Last updated: May 2026
Quick Answer
Overtime Pay = Hourly Rate × Multiplier × Overtime Hours. Under federal law (FLSA), most hourly workers are entitled to time-and-a-half (1.5×) for every hour worked over 40 in a single workweek.
Key Takeaways
- ✓ 1.5× is the federal minimum: For hours over 40/week.
- ✓ State laws vary: California and others require daily overtime (over 8 hours/day) and double time (over 12 hours/day).
- ✓ Weekends aren't automatic overtime: Working Saturday only earns overtime if it pushes your weekly total past 40 hours.
- ✓ Exempt vs. Non-exempt: Salaried employees making over $35,568/year in specific roles are generally exempt from overtime rules.
How to Use This Calculator (With Example)
Enter your base hourly rate and the number of regular hours worked (usually 40). Then enter any overtime hours and select the correct multiplier (1.5× is standard). The calculator breaks down your base pay, overtime pay, and the "overtime premium" — the extra money generated purely by the multiplier.
Scenario: "Peak Season Retail Shift"
- Hourly Rate: $20.00/hr
- Regular Hours: 40 hours
- Overtime Hours: 12 hours
- Multiplier: 1.5× (Time-and-a-half)
The Results
Regular Pay: $20 × 40 = $800.00
Overtime Rate: $20 × 1.5 = $30.00/hr
Overtime Pay: $30 × 12 = $360.00
Total Gross Pay: $800 + $360 = $1,160.00
Effective Rate: $1,160 ÷ 52 hours = $22.31/hr
The Overtime Pay Formula
Calculating your total gross pay with overtime involves three simple steps:
- Regular Pay: Base Hourly Rate × Regular Hours
- Overtime Pay: Base Hourly Rate × Multiplier × Overtime Hours
- Total Gross Pay: Regular Pay + Overtime Pay
The Overtime Premium is a useful HR metric. It isolates the extra cost of overtime. In the example above, the worker worked 12 extra hours. At straight time ($20/hr), that's $240. The overtime pay was $360. The $120 difference is the "overtime premium."
Federal Rules: The Fair Labor Standards Act (FLSA)
In the United States, overtime is governed by the FLSA. The primary rule is simple: Covered, non-exempt employees must receive at least time-and-a-half (1.5×) their regular rate of pay for all hours worked over 40 in a workweek.
Important FLSA caveats:
- No daily limit: The FLSA does not require overtime pay for working more than 8 hours in a single day — only for exceeding 40 hours in a 7-day workweek.
- No weekend/holiday mandate: Extra pay for working weekends, holidays, or nights is a matter of agreement between the employer and employee, not federal law.
- Averaging is illegal: Employers cannot average hours over two weeks. If you work 50 hours in Week 1 and 30 hours in Week 2, you are owed 10 hours of overtime for Week 1 — even though your 80-hour total averages to 40 hours/week.
State Overtime Laws (Daily Overtime & Double Time)
While federal law sets the floor, many states have stricter rules that supersede the FLSA. If state law is more generous to the employee, state law applies.
- California: Requires 1.5× pay for hours worked over 8 in a single day, and for the first 8 hours worked on the seventh consecutive day of work. It requires Double Time (2.0×) for hours worked over 12 in a single day, and for hours worked beyond 8 on the seventh consecutive day.
- Colorado: Requires 1.5× pay for hours worked over 12 in a single day, or over 12 consecutive hours (even if they cross midnight).
- Alaska: Requires 1.5× pay for hours worked over 8 in a single day.
- Nevada: Requires 1.5× pay for hours worked over 8 in a single day for employees earning less than 1.5× the minimum wage.
Exempt vs. Non-Exempt: Who Gets Overtime?
Not every employee is entitled to overtime pay. Employees fall into two categories:
- Non-Exempt: Usually paid hourly. Must receive minimum wage and overtime pay.
- Exempt: Excluded from minimum wage and overtime rules. To be exempt, an employee must generally meet three tests:
- Be paid on a salary basis.
- Earn at least the federal minimum salary threshold ($35,568/year as of 2020, though recent proposed rulings aim to raise this significantly).
- Perform executive, administrative, or professional job duties (the "duties test").
Job titles do not determine exempt status. A manager who spends 90% of their time working a cash register is likely non-exempt, regardless of their title.
Frequently Asked Questions
What is time-and-a-half pay?
Time-and-a-half is 1.5 times an employee's regular hourly rate. Under the federal Fair Labor Standards Act (FLSA), covered non-exempt employees must be paid at least time-and-a-half for all hours worked over 40 in a single workweek.
When does double time apply?
Federal law does not require double time (2.0× pay) for any reason. However, some states mandate it. In California, for example, non-exempt employees must receive double time for all hours worked over 12 in a single day, or any hours worked over 8 on the seventh consecutive day of work.
Are salaried employees entitled to overtime pay?
It depends on their classification. Salaried 'non-exempt' employees are still entitled to overtime. Salaried 'exempt' employees (typically executives, administrators, and professionals earning above $35,568/year, though some states set higher thresholds) are legally exempt from overtime rules.
Does overtime apply per day or per week?
Federally (FLSA), overtime only applies per week (over 40 hours), regardless of how many hours were worked in a single day. However, several states (including California, Colorado, Alaska, and Nevada) have daily overtime laws requiring 1.5× pay for hours worked over 8 in a single day.
Are weekends and holidays automatically overtime?
No. Federal law does not require extra pay for working weekends, holidays, or nights, unless working on those days pushes the employee's total hours for the workweek past 40. However, many employers offer 'premium pay' for holidays voluntarily or as part of a union contract.
What is the 'Overtime Premium'?
The overtime premium is the extra money earned simply because the hours were classified as overtime. If you work 10 hours of overtime at $30/hr straight and $45/hr OT, the total OT pay is $450. The 'premium' portion is $150 (the extra $15/hr above your base rate).