How Overtime Pay Is Calculated

Overtime pay rules protect hourly workers from being required to work excessive hours without compensation. Here's how the federal standard works, where states add additional protections, and how to calculate exactly what you're owed.

The Federal Standard (FLSA)

Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive at least 1.5× their regular rate of pay for any hours worked over 40 in a workweek.

Threshold: 40 hours per workweek (not per day, not per pay period)
Rate: 1.5× (time and a half) the regular hourly rate
Example: Regular rate $20/hr → Overtime rate $30/hr

Use our Overtime Pay Calculator to calculate your exact overtime earnings.

Exempt vs. Non-Exempt Employees

FLSA overtime rules only apply to non-exempt employees. Salaried employees classified as exempt — typically those earning above the salary threshold ($684/week as of 2024) in executive, administrative, or professional roles — are not entitled to overtime under federal law.

If you're classified as exempt but your duties don't actually match an exemption category, you may be misclassified. This is worth consulting an employment attorney about.

State Overtime Rules

Several states have overtime rules stricter than federal law:

California: Daily overtime (1.5×) after 8 hours in a day; double time after 12 hours in a day or after 8 hours on the 7th consecutive day
Alaska: Daily overtime after 8 hours
Nevada: Daily overtime after 8 hours for employees earning below 1.5× minimum wage
Colorado: Daily overtime after 12 hours or 12 consecutive hours

When state and federal rules conflict, the rule more favorable to the employee applies.

How to Calculate Your Overtime Pay

Determine your regular rate (total straight-time pay ÷ total hours worked, including bonuses in some cases)
Multiply overtime hours × 1.5 × regular rate
Add regular pay for the first 40 hours

Example: $18/hr, 48 hours worked in a week:
Regular pay: 40 × $18 = $720
Overtime pay: 8 × ($18 × 1.5) = 8 × $27 = $216
Total: $936