Overtime Pay Calculator
Calculate overtime pay from hourly rate, overtime hours, and the applicable pay multiplier (1.5x for standard time-and-a-half, 2x for double-time). Use it to verify paycheck overtime, plan for high-OT periods, or estimate annual income with significant overtime.
Last updated: May 2026
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About this calculator
The calculator computes total overtime earnings using: Overtime Pay = Hourly × Overtime Hours × Multiplier. Variables: Hourly is the regular base hourly rate; Overtime Hours is the number of overtime hours worked in the period; Multiplier is the overtime premium factor (1.5 for standard time-and-a-half, 2.0 for double-time, varies by jurisdiction and employer). Edge cases: this formula returns ONLY the overtime portion of pay, not total earnings — regular hours at base rate are computed separately. Note also that under FLSA, overtime is typically owed on hours worked OVER 40 per week (some states have stricter rules — California requires 1.5x for hours over 8/day and 12/week, 2x for hours over 12/day or 8/day on the 7th consecutive workday). Public-sector workers, healthcare under '8 and 80' schedules, and some professions have alternative overtime calculations. Salaried exempt employees (executives, professionals, computer workers meeting specific tests) are generally NOT entitled to overtime regardless of hours worked — this is one of the largest legal disputes in employment law, with billions in back pay litigation. Workers earning under specific salary thresholds ($684/week as of 2024) are non-exempt and must receive overtime. The Department of Labor periodically updates these thresholds. Always verify your classification (exempt vs non-exempt) and your state's specific overtime rules before relying on calculations.
How to use
Example 1 — Standard manufacturing overtime. Hourly rate $20, overtime hours 12 (worked 52 hours in a week, 12 over 40), standard 1.5x multiplier. Step 1: overtime pay = 20 × 12 × 1.5 = $360. Verify ✓. Total weekly pay = regular (20 × 40 = $800) + overtime ($360) = $1,160. Note: the formula returns only the OT portion; you must add regular pay separately for total earnings. Example 2 — Healthcare worker with double-time. Hourly $35, overtime hours 6 (worked 50 hours including 6 on a holiday at double-time per union contract), multiplier 2.0. Step 1: overtime pay = 35 × 6 × 2.0 = $420. Verify ✓. Many union contracts in healthcare, transportation, and skilled trades specify double-time for holidays, Sundays, or hours beyond 12/day; the multiplier is contract-specific. Federal law (FLSA) does not require double-time but many employer policies and state laws do. For accurate paycheck modeling, verify your multiplier against your union contract or employee handbook.
Frequently asked questions
What is the legal definition of overtime in the US?
The federal Fair Labor Standards Act (FLSA) defines overtime as hours worked above 40 in a workweek (a fixed, recurring 168-hour period) — not above 8 hours in a day. Non-exempt employees must receive 1.5× their regular rate for those hours. Several states have stricter rules: California requires 1.5× for hours over 8 per day, 2× for hours over 12 per day, and 1.5× for the first 8 hours of the 7th consecutive workday in a week. Alaska, Nevada, and a few others have daily overtime thresholds. Some collective bargaining agreements require higher rates (double-time, triple-time) for nights, weekends, holidays, or extended hours. Salaried 'exempt' employees (executives, professionals, computer workers meeting specific duties tests AND earning above $684/week in 2024) are generally not entitled to overtime regardless of hours worked. Misclassification (treating a non-exempt worker as exempt) is a major source of wage-and-hour litigation, with billions in back pay settlements annually.
How is the "regular rate" calculated for overtime purposes?
The regular rate for overtime is NOT always just the hourly wage. Under FLSA, it includes most forms of compensation paid in the workweek: hourly wages, non-discretionary bonuses, shift differentials, longevity pay, on-call pay, and most commissions. It excludes: discretionary bonuses, gifts, paid time off, premium pay for hours beyond the FLSA threshold, and employer contributions to bona fide benefit plans. The calculation: total non-overtime earnings ÷ total hours worked = regular rate. Example: a worker with $800 base for 40 hours plus $200 nondiscretionary bonus has a regular rate of (800 + 200) / 40 = $25/hour, not $20/hour. Their overtime rate is then $25 × 1.5 = $37.50/hour, not $30. Many employers incorrectly calculate overtime using only the base hourly rate, underpaying workers — this is a common compliance error and major source of class-action wage-and-hour lawsuits.
What are the most common mistakes in overtime calculations?
The biggest is misclassifying employees as exempt when they are actually non-exempt — the DOL's salary threshold ($684/week as of 2024) and duties tests are specific and frequently misapplied; misclassified workers can claim back overtime pay for up to 2 years (3 if willful). The second is failing to include non-discretionary bonuses in the regular rate for overtime calculation. The third is using daily overtime in states without daily-OT rules (most states) or vice versa. The fourth is averaging hours across multiple workweeks — overtime must be calculated each workweek separately under FLSA; 30 hours one week + 50 hours the next is 10 OT hours, not "balanced out" to 80 regular hours. The fifth is computing overtime on tipped wages incorrectly — tipped employees' overtime rate is 1.5× the full minimum wage (not 1.5× the cash wage they receive); a $2.13 cash wage + $5.12 tip credit = $7.25 minimum wage, and overtime rate is $10.88/hour, not $3.20. These mistakes are why wage-and-hour lawsuits remain the largest category of employment litigation in the US.
When should I NOT use this simple calculator?
Skip it for non-discretionary bonus and commission situations where the regular rate must be recalculated — use a labor attorney or specialized payroll software. Avoid it for tipped employees where the regular rate involves tip credits and minimum wage compliance complications. Do not use it for federal/state government workers under alternative work schedules (compressed weeks, flexible schedules) where overtime is calculated against the alternate schedule, not the standard 40-hour week. Skip it for healthcare workers under 'fluctuating workweek' or '8-and-80' arrangements where the calculation is more complex. Do not use it for piece-rate workers where overtime is calculated against the hourly equivalent (total pay / total hours) rather than a stated hourly rate. And do not use it for workers in states or industries with unique overtime rules without verifying — California has different rules from Texas, healthcare has different rules from manufacturing, and union contracts can override default rules entirely.
How does overtime contribute to total annual income?
Overtime can dramatically increase annual income — and dramatically increase tax brackets. A worker at $20/hour normally earning $41,600/year (40 hours × 52 weeks) who works 10 hours of overtime per week earns: regular $41,600 + overtime ($20 × 1.5 × 10 × 52) = $41,600 + $15,600 = $57,200 — a 37% increase. At higher hour counts, overtime can double base pay: $20/hour working 60 hours/week (20 OT hours) = $20 × 40 × 52 + $30 × 20 × 52 = $41,600 + $31,200 = $72,800 — a 75% increase. For workers in physically or mentally demanding jobs, this premium pay is often the difference between marginal and comfortable living, but comes at substantial health and family cost. Long-term: most studies find that workers consistently doing 50+ hours/week have measurably worse health outcomes (cardiovascular, mental health) and family/relationship outcomes. The premium pay is real, but is not free.