How to calculate overtime pay
- Find your overtime rate: hourly rate × 1.5. At $20 an hour, overtime is $30 an hour.
- Multiply by overtime hours: 8 hours × $30 = $240.
- Add your regular pay: 40 × $20 = $800, so the week’s gross pay is $1,040.
Time-and-a-half chart
| Hourly rate | Overtime rate (1.5×) | Double time (2×) | 10 OT hours earns |
|---|---|---|---|
| $15 | $22.50 | $30.00 | $225 |
| $18 | $27.00 | $36.00 | $270 |
| $20 | $30.00 | $40.00 | $300 |
| $22 | $33.00 | $44.00 | $330 |
| $25 | $37.50 | $50.00 | $375 |
| $30 | $45.00 | $60.00 | $450 |
| $35 | $52.50 | $70.00 | $525 |
| $40 | $60.00 | $80.00 | $600 |
Overtime rules in the US
- Federal (FLSA): overtime is required after 40 hours in a workweek, not per day, for non-exempt employees. Hours can’t be averaged over two weeks.
- California also requires daily overtime: 1.5× after 8 hours in a day and 2× after 12 hours, plus rules for the seventh day in a row. Alaska, Nevada and Colorado have daily overtime rules too.
- Exempt employees (many salaried managers and professionals) don’t get overtime. Being salaried doesn’t automatically make you exempt; your duties and salary level matter.
- Bonuses and shift differentials usually have to be included in the “regular rate” used for overtime.
Tracking hours? Use our time card calculator to add up the week (with lunch breaks), then enter the total here.
Overtime Pay Calculator FAQs
How do you calculate time and a half?
Multiply your hourly rate by 1.5. At $18 an hour, time-and-a-half is $27 an hour.
Is overtime after 8 hours or 40 hours?
Under federal law, after 40 hours in a workweek. A few states, such as California, also require overtime after 8 hours in a day.
What is double time?
Twice your regular rate. It isn’t required by federal law, but California requires it after 12 hours in a day, and some employers or union contracts pay it on holidays.
Is overtime taxed more?
No. Overtime is taxed at the same rates as regular pay. It can look that way because the larger paycheck is withheld as if you earned that much every period. A new federal deduction for some overtime pay applies on your tax return, so check IRS guidance for your situation.