Overtime is one of the easiest ways to boost a paycheck, and one of the easiest things to get wrong on a timesheet. Here's how to calculate it yourself so you can check your pay stub.
The basic rule
Under the federal Fair Labor Standards Act (FLSA), covered nonexempt employees generally must be paid at least one and a half times their regular rate for every hour worked over 40 in a workweek. That's what "time and a half" means.
A few details matter:
- It's per workweek, not per pay period. A workweek is a fixed, recurring period of seven consecutive days. If you work 50 hours one week and 30 the next, you're owed 10 hours of overtime for the first week, even though the two-week total is 80.
- Not everyone is covered. Many salaried employees in executive, administrative, or professional roles are exempt and aren't owed overtime. Being paid a salary doesn't by itself make someone exempt.
- States can require more. Some states have their own overtime rules. California, for example, generally requires overtime for hours over 8 in a workday and double time in certain cases.
Step by step
- Find your regular hourly rate. For most hourly workers, it's just your hourly wage.
- Find your overtime rate. Multiply your regular rate by 1.5.
- Count overtime hours. Hours worked over 40 in the workweek.
- Multiply. Overtime rate × overtime hours = overtime pay.
- Add regular pay. Regular rate × 40 (or your regular hours) + overtime pay = gross pay for the week.
Weekly pay = (rate × 40) + (rate × 1.5 × hours over 40)
Plug in your rate and hours.
Open the Overtime CalculatorWorked examples
Hourly worker, one overtime week
You earn $18 an hour and work 47 hours.
| Step | Math | Result |
|---|---|---|
| Overtime rate | $18 × 1.5 | $27 |
| Regular pay | $18 × 40 | $720 |
| Overtime pay | $27 × 7 | $189 |
| Total for the week | $909 |
Two pay rates, or a bonus
If you earn a nondiscretionary bonus, like a production bonus or an attendance bonus promised in advance, it generally has to be included in your regular rate for overtime purposes. The regular rate becomes your total straight-time pay divided by total hours worked.
Say you earn $20 an hour, work 45 hours, and get a $90 production bonus that week:
| Step | Math | Result |
|---|---|---|
| Straight-time earnings | ($20 × 45) + $90 | $990 |
| Regular rate | $990 ÷ 45 | $22 |
| Overtime premium (the extra half) | $22 × 0.5 × 5 | $55 |
| Total for the week | $990 + $55 | $1,045 |
Notice the approach: all 45 hours have already been paid at straight time in the first line, so overtime adds only the extra half.
Salaried, nonexempt
Some salaried employees are nonexempt and still owed overtime. If your salary is meant to cover 40 hours, divide the weekly salary by 40 to get the regular rate.
A weekly salary of $1,000 for 40 hours gives a regular rate of $25. Working 44 hours earns 4 × $37.50 = $150 in overtime, for $1,150 that week.
How much does overtime add up to?
Regular overtime can change your yearly income a lot. At $20 an hour, five overtime hours every week adds $150 a week, or $7,800 a year. It also adds 260 hours of work, which is worth weighing.
Checking your pay stub
When you look at your stub, confirm:
- Overtime hours match the hours you worked over 40 in each workweek
- The overtime rate is at least 1.5 times your regular rate
- Bonuses or shift differentials that should count toward your regular rate are included
If something doesn't add up, ask your payroll or HR department first. The U.S. Department of Labor's Wage and Hour Division explains the federal rules and how to get help.
Common questions
Is overtime 1.5 or 2 times pay?
The federal minimum is 1.5 times. Double time isn't required by federal law but may apply under some state laws, union contracts, or employer policies, often for holidays or very long shifts.
Does overtime count PTO or holiday hours?
Under federal rules, overtime is based on hours actually worked. Paid time off for hours not worked generally doesn't count toward the 40, although some employers count it by policy.
Is overtime taxed more?
Overtime pay is regular income. It can be withheld at a higher rate on a big paycheck, because payroll systems estimate tax as if every paycheck were that size, but your actual tax is settled when you file your return.