How to Calculate Overtime Pay (FLSA Rules Explained)
The Federal Default: Time-and-a-Half After 40 Hours
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must be paid 1.5x their regular rate for any hours worked beyond 40 in a single workweek. There's no federal requirement for daily overtime (working a 12-hour day doesn't trigger overtime on its own, federally) -- it's purely a weekly 40-hour threshold.
The Formula
Overtime pay = regular hourly rate × 1.5 × overtime hours worked. Use the Overtime Pay Calculator to calculate this directly from your hours and rate.
States With Daily Overtime Rules
A handful of states go beyond the federal default and require overtime based on hours worked in a single day, not just the week -- most notably California, which requires 1.5x after 8 hours in a day and 2x after 12 hours. A few other states have narrower daily-overtime provisions for specific situations. If you're in one of these states, your actual overtime rules may be more generous than the federal floor.
Who's Exempt From Overtime?
Certain employees -- typically salaried workers in executive, administrative, or professional roles above a specific salary threshold -- are classified as "exempt" and aren't entitled to overtime under the FLSA. Misclassification (being paid salary but actually performing non-exempt duties) is a real and fairly common workplace issue.
Double-Time
Double-time (2x pay) isn't a federal requirement at all -- it only applies where a specific state law (like California's 12-hour daily rule) or an employer's own policy/union contract provides for it.
A Worked Example (Illustrative Numbers)
Say Maria is a non-exempt employee earning $20 an hour. One week she works 46 hours. Her first 40 hours are paid at the regular rate: 40 × $20 = $800. Her 6 overtime hours are paid at 1.5 × $20 = $30 an hour, so 6 × $30 = $180. Her gross pay for the week is $980 before taxes and deductions. These numbers are hypothetical, but the steps are the same for any hourly worker.
Notice that the overtime is calculated week by week. You can't average two weeks together. If Maria works 30 hours one week and 50 the next, she doesn't get to net them out to 40 each -- the 50-hour week still has 10 overtime hours.
What Counts as "Regular Rate"?
Many people assume the regular rate is just their hourly wage, but under the FLSA it can be broader. Certain extra pay, such as some non-discretionary bonuses or shift differentials, may need to be folded into the regular rate before the 1.5x multiplier is applied. For example, if a worker earns a base rate plus a production bonus tied to output, the bonus can raise the rate used to calculate overtime. Discretionary gifts and certain other payments are treated differently. Because the rules have a lot of detail, check the Department of Labor page linked below or ask your payroll department how your specific pay components are treated.
Step-by-Step: Checking Your Own Paycheck
- Write down the actual hours you worked each day of the pay period, including any time before or after your scheduled shift.
- Add the hours by workweek (your employer defines the workweek, for example Sunday through Saturday) rather than by pay period.
- Identify hours beyond 40 in each workweek.
- Multiply those hours by 1.5 times your regular rate.
- Add regular pay and overtime pay and compare the total to your gross pay on the pay stub.
If the numbers don't match, ask payroll to walk you through the calculation. Honest mistakes happen, especially when a workweek straddles two pay periods.
Common Overtime Mistakes
- Counting paid time off as hours worked. Under the federal rules, paid vacation or sick hours generally don't count toward the 40-hour overtime threshold, though some employer policies or state rules treat them differently.
- Forgetting off-the-clock work. Answering work messages, prepping before clock-in, or finishing tasks after clocking out can be compensable time. Keep your own notes.
- Assuming salary means exempt. Being paid a salary doesn't by itself make someone exempt. Both the pay level and the actual job duties matter.
- Mixing up the workweek and the pay period. Overtime is calculated per workweek, even if you're paid every two weeks.
- Assuming a flat "comp time" swap is always allowed. Private-sector employers generally can't simply give time off later in place of overtime pay in the same way government employers sometimes can. If your employer offers this, ask how it complies with the rules.
Multiple Rates in the Same Week
If you work two different jobs for the same employer at different pay rates in one week, the overtime calculation can get more complicated. One common approach blends the rates into a weighted average for the regular rate. Suppose, hypothetically, you work 30 hours at $18 and 20 hours at $24. Your total straight-time earnings are 30 × $18 + 20 × $24 = $540 + $480 = $1,020 for 50 hours, giving a blended rate of $20.40. The overtime premium is then half of that rate for the 10 extra hours, since the straight-time pay for all hours is already counted. Ask your payroll department which method they use.
Tips for Employees Tracking Hours
Keep a simple personal log, such as a notes app or a calendar, with start time, end time, and unpaid break length each day. If a dispute ever arises, records you made at the time are far more useful than memory. Save screenshots of schedules and pay stubs, and keep them for at least a couple of years.
When to Talk to Someone Else
If you think you've been underpaid overtime, start by raising it politely with payroll or your manager, in writing so there's a record. If that doesn't resolve it, the US Department of Labor's Wage and Hour Division accepts questions and complaints, and your state labor department may have additional protections. An employment attorney can explain time limits that apply to wage claims, which are limited, so it's better not to wait too long. This article is general information, not legal advice.
Why the Calculator Helps
Doing the math by hand is fine for a single week, but hours vary and rates can change. Running your real hours through a calculator each pay period gives you a quick sanity check before you rely on a paycheck to cover rent and bills.
Frequently Asked Questions
Does working overtime on a holiday get paid extra on top?
Not automatically under federal law -- holiday pay premiums are a matter of employer policy, not a legal requirement. See the Holiday Pay Calculator.
Where can I read the official federal rules?
The US Department of Labor's overtime page has the authoritative federal rules and any current updates.
Is overtime calculated per day or per week?
Federally it's per workweek, meaning hours beyond 40 in a fixed seven-day period. Some states add daily overtime rules, so check your state labor department.
Do bonuses affect my overtime rate?
They can. Non-discretionary bonuses, such as those promised for meeting production or attendance goals, may need to be included when your regular rate is figured. Ask payroll how your bonuses are treated.
Can my employer require me to work overtime?
In most cases, yes -- federal law generally doesn't limit mandatory overtime for adult workers, though contracts, union agreements, and some state or industry rules may. Whatever the case, hours you work must be paid properly if you're non-exempt.
Do unpaid meal breaks count as hours worked?
Genuine, uninterrupted meal breaks are usually not counted, but if you're working through lunch or required to stay on task, that time is generally compensable.
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