Last updated: March 2025
Quick Answer
Overtime Pay = Hourly Rate × Multiplier × Overtime Hours. Under FLSA, non-exempt employees earn at least 1.5× their regular rate for hours over 40 per week.
Key Takeaways
- ✓ Overtime Pay = Hourly Rate × OT Multiplier × OT Hours
- ✓ FLSA requires 1.5× pay for hours over 40/week for non-exempt workers
- ✓ Some states require daily overtime (e.g., California: 8+ hours/day)
- ✓ The effective rate shows your blended hourly rate
Understanding Overtime Pay
Under the FLSA, non-exempt employees must be paid at least 1.5× their regular rate for hours over 40/week. Some states have additional daily overtime thresholds.
Calculation
Total = (Rate × Regular Hours) + (Rate × Multiplier × OT Hours)
Example: $25/hr, 40 regular + 10 OT at 1.5×: $1,000 + $375 = $1,375. Effective rate: $27.50/hr.
Time-and-a-Half vs. Double Time
1.5× is the federal minimum. Double time (2×) is mandated in some states and union contracts. California requires 2× for hours over 12/day.
Employer Rules
- Exemption status — Salaried employees above $35,568/year in exempt roles don't qualify
- State variations — Check your state's specific labor laws
- Hiring vs. OT — Consider if new hires are cheaper than overtime
For total costs, use our Employee Cost Calculator.
Frequently Asked Questions
What is time and a half?
Time and a half means 1.5× the regular hourly rate. Under the FLSA, non-exempt employees must be paid at least 1.5× for hours worked over 40 in a workweek.
When does double time apply?
Double time (2× pay) is not federally mandated but some states (like California) require it for hours over 12 in a day or over 8 on the 7th consecutive day worked.