Overtime Pay Calculator
Calculate overtime pay at 1.5x and 2x rates for hourly employees.
Formula
Overtime Pay = Regular Hourly Rate × 1.5 × Overtime Hours Total Pay = (Regular Rate × 40) + (Regular Rate × 1.5 × OT Hours)
How to Calculate
Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5 times their regular rate for hours worked beyond 40 in a workweek. Some states have additional requirements—California, for example, requires overtime after 8 hours in a single day and double-time after 12 hours.
The "regular rate" is not always the same as the hourly wage. It includes base pay plus non-discretionary bonuses, shift differentials, and certain other compensation, divided by total hours worked. This calculation catches many employers off guard when they realize bonuses increase the overtime rate.
For salaried non-exempt employees, divide the weekly salary by 40 to determine the regular rate, then apply the 1.5x multiplier for hours over 40. Note that the FLSA overtime threshold was updated—employees earning below a certain salary threshold ($43,888 annually as of 2024) must be classified as non-exempt and eligible for overtime, regardless of their duties.
Worked Example
An employee earns $25/hour and worked 52 hours this week.
Regular pay (40 hours): 40 × $25 = $1,000 Overtime hours: 52 − 40 = 12 hours Overtime rate: $25 × 1.5 = $37.50/hour Overtime pay: 12 × $37.50 = $450
Total gross pay: $1,000 + $450 = $1,450
In California, if the employee worked four 13-hour days: First 8 hours each day: regular rate ($25) Hours 8–12 each day: 1.5× rate ($37.50) Hours 12–13 each day: 2× rate ($50.00) Daily pay: (8 × $25) + (4 × $37.50) + (1 × $50) = $200 + $150 + $50 = $400
Why It Matters
Overtime compliance is a critical legal obligation. Misclassifying employees as exempt, miscalculating the regular rate, or failing to pay proper overtime are among the most common wage-and-hour violations, leading to costly lawsuits and Department of Labor penalties. Understanding overtime rules protects both employers and employees.
Practical Tips
- ✓Always include non-discretionary bonuses and shift differentials when calculating the regular rate for overtime.
- ✓Verify employee exempt/non-exempt classification annually—salary and duties tests change periodically.
- ✓Check your state's overtime laws—many states have stricter requirements than federal law.
- ✓Use time-tracking software to accurately capture all hours worked, including off-the-clock time.
Frequently Asked Questions
Who is exempt from overtime pay?
Does overtime apply to salaried employees?
Can an employer require mandatory overtime?
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