How do I calculate overtime pay at time-and-a-half?+
Multiply your regular hourly rate by 1.5 to get the overtime rate. Then multiply by overtime hours. Example: $20/hour regular rate, 8 OT hours. OT rate = $20 x 1.5 = $30/hour. OT pay = $30 x 8 = $240. Add regular pay: $20 x 40 = $800. Total gross = $1,040 for the week.
What is the FLSA rule for overtime pay?+
The Fair Labor Standards Act requires non-exempt employees to receive at least 1.5x their regular rate for all hours over 40 in a workweek. It applies to most private-sector workers. Exempt employees (salaried professionals earning over $684/week meeting specific duties tests) are excluded. The FLSA workweek is any fixed 168-hour period, not necessarily Monday to Sunday.
Does overtime reset weekly or biweekly?+
Under FLSA, overtime is calculated per individual workweek, not per pay period. Even if you are paid biweekly, each 40-hour workweek is evaluated independently. Employers cannot average two weeks to avoid overtime. If you work 30 hours in week one and 50 in week two, you earned 10 hours of overtime in week two regardless of the biweekly pay schedule.
Is overtime taxed at a higher rate?+
Overtime pay is taxed as ordinary income at your marginal rate, the same as regular wages. However, because a single large paycheck can push the estimated annual income into a higher withholding bracket, your employer may withhold more for that check. This corrects itself at year-end filing. You do not permanently pay a higher tax rate on overtime; your total tax liability is based on annual income.
What is the difference between time-and-a-half and double time?+
Time-and-a-half is 1.5x your regular rate, required federally for hours over 40 per week. Double time is 2x your regular rate, mandated in California for hours over 12 in a single day and all hours on the seventh consecutive workday in a week. Federal law does not require double time. It is often negotiated in union contracts or required by some state laws.
Are salaried workers entitled to overtime?+
Salaried non-exempt employees earning under $684/week ($35,568/year as of 2024) must receive overtime at 1.5x their effective hourly rate. Salaried exempt employees (earning above the threshold and meeting executive, administrative, or professional duties tests) are not entitled to overtime under FLSA. Many workers are misclassified as exempt when they should not be.
How is overtime calculated for employees who earn bonuses?+
Non-discretionary bonuses (production bonuses, attendance bonuses, guaranteed bonuses) must be included in the regular rate of pay for overtime calculation. This increases the base rate and therefore the OT rate. Discretionary bonuses (year-end gifts, bonuses not tied to a specific formula) can be excluded. The FLSA requires employers to recalculate OT if a bonus is paid retroactively for a period that included overtime.
How much extra do I earn working 10 hours of overtime per week?+
At $20/hour with 10 weekly OT hours at 1.5x for 52 weeks: OT rate = $30/hour. Annual OT earnings = $30 x 10 x 52 = $15,600. Annual base (no OT) = $20 x 40 x 52 = $41,600. Total annual with OT = $57,200. Working 10 extra hours per week increases annual earnings by 37.5%. Use the Annual OT Earnings mode to model your specific rate.
Can my employer give me comp time instead of overtime pay?+
In the private sector, FLSA generally does not allow compensatory time off in lieu of cash overtime pay for non-exempt employees. State and local government employers may use comp time under specific conditions. Some employers use flex scheduling (fewer hours another week) to keep weekly totals under 40, which is legal. But if hours in any single workweek exceed 40, cash overtime is required.
What is the effective hourly rate when working overtime?+
The effective (blended) hourly rate is total gross pay divided by total hours worked. For a worker at $20/hour working 40 regular + 8 OT hours at 1.5x: gross = ($20 x 40) + ($30 x 8) = $800 + $240 = $1,040. Effective rate = $1,040 / 48 hours = $21.67/hour. This is always between your regular rate and your OT rate, weighted by the proportion of each type of hour.
Does this overtime calculator work for non-US workers?+
Yes. The overtime pay formula (Regular Rate x Multiplier x OT Hours) is universal. You can enter any custom multiplier to match your local law or employment agreement. The FLSA compliance note is US-specific, but the calculation itself works for any country's overtime rules. Use the currency selector to display results in your preferred currency symbol.