Overtime CalculatorCalculate Overtime Hours & Pay Under FLSA Rules
Under the Fair Labor Standards Act (FLSA), overtime pay equals 1.5 times an employee's regular hourly rate for every hour worked beyond 40 in a workweek. Enter your hours and rate in the calculator below to instantly compute your regular pay, overtime pay at 1.5× or 2× rates, and total gross earnings. This tool supports federal, California, and custom daily or weekly overtime thresholds.
Key Overtime Facts (2026): The federal overtime threshold is 40 hours per workweek at 1.5× the regular rate (FLSA Section 7(a)). States like California, Alaska, Nevada, and Colorado also enforce daily overtime. The current federal salary exemption threshold is $684/week ($35,568/year) after a court vacated the DOL's 2024 increase. Use the calculator below or read the step-by-step guide to compute overtime manually.
What Is Overtime and How Is It Calculated Under the FLSA?
Overtime is the additional compensation an employer must pay a non-exempt employee for hours worked beyond the standard threshold in a workweek. Under the federal Fair Labor Standards Act (FLSA), the standard threshold is 40 hours per workweek, and overtime must be paid at a rate of at least 1.5 times the employee's regular rate of pay.
Key Takeaway: If you are a non-exempt employee and work more than 40 hours in a workweek, your employer is required by federal law to pay you at least 1.5× your regular hourly rate for every hour beyond 40. Some states go further with daily overtime rules and double-time requirements.
The FLSA, enacted in 1938, is administered by the U.S. Department of Labor's Wage and Hour Division. Section 7(a) of the FLSA establishes that covered, non-exempt employees must receive overtime pay for hours worked in excess of 40 in a workweek. A workweek is defined as any fixed, recurring period of 168 hours — seven consecutive 24-hour periods. It does not need to align with the calendar week and can begin on any day and at any hour.
The overtime premium — commonly called "time and a half" — means multiplying the employee's regular rate of pay by 1.5. The regulations in 29 CFR Part 778 detail how to determine the "regular rate," which can include not just the hourly wage but also non-discretionary bonuses, shift differentials, and certain other forms of compensation. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest unless those hours push the employee past 40 for the workweek.
How Do You Calculate Overtime Pay Step by Step?
To calculate overtime pay, multiply your overtime hours (hours worked beyond 40 per week) by 1.5 times your regular hourly rate, then add the result to your regular pay. The formula is: Total Pay = (40 × Regular Rate) + (Overtime Hours × Regular Rate × 1.5). Follow the five steps below for the complete method.
Calculating overtime pay follows a straightforward process once you know the employee's regular rate and the applicable overtime threshold.
1Determine the Regular Hourly Rate
For hourly employees, this is typically the base wage. For salaried non-exempt employees, divide the weekly salary by the number of hours the salary is intended to cover (usually 40). If the employee receives non-discretionary bonuses, these must be factored into the regular rate calculation per 29 CFR § 778.209.
2Calculate the Overtime Rate
Multiply the regular hourly rate by 1.5. For example, if the regular rate is $20.00 per hour, the overtime rate is $20.00 × 1.5 = $30.00 per hour.
3Count Hours Worked in the Workweek
Total all compensable hours worked during the workweek. This includes time spent on employer-directed tasks, mandatory training, and certain on-call time. Break periods under 20 minutes are also compensable under FLSA guidelines.
4Separate Regular and Overtime Hours
The first 40 hours are regular hours. Any hours beyond 40 are overtime hours. If a state imposes daily overtime (like California), you must also count daily overtime hours separately.
5Compute Total Pay
Multiply regular hours by the regular rate and overtime hours by the overtime rate. Add both amounts for total gross pay.
Overtime hours: 5 × ($20.00 × 1.5) = 5 × $30.00 = $150.00
Total gross pay: $800.00 + $150.00 = $950.00
Effective hourly rate: $950.00 ÷ 45 = $21.11/hr
Use our time addition calculator to sum your daily hours before entering them in the overtime calculator, or our timesheet calculator to compute your full weekly timesheet automatically.
What States Have Daily Overtime Rules?
California, Alaska, Nevada, and Colorado have daily overtime laws that require overtime pay when an employee exceeds a set number of hours in a single workday — regardless of total weekly hours. California has the most comprehensive rules, requiring 1.5× pay after 8 hours and 2× pay after 12 hours per day.
While the federal FLSA only requires overtime after 40 hours per workweek, these states impose additional daily overtime requirements. In these states, employees can earn overtime pay even if their total weekly hours stay under 40, provided they exceed the daily threshold on any individual workday.
| State | Daily OT Threshold | OT Rate | Daily Double-Time |
|---|---|---|---|
| California | > 8 hrs/day | 1.5× regular rate | > 12 hrs/day at 2× |
| Alaska | > 8 hrs/day | 1.5× regular rate | None |
| Nevada | > 8 hrs/day* | 1.5× regular rate | None |
| Colorado | > 12 hrs/day or 12 consecutive hrs | 1.5× regular rate | None |
*Nevada daily overtime applies to employees earning less than 1.5 times the state minimum wage.
California Overtime in Detail
California has the most comprehensive daily overtime law in the country. Non-exempt employees in California are entitled to overtime at 1.5× their regular rate for hours worked beyond 8 in a single workday, and double time (2×) for hours beyond 12 in a single workday. Additionally, California requires 1.5× pay for the first 8 hours worked on the seventh consecutive day in a workweek, and 2× pay for hours beyond 8 on that seventh consecutive day. These provisions are in addition to the standard 40-hour weekly overtime requirement.
Important: This calculator is an educational tool and does not constitute legal advice. State overtime laws are complex and may include industry-specific exemptions. Consult your state Department of Labor or a qualified employment attorney for guidance specific to your situation.
Who Is Exempt From Overtime Pay?
Employees in executive, administrative, professional, outside sales, and certain computer roles are exempt from FLSA overtime if they earn at least $684 per week ($35,568/year) on a salary basis and meet specific duties tests under 29 CFR Part 541. Employees who do not meet both the salary and duties requirements are non-exempt and must receive overtime.
The FLSA provides several exemptions under 29 CFR Part 541, commonly known as the "white-collar" exemptions. To qualify as exempt, an employee must generally meet three tests: a salary basis test, a salary level test, and a duties test.
Salary Level Test
The current federal minimum salary for the executive, administrative, and professional (EAP) exemptions is $684 per week ($35,568 per year). The Department of Labor's April 2024 final rule, which would have increased this threshold to $1,128 per week ($58,656 per year) by January 2025, was vacated by a federal court in the Eastern District of Texas on November 15, 2024. As a result, the 2019 threshold of $684 per week remains in effect. Several states, including California, Colorado, New York, and Washington, enforce higher salary thresholds under their own laws.
Exempt Categories Under the FLSA
| Exemption Category | Primary Duty Requirement |
|---|---|
| Executive | Management of the enterprise or a recognized department; regularly directs the work of at least two full-time employees |
| Administrative | Office or non-manual work related to management or business operations; exercises discretion and independent judgment on significant matters |
| Professional | Work requiring advanced knowledge in a field of science or learning, customarily acquired by prolonged specialized study |
| Outside Sales | Primary duty of making sales or obtaining orders away from the employer's place of business; no salary requirement |
| Computer Employee | Systems analysis, programming, or software engineering; may be paid hourly at a rate of at least $27.63/hr in lieu of salary |
There is also a highly compensated employee (HCE) exemption for those earning at least $107,432 per year (the 2019 level remains in effect), provided they perform at least one exempt duty and meet the salary basis test. For full details, see the DOL's overtime information page.
What Are Common Overtime Calculation Mistakes?
The five most common overtime calculation mistakes are: failing to include all compensable time, not factoring bonuses into the regular rate, applying the wrong state or federal threshold, averaging hours across biweekly pay periods, and using rounding practices that consistently favor the employer. Each of these can trigger FLSA violations and back-pay liability.
Overtime calculation errors can result in underpayment, back-pay claims, and penalties from the Department of Labor. Below are the details on each of these frequent mistakes.
Frequently Asked Questions About Overtime
Under the FLSA, non-exempt employees must receive overtime pay at a rate of at least 1.5 times their regular rate of pay for every hour worked beyond 40 in a workweek. The workweek is defined as any fixed, recurring period of 168 hours (seven consecutive 24-hour periods) and can begin on any day and at any hour. Overtime must be calculated on a workweek basis — you cannot average hours over two or more weeks.
Time and a half means 1.5 times the employee's regular hourly rate of pay. For example, an employee earning $20 per hour would receive $30 per hour ($20 × 1.5) for each overtime hour. The "regular rate" may be higher than the base hourly wage if the employee also receives non-discretionary bonuses or shift premiums during the workweek.
Most hourly and salaried employees qualify for overtime pay under the FLSA. The primary exceptions are employees classified as "exempt" — executive, administrative, professional, outside sales, and certain computer employees — who must earn at least $684 per week ($35,568 per year) on a salary basis and meet specific duties tests. If you earn less than this threshold or your job duties do not meet the exemption criteria, you are likely entitled to overtime.
California requires overtime at 1.5× the regular rate for hours worked beyond 8 in a single workday, double time (2×) for hours beyond 12 in a workday, and overtime at 1.5× for the first 8 hours on a seventh consecutive workday. Hours beyond 8 on the seventh consecutive day earn double time. The federal FLSA, by contrast, only requires overtime after 40 hours in a workweek and has no daily overtime or double-time provisions.
Yes, the FLSA permits — but does not require — employers to round employee time to the nearest 5, 6, or 15 minutes, as outlined in 29 CFR § 785.48(b). However, the rounding practice must be neutral over time. If rounding consistently reduces employee hours or pay, it violates the FLSA. Some states, such as California, have additional restrictions on rounding, and courts have increasingly scrutinized rounding practices.
The current federal minimum salary for overtime exemption under the FLSA is $684 per week ($35,568 per year). The DOL's April 2024 rule that would have raised this to $1,128 per week was vacated by a federal court in November 2024. Several states enforce higher thresholds — for example, California requires exempt employees to earn at least twice the state minimum wage for a 40-hour workweek, which translates to $1,352 per week ($70,304 per year) as of January 2026.
Overtime must be calculated on a workweek basis, not a pay-period basis. Even if your pay period covers two weeks, each individual workweek within that period must be evaluated separately for overtime purposes. For example, if you work 50 hours in Week 1 and 30 hours in Week 2, you have 10 overtime hours in Week 1, even though the two-week total averages to 40 hours per week. Employers cannot average hours across workweeks to avoid paying overtime.
Being salaried does not automatically make an employee exempt from overtime. Salaried employees who earn less than $684 per week or whose job duties do not meet the executive, administrative, or professional duties tests are classified as "non-exempt" and must receive overtime pay. To determine the overtime rate for a salaried non-exempt employee, divide the weekly salary by the number of hours the salary is intended to cover (typically 40) to find the regular hourly rate, then multiply by 1.5 for the overtime rate.
The FLSA requires employers to keep accurate records of hours worked by non-exempt employees. Common tracking methods include manual paper timesheets, mechanical punch clocks, digital time-tracking software, and biometric systems. Under 29 CFR § 516.2, employers must retain payroll records, including daily and weekly hours worked, for at least three years. Employees should also keep their own records as a safeguard.
Double-time pay means the employee earns twice (2×) their regular hourly rate. There is no federal requirement for double-time pay under the FLSA. However, California requires double-time pay for hours worked beyond 12 in a single workday and for hours worked beyond 8 on a seventh consecutive workday. Some collective bargaining agreements and employer policies also provide double-time rates for holidays or other specific circumstances.
The standard overtime pay formula is: Overtime Pay = Overtime Hours × (Regular Hourly Rate × 1.5). For total gross pay, add the regular pay to the overtime pay: Total Pay = (Regular Hours × Regular Rate) + (Overtime Hours × Regular Rate × 1.5). For example, an employee earning $20/hr who works 45 hours earns (40 × $20) + (5 × $30) = $950 total.
Overtime pay is taxed as ordinary income at the same federal and state income tax rates as regular wages. However, because overtime increases your total paycheck, your employer may withhold taxes at a higher rate for that pay period. Additionally, the One Big Beautiful Bill Act, signed into law in July 2025, introduced a federal income tax deduction for qualifying overtime pay (the 0.5× premium portion of the 1.5× rate). Eligible workers can deduct up to $12,500 for single filers ($25,000 for joint filers), with phaseout starting at $150,000 modified adjusted gross income ($300,000 for joint filers). This deduction is temporary, applying only to tax years 2025 through 2028, and is retroactive to January 1, 2025.
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Last updated: February 7, 2026