The federal overtime rule
Under the Fair Labor Standards Act, 29 U.S.C. 207(a)(1), a non-exempt employee must be paid at least 1.5 times the regular rate of pay for all hours over 40 in a workweek. Four points decide how that rule applies:
- Workweek. A fixed, regularly recurring period of 168 hours, seven consecutive 24-hour periods. It may begin on any day and hour but cannot be shifted to avoid overtime. Each workweek stands alone; hours are never averaged across two weeks or a pay period.
- Threshold. Only hours over 40 in that workweek count. Federal law has no daily overtime.
- Regular rate. Not necessarily the base hourly wage. It includes non-discretionary bonuses, shift differentials and similar payments (29 CFR 778.107 and following), divided by the hours they cover.
- Coverage. Only non-exempt employees. Exempt employees, who meet the salary and duties tests, are not owed overtime. The FLSA overtime guide explains the distinction.
Worked example: $25 an hour, 46 hours
- Regular pay: 40 × $25 = $1,000
- Overtime rate: $25 × 1.5 = $37.50
- Overtime pay: 6 × $37.50 = $225
- Gross for the week: $1,225
With a non-discretionary bonus
Same week, plus a $92 production bonus. Total straight-time pay is 46 × $25 + $92 = $1,242. Regular rate = $1,242 ÷ 46 = $27. The overtime premium is half the regular rate for each overtime hour: 6 × $13.50 = $81. Gross = $1,242 + $81 = $1,323, compared with $1,317 if the bonus were ignored in the rate.
California daily overtime
California Labor Code 510 adds daily thresholds and a seventh-day rule for non-exempt employees:
| Situation | Rate |
|---|---|
| Hours over 8 in a workday, up to 12 | 1.5 times |
| Hours over 12 in a workday | 2 times |
| Hours over 40 in a workweek (excluding hours already paid as daily overtime) | 1.5 times |
| Seventh consecutive day of the workweek, first 8 hours | 1.5 times |
| Seventh consecutive day, hours over 8 | 2 times |
Example: a 10-hour day at $25
8 × $25 + 2 × $37.50 = $200 + $75 = $275. Under federal law alone, the same day would be $250 unless the week exceeded 40 hours.
Example: a 14-hour day at $25
8 × $25 + 4 × $37.50 + 2 × $50 = $200 + $150 + $100 = $450.
Example: seventh consecutive day, 10 hours at $25
8 × $37.50 + 2 × $50 = $300 + $100 = $400.
No pyramiding
Overtime is never paid twice on the same hour. Determine daily overtime first (over 8, over 12, seventh day), then apply the weekly rule only to hours that were not already daily overtime. A week of five 10-hour days is 50 hours: 10 are daily overtime at 1.5 times, and the remaining 40 straight-time hours do not exceed 40, so no additional weekly overtime arises. Pay = 40 × $25 + 10 × $37.50 = $1,375. An alternative workweek schedule adopted under Labor Code 511 can allow up to 10 hours a day without daily overtime.
Time and a half and double time rates
| Regular rate | Time and a half | Double time |
|---|---|---|
| $10 | $15.00 | $20 |
| $12 | $18.00 | $24 |
| $15 | $22.50 | $30 |
| $18 | $27.00 | $36 |
| $20 | $30.00 | $40 |
| $22 | $33.00 | $44 |
| $25 | $37.50 | $50 |
| $30 | $45.00 | $60 |
| $35 | $52.50 | $70 |
| $40 | $60.00 | $80 |
| $45 | $67.50 | $90 |
| $50 | $75.00 | $100 |
| $60 | $90.00 | $120 |
Time and a half is the regular rate multiplied by 1.5; double time is the regular rate multiplied by 2. Federal law requires only time and a half. Double time is a California requirement in the situations above and otherwise a matter of contract or employer policy, for example for holidays.
Overtime for salaried non-exempt employees
A salary does not by itself exempt anyone from overtime. If a salaried employee is non-exempt, the regular rate is the weekly salary divided by the number of hours the salary is intended to cover. For a salary of $1,000 a week covering 40 hours, the regular rate is $25 and each hour over 40 is paid at $37.50. A 45-hour week is $1,000 + 5 × $37.50 = $1,187.50.
For a monthly or annual salary, convert to weekly first: annual ÷ 52, or monthly × 12 ÷ 52. A $52,000 salary is $1,000 a week. Arrangements where a salary is meant to cover a fluctuating number of hours use a different regular rate calculation and are outside the scope of this calculator.
Overtime in the United Kingdom
UK law sets no statutory overtime premium. Whether extra hours are paid at all, and at what rate, is a matter for the employment contract, with the only floor being that average pay must not fall below the National Minimum Wage. Enter the contractual multiplier, for example 1.25 or 1.5, and the contractual weekly hours, commonly 37.5, to use the calculator for a UK contract.
Frequently asked questions
How much is overtime pay for $25 an hour?
Time and a half on $25 is $37.50 an hour, and double time is $50. For a 46-hour week under the federal rule, the 6 hours over 40 are paid at $37.50, which adds $225 to the $1,000 of regular pay for a gross of $1,225. In California a 10-hour day on its own already yields 2 hours at $37.50.
How do I calculate my OT pay?
Find your regular rate, multiply it by 1.5 for the overtime rate, and multiply that by the number of overtime hours. Under the FLSA, overtime hours are the hours over 40 in a single workweek. Add the overtime pay to your regular pay for the week. If you receive non-discretionary bonuses, add them to straight-time pay before dividing by total hours to find the regular rate.
How do I calculate overtime from a salary?
Convert the salary to a weekly amount (annual divided by 52) and divide by the hours it is meant to cover to get the regular rate. A $1,000 weekly salary for 40 hours gives a regular rate of $25, so overtime hours are paid at $37.50. This applies only if you are non-exempt; exempt salaried employees are not owed overtime under the FLSA.
Is overtime after 8 hours a day or 40 hours a week?
Under federal law it is after 40 hours in a workweek; there is no daily threshold. California requires overtime after 8 hours in a day and double time after 12, plus special rates on the seventh consecutive day, with hours already paid as daily overtime excluded from the weekly 40. Check your state, because other states have their own rules.
What is time and a half?
Time and a half means 1.5 times the regular rate of pay. At $20 an hour it is $30, at $25 it is $37.50. It is the minimum overtime rate the FLSA requires for hours over 40 in a workweek for non-exempt employees. Employers may pay more, and some contracts or state laws require double time in certain situations.
When is double time required?
Federal law never requires double time. California requires it for hours over 12 in a workday and for hours over 8 on the seventh consecutive day of a workweek under Labor Code 510. Outside those cases double time is a matter of contract or employer policy, often for holidays or Sundays.
Does a bonus change my overtime rate?
Under the FLSA, non-discretionary bonuses must be included in the regular rate (29 CFR 778.107 and following). Add the bonus to straight-time earnings, divide by total hours worked to get the regular rate, then pay an extra half of that rate for each overtime hour. A $92 bonus in a 46-hour week at $25 raises the regular rate from $25 to $27.
Does overtime apply to a biweekly pay period?
Overtime is calculated for each workweek separately, never for the two-week period as a whole. 48 hours in week one and 32 in week two means 8 overtime hours, even though the period averages 40. The calculator treats each week on its own and then adds the results for the pay period.
Related calculators
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