How Overtime Pay Is Calculated
Overtime pay in the US is calculated at 1.5 times your regular hourly rate for all hours worked beyond 40 in a workweek, as required by the Fair Labor Standards Act (FLSA). If you earn $20/hour and work 50 hours, your overtime pay is: 10 hours × $30/hour (1.5 × $20) = $300, plus $800 for regular hours, totaling $1,100 for the week.
The FLSA Overtime Formula
The basic overtime calculation follows this structure:
| Component | Formula |
|---|---|
| Regular pay | Hours (up to 40) × Hourly rate |
| Overtime pay | Hours (over 40) × Hourly rate × 1.5 |
| Total pay | Regular pay + Overtime pay |
For example, an employee earning $25/hour who works 48 hours:
- Regular: 40 × $25 = $1,000
- Overtime: 8 × $37.50 = $300
- Total: $1,300
The effective hourly rate for that week is $1,300 ÷ 48 = $27.08 — higher than the base rate because of the overtime premium.
Time-and-a-Half vs. Double Time
Most workers are familiar with "time-and-a-half" (1.5×), which is the federal minimum for overtime. But double time (2×) exists in certain situations:
| Rate | When It Applies |
|---|---|
| 1.5× (time-and-a-half) | Federal standard: over 40 hours/week |
| 2× (double time) | California: over 12 hours in a single day; some union contracts; some employer policies for holidays |
Double time is not required by federal law — it's a state or employer-level benefit. California is the most notable state requiring it: workers earn 1.5× after 8 hours/day and 2× after 12 hours/day.
State-Specific Overtime Rules
While FLSA sets the federal floor, several states have additional rules:
- California: Daily overtime after 8 hours (1.5×) and 12 hours (2×), plus weekly overtime after 40 hours
- Alaska: Daily overtime after 8 hours
- Nevada: Daily overtime after 8 hours (if hourly rate is less than 1.5× minimum wage)
- Colorado: Daily overtime after 12 hours
Most other states follow the federal weekly-only rule. If your state has daily overtime, you could earn overtime even in a 40-hour week if you work long individual days. Use the timesheet calculator to track your weekly totals, or the time card calculator if your state uses daily thresholds.
Who Is Eligible for Overtime?
Not everyone qualifies. The FLSA divides workers into two categories:
Non-exempt (eligible for overtime):
- Hourly workers earning below a salary threshold
- Most workers paid by the hour
Exempt (no overtime required):
- Salaried employees earning above $43,888/year (2024 threshold)
- Executive, administrative, and professional roles
- Outside sales employees
- Certain computer professionals earning $27.63+/hour
If you're salaried but earn below the threshold, you're likely non-exempt and entitled to overtime. Check with your employer or HR department.
Common Overtime Mistakes
Mistake 1: Averaging hours across two weeks
Even on a biweekly pay schedule, overtime is calculated per individual week. Working 50 hours one week and 30 the next doesn't average to 40 — you're owed 10 hours of overtime for week one.
Mistake 2: Not counting "off-the-clock" work
Answering work emails, attending required meetings, or setting up before a shift all count as hours worked. If this pushes you past 40 hours, overtime applies.
Mistake 3: Confusing comp time with overtime pay
Private-sector employers generally cannot offer comp time (paid time off) instead of overtime pay. Government employers can, but private companies must pay the premium rate.
How Much Extra Does Overtime Really Pay?
Here's what overtime adds at various hourly rates:
| Base Rate | OT Rate (1.5×) | 5 OT Hours | 10 OT Hours |
|---|---|---|---|
| $15/hr | $22.50 | $112.50 | $225.00 |
| $25/hr | $37.50 | $187.50 | $375.00 |
| $35/hr | $52.50 | $262.50 | $525.00 |
| $50/hr | $75.00 | $375.00 | $750.00 |
At $25/hour, working just 5 extra hours per week adds up to $9,750 per year in overtime pay. That's a significant boost — use the salary calculator to see how it affects your annual take-home after taxes.
Key Takeaways
- Federal overtime = 1.5× your rate after 40 hours/week
- Some states (California, Alaska) also require daily overtime
- Overtime must be calculated per week — no averaging across pay periods
- Salaried employees under $43,888/year are typically eligible
- Double time (2×) is state/employer-specific, not federally required
For a quick estimate, use the calculator above. To track daily hours and calculate your full weekly pay, try our timesheet calculator or hours calculator.