How overtime pay is calculated
For a non-exempt hourly employee under the federal Fair Labor Standards Act (FLSA):
- Regular pay = hourly rate × hours up to 40.
- Overtime rate = hourly rate × 1.5.
- Overtime pay = overtime rate × hours over 40.
- Total = regular pay + overtime pay.
Example: $20/hour and 46 hours. Regular pay is 40 × $20 = $800. The overtime rate is $30, so 6 overtime hours pay $180. Total gross pay: $980.
What counts toward the 40 hours?
The Department of Labor says overtime is due for hours worked over 40 in a workweek. Short rest breaks count as hours worked; bona fide unpaid meal breaks generally do not. How paid vacation, holiday or sick time is treated is set by your employer’s policy or contract, so ask if it matters for your week.
The “regular rate” can include more than your base wage
If you earn non-discretionary bonuses, shift differentials or commissions, those are generally included in the regular rate used to calculate overtime. For example, if you earn $20/hour plus a $1.50 night-shift differential for every hour, your overtime rate is based on $21.50, making it $32.25 rather than $30. This calculator uses the rate you enter, so include any differential that applies to all hours.
Daily overtime and double time
Federal overtime is measured by the workweek, not the day, and the federal rate is time and one half, but some states add daily overtime or double-time rules. California requires 1.5× after 8 hours in a workday and 2× after 12 hours, plus special rules for the seventh day of work in a workweek. Enter any double-time hours separately above, or use the time card calculator with the daily rule switched on. See overtime laws by state.
Who is not entitled to overtime?
“Exempt” employees — typically salaried executive, administrative and professional staff who meet both a salary-level test and a duties test — are not owed overtime under the FLSA. Being paid a salary alone does not make someone exempt. If you are unsure of your status, the U.S. Department of Labor’s Wage and Hour Division can help.
Want just the rate? Use the time and a half calculator. For a step-by-step explanation read how to calculate overtime pay.
Sources and limits
The rules on this page come from these official sources, which we read on September 26, 2026. Pay rules change and differ by state, and some employers and union contracts pay more than the law requires. This page is general information, not legal or payroll advice. If you think you have been underpaid, contact the U.S. Department of Labor's Wage and Hour Division or your state labor department.