, your overtime pay is 8 x $25 x 1.5 = $300, and your total weekly pay is $1,300. Your effective hourly rate for the week becomes $1,300 / 48 = $27.08.

State-Level Variations

Several states go beyond federal requirements. California mandates daily overtime after 8 hours and double time after 12 hours in a single day, plus double time for hours beyond 8 on the seventh consecutive workday. Colorado requires overtime after 12 hours in a day or 40 hours in a week. Alaska triggers overtime after 8 hours per day for employers with four or more employees.

Who Qualifies for Overtime

Most hourly workers are entitled to overtime. Salaried employees may also qualify unless they meet specific exemption criteria based on salary level and job duties. Common exemptions include executive, administrative, and professional roles above the salary threshold. Independent contractors and certain agricultural workers are also typically excluded from overtime protections.