Under the federal Fair Labor Standards Act (FLSA), covered nonexempt employees must receive overtime pay of at least one and a half times their regular rate for hours worked over 40 in a workweek. The calculation itself is short. The details are in which hours count and what the “regular rate” includes.
The basic formula
- Count hours in one workweek. A workweek is a fixed, recurring 168-hour period. It can start on any day, and each week stands alone. You cannot average two weeks together.
- Split the hours. Up to 40 hours are regular hours. Hours over 40 are overtime hours.
- Price each part. Overtime rate = regular rate × 1.5.
Overtime pay = overtime hours × regular rate × 1.5
Example: $18 an hour, 46 hours
| Item | Calculation | Amount |
|---|---|---|
| Regular pay | 40 × $18.00 | $720.00 |
| Overtime rate | $18.00 × 1.5 | $27.00 |
| Overtime pay | 6 × $27.00 | $162.00 |
| Total gross pay | $882.00 |
The same answer, a different way
Payroll often splits it differently: pay every hour at straight time, then add a half-time premium for the overtime hours.
- Straight time: 46 × $18.00 = $828.00
- Premium: 6 × $9.00 = $54.00
- Total: $882.00
Both methods agree. The second is useful once bonuses enter the picture.
When a bonus changes the overtime rate
The regular rate is not always your hourly rate. The Department of Labor explains that it generally includes other pay for the work, such as nondiscretionary bonuses (for example, a production or attendance bonus you were promised), shift differentials, and commissions. It is calculated as an average hourly rate for the workweek.
Same week as above, plus a $46 production bonus:
- Straight-time earnings: $828.00 + $46.00 = $874.00.
- Regular rate: $874.00 ÷ 46 hours = $19.00 an hour.
- Overtime premium: 6 hours × ($19.00 × 0.5) = $57.00.
- Total gross pay: $874.00 + $57.00 = $931.00.
Leaving the bonus out of the overtime rate would underpay the week by $3.00 ($57.00 − $54.00). Simple overtime calculators, including ours, use one hourly rate. When you earn bonuses or several rates, use this method or check your pay stub.
Things that do not trigger federal overtime
The FLSA does not by itself require overtime for:
- Working more than 8 hours in a day.
- Working on a weekend, a holiday, or a regular day off.
Some states, union contracts, and employers do set daily overtime, double time, or holiday premiums. Those rules come on top of the federal floor.
Who is not owed overtime
Some employees are exempt. Exemption depends on the job’s duties and how it is paid, not only on job title or on being paid a salary. If you are unsure, the Department of Labor’s overtime pages are the place to start.
Overtime over a two-week pay period
If you are paid every two weeks, overtime is still worked out week by week. Working 50 hours then 30 hours gives 10 overtime hours, even though the total is exactly 80. The biweekly pay calculator shows this side by side.
Tools
- Overtime calculator: regular, overtime, and double-time pay from your rate and hours.
- Time card calculator: overtime from a week of clock times, with daily or weekly limits.
- Biweekly pay calculator: two weeks of hours with overtime counted per week.
Sources
- U.S. Department of Labor, Fact Sheet #23: Overtime Pay Requirements of the FLSA
- U.S. Department of Labor, Fact Sheet #56A: Overview of the Regular Rate of Pay Under the FLSA
- U.S. Department of Labor, Overtime Pay
About this guide. Written for US employees as general information, not legal or tax advice. Rules can differ by state, employer, and contract. See our methodology and disclaimer.