How this calculator works
Overtime pay in the United States is governed by the Fair Labor Standards Act (FLSA). The basic rule: non-exempt employees must be paid 1.5x their regular rate for any hours worked over 40 in a workweek. Some states (California, Alaska, Nevada) require daily overtime or double-time after certain thresholds. This calculator uses federal FLSA rules by default, with state-specific variations noted in the FAQ.
Enter your regular hourly rate, regular hours worked (up to 40), and overtime hours (over 40). The calculator shows regular pay, overtime pay (at 1.5x), and total gross pay for the week. For salaried non-exempt employees, compute the regular rate first (salary / hours worked), then apply overtime.
Important: not all employees are entitled to overtime. 'Exempt' employees (typically executives, professionals, and certain administrative roles earning above $684/week federally) are not eligible for overtime regardless of hours worked. Misclassifying employees as exempt to avoid overtime pay is a costly violation — penalties include back wages plus damages, often doubled or tripled.
The formula
Regular Pay = Regular Hours x Hourly Rate
Overtime Pay = Overtime Hours x Hourly Rate x 1.5
Double-time Pay = Double-time Hours x Hourly Rate x 2.0
Total Pay = Regular Pay + Overtime Pay + Double-time Pay
Regular Rate (salaried) = Weekly Salary / Hours Worked
Worked example
A non-exempt worker earns $22/hour and works 48 hours in a week. Regular pay = 40 x $22 = $880. Overtime pay = 8 x $22 x 1.5 = $264. Total gross pay = $1,144. Without overtime pay, they'd earn only $1,056 — the $88 difference is the FLSA premium. Over a year of 48-hour weeks, that's $4,576 in additional legally-required pay.
In California (daily overtime): same worker, 10-hour day, 5 days = 50 hours. Regular pay = 40 x $22 = $880. Daily overtime (over 8 hours/day) = 2 hours/day x 5 days x $22 x 1.5 = $330. Weekly overtime (over 40) = 10 hours x $22 x 1.5 = $330 (but 10 of those hours already counted as daily OT). Double-time (over 12 hours/day) = 0. Total = $880 + $330 + $110 (remaining weekly OT) = $1,320. California rules add $176 vs federal.
Methodology and sources
The FLSA, enacted in 1938, established the 40-hour workweek and the 1.5x overtime premium. The law applies to most employees of employers with $500,000+ in annual revenue or engaged in interstate commerce. The 1.5x premium applies to all hours over 40 in a workweek, defined as any fixed, recurring 168-hour period.
State variations: California requires 1.5x for hours over 8/day or 40/week, and 2.0x for hours over 12/day or over 8 on the 7th consecutive day. Alaska, Nevada, and Puerto Rico have daily overtime rules. Some states (Colorado, Maine) have higher salary thresholds for exemption than federal.
Exempt vs non-exempt: Exempt employees (executive, administrative, professional, computer, outside sales) must earn at least $684/week (federal, 2024) on a salary basis and perform specific duties. Earning a salary alone doesn't make you exempt — the duties test must be met.
Sources: FLSA regulations (29 CFR Part 541); Department of Labor Wage and Hour Division; state labor codes.
Industry benchmarks
Overtime thresholds by jurisdiction (2024):
- Federal (FLSA): 1.5x for hours over 40/week. Exemption salary threshold: $684/week ($35,568/year).
- California: 1.5x over 8 hours/day or 40/week; 2.0x over 12 hours/day or over 8 on 7th consecutive day. Exemption salary: 2x state minimum wage (effectively $66,560/year in 2024).
- Alaska: 1.5x over 8 hours/day or 40/week. Exemption salary: $780/week.
- Nevada: 1.5x over 8 hours/day or 40/week (if earning under 1.5x minimum wage).
- Colorado: 1.5x over 12 hours/day or 40/week. Exemption salary: $1,057.69/week.
- Maine: Exemption salary: $41,060/year (rising to $58,000+ by 2026).
- New York: Exemption salary: $1,200/week (NYC/Long Island), $1,064.25/week (rest of state).
Always check your state's labor code — rules vary and change frequently.
Common mistakes to avoid
Mistake 1: Misclassifying employees as exempt. Exemption requires both salary basis AND specific duties. A salaried employee who does routine work isn't exempt. Misclassification triggers back wages plus penalties.
Mistake 2: Not paying for 'off-the-clock' work. Email after hours, prep time before shift, mandatory meetings — all must be paid. Not paying is a FLSA violation.
Mistake 3: Using comp time instead of overtime. Private-sector non-exempt employees must be paid overtime in cash, not comp time. Public-sector employees have limited comp time options.
Mistake 4: Forgetting to include bonuses in regular rate. Non-discretionary bonuses must be included in the regular rate for overtime calculations, increasing overtime pay retroactively.
Mistake 5: Averaging hours across weeks. FLSA uses a single workweek — you can't average 30 hours one week with 50 hours the next to avoid overtime. Each week stands alone.
When to use this calculator
Use this calculator for weekly payroll processing, employee pay verification, and FLSA compliance. Employees should use it to verify their paychecks; employers should use it to ensure compliance. For salaried non-exempt employees, compute the regular rate first (weekly salary / 40 hours), then apply overtime.
For job offer evaluation, compute total compensation including expected overtime. A $20/hour job with 10 hours/week overtime ($1,100/week gross) may pay more than a $25/hour job with no overtime ($1,000/week gross).
Related metrics and alternatives
Regular rate calculator: For complex scenarios with bonuses, shifts, or multiple rates.
Salary-to-hourly converter: Converts annual salary to hourly rate for overtime computation.
Time card calculator: Tracks daily hours and computes weekly pay with overtime.
Paycheck calculator: Shows take-home pay after taxes and deductions.
Shift differential calculator: Computes pay with shift premiums (nights, weekends, holidays).
How to interpret the results
Overtime premium > 20% of regular pay: Significant overtime. Common in construction, healthcare, manufacturing. Verify sustainability — burned-out employees make mistakes.
Overtime premium 5-20% of regular pay: Moderate overtime. Typical for seasonal work or project-based industries.
Overtime premium < 5% of regular pay: Minimal overtime. Healthy work-life balance, or underemployed.
Employee regularly works 50+ hours: Consider whether role should be exempt (if duties qualify) or whether additional staffing is needed. Chronic high overtime signals understaffing.
State vs federal overtime: California, Alaska, and Nevada require daily overtime that federal doesn't. Always use the rule most favorable to the employee (state or federal).