How to use this calculator
Overtime is where most wage and hour claims start, and the math is less simple than multiplying the hourly rate by 1.5. The Fair Labor Standards Act requires time and a half for hours over 40 in a workweek, but the multiplier applies to the regular rate of pay, which must include most bonuses and shift differentials. A few states also pay overtime by the day, and California adds double time.
Enter the hourly rate, any nondiscretionary bonus earned that week, and the hours worked each day. The calculator applies the rules you pick and shows how the pay splits between regular, overtime, and double time. If you are unsure whether the employee is even eligible, start with our exempt vs nonexempt guide.
- Choose the rules for the state where the work was done.
- Enter the base hourly rate and any nondiscretionary bonus earned in the same workweek.
- Enter hours for each day of the workweek, starting with the first day of your fixed workweek.
- Read the totals and check the split between regular, overtime, and double-time hours.
How it's calculated
Regular rate = (hourly rate x total hours + nondiscretionary bonus) / total hours
Total pay = regular rate x regular hours + 1.5 x regular rate x overtime hours + 2 x regular rate x double-time hours
Under federal rules, overtime hours are the hours over 40 in the workweek. In California, hours over 8 in a day are overtime and hours over 12 are double time. On the seventh consecutive day of work in a workweek, the first 8 hours are overtime and anything beyond 8 is double time. Weekly overtime then applies to regular hours over 40 that weren't already counted as daily overtime, so no hour is paid twice.
Worked example
A warehouse associate in Texas earns $20 an hour and works 9 hours a day, Monday through Friday, for 45 hours. She also earns a $50 attendance bonus that week.
The regular rate is ($20 x 45 + $50) / 45 = $21.11. Under federal rules she has 40 regular hours and 5 overtime hours. Pay is $21.11 x 40 + $31.67 x 5 = $1,002.78. Leaving the bonus out of the regular rate would underpay her by $2.78 that week. It sounds small, but across a few hundred hourly employees and two or three years of back pay, it becomes a real liability.
The same schedule in California produces the same total here, because 1 hour a day over 8 adds up to the same 5 overtime hours. The results differ when shifts are long and uneven, such as three 13-hour shifts, which create double time in California and no overtime at all under federal rules.
Rules to know
The federal rule applies to nonexempt employees covered by the FLSA. Overtime is calculated per fixed workweek of 168 hours, and you can't average hours across two weeks, even on a biweekly payroll.
California, Alaska, Colorado, and Nevada have daily overtime rules. Nevada's applies to employees earning less than one and a half times the state minimum wage, and employers and employees can agree to some alternative schedules. Some states also have seventh-day rules or different rules for specific industries. Public sector employers may provide compensatory time in limited cases, but private employers generally can't substitute comp time for overtime pay.
Truly discretionary bonuses, gifts, expense reimbursements, and premium pay already at 1.5 times or more can be excluded from the regular rate. The Department of Labor's regulations at 29 CFR Part 778 explain the details. Our time and attendance buyer guide covers software that applies these rules automatically.
This is general information for US employers, not legal or tax advice. Rates and rules change and vary by state and city, so confirm current figures with the agency or a qualified advisor.
Common mistakes
- Averaging hours across two weeks on a biweekly payroll.
- Leaving production, attendance, or shift bonuses out of the regular rate.
- Treating employees as exempt because they are paid a salary, without checking the duties test.
- Ignoring daily overtime when an employee works in California, Alaska, or Colorado.
Email templates that go with this
Once you have the number, these templates help you explain it to employees, candidates, or managers.
Where to go from here
A calculator answers one question. The right process and software keep the numbers right every pay period.
Job descriptions with pay data
- Paralegal job description templateBLS median $30.24/hr. Nonexempt (overtime eligible).
- IT support specialist job description templateBLS median $29.74/hr. Nonexempt (overtime eligible).
- Restaurant manager job description templateBLS median $33.36/hr. Depends on duties.
- Truck driver (CDL) job description templateBLS median $28.19/hr. Depends on duties.
State rules behind this calculation
- Overtime laws by stateWhere state overtime rules go further than the federal 40-hour rule, and the states with their own salary tests for exempt employees.
- California labor lawsMinimum wage $16.90. Final pay if fired: Immediately, on the last day of work.
- Colorado labor lawsMinimum wage $15.16. Final pay if fired: Immediately.
- Alaska labor lawsMinimum wage $14.00. Final pay if fired: Within 3 working days after termination.
Frequently asked questions
How do you calculate time and a half?
Is overtime calculated per day or per week?
Do salaried employees get overtime?
Can employees waive overtime?
Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.