Calculate your overtime rate given your standard pay rate and overtime multiplier. Optionally enter the hours worked to calculate your total overtime pay.
Overtime Pay Rate:
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How to Calculate Overtime
The average workweek has typically been 40 hours. Anytime a worker who is eligible for overtime works more than 40 hours per week, they will earn overtime pay.
Whether you are eligible for overtime pay depends on the nature of your job, the state’s law in which you work, and how many hours you have worked in a given week.
Each state’s overtime laws differ. Some states, like California, calculate overtime daily, which means that overtime is paid for any hours worked over 8 in a given day.
Most employers will pay time and a half or double pay for overtime, but you can use the calculator above to calculate your overtime with any multiplier.
How Much is Overtime?
The way overtime is calculated is based on a multiplier. The most common multipliers are time and a half, double-time, triple-time, and sometimes even quadruple-time.
This guide will focus on time and a half since it is by far the most common overtime rate, and also the minimum overtime rate that is required by the government.
Overtime multipliers other than time and a half can be paid for unusual overtime work, such as work on a federal holiday, however, there are no federal guidelines on when double-pay for overtime is required, with the exception of California. Always check with your employer to ensure you understand your overtime pay rate.
Time and a half means the overtime rate is 1.5 times the worker’s normal pay rate. In other words, the worker will receive an hourly rate that is 50% higher than their normal rate for each hour of overtime.
The formula to calculate overtime is shown below.
overtime pay = hourly wage × overtime multiplier × overtime hours worked
Thus, your overtime pay is equal to the normal hourly pay rate multiplied by the overtime multiplier paid by your employer, and then multiplied by the number of hours of overtime that you worked.
Standard pay can be calculated by multiplying the normal pay rate by the number of hours that you normally work in a week.
To calculate your total pay with overtime, simply add your overtime wages to your standard pay wages like this:
total pay = normal pay + overtime pay
For example, let’s say that a worker normally works 40 hours per week. But this week, they will need to work an additional 10 hours.
Their normal pay rate is $30 per hour and they will receive overtime pay of time and a half. We can now plug these numbers into the overtime formula:
overtime pay = $30 × 1.5 × 10
overtime pay = $450
The overtime pay rate is found by multiplying the hourly rate by the overtime multiplier. In this example, it is $30 × 1.5 = $45.
In this example, the standard pay is $30 × 40 = $1,200. This is the weekly pay that would normally be received without overtime pay.
The final calculation is the total pay with overtime. It is found by adding overtime pay and standard pay. For this worker, the total pay is $450 + $1,200 = $1,650.
Overtime Pay Chart
The chart below shows the overtime rate for common hourly rates.
|Regular Pay||Time and a Half Pay||Double Time Pay|
How to Calculate Overtime for a Salaried Employee
To calculate the overtime for an employee that is paid on salary, start by converting their salary to an hourly wage. You can do this with our salary to hourly calculator, or simply divide their weekly pay by the number of hours they work per week.
Then, use the OT formula above to calculate overtime just like you would for an hourly employee.
You can also convert an hourly wage to an annual salary using our hourly to salary calculator.
Overtime Pay Eligibility – Can Salary Employees Get Overtime?
Some salaried employees are eligible for overtime pay. Overtime is a great way for salaried employees to increase their annual income.
The U.S. federal government stipulates that one of two conditions must be met in order for a salaried employee to receive overtime.
First, they must make less than $35,568 per year. This comes out to about $684 per week or $17.10 per hour with a 40-hour weekly schedule.
Or, they must work in a job that is not exempt. As the Fair Labor Standards Act indicates, this mostly applies to blue-collar workers and first responders, such as police, firefighters, and paramedics.
The list of exemptions is detailed in the next section.
If the employee is salaried and makes less than the thresholds listed above or they work in a job that does not fall under one of the exemptions, they will be entitled to overtime pay for any hour worked in excess of the normal 40-hour-a-week schedule.
There are exemptions to the overtime laws in which salaried employees are not eligible for overtime pay. These include:
- Executive exemption
- Administrative exemption
- Professional exemption
- Computer Employee exemption
- Outside Sales exemption
- Highly Compensated exemption
- Employees of seasonal amusement or recreational businesses exemption
Read the FLSA fact sheet to learn more about each of these exemptions and if they apply to you. If you are a salaried employee, make more than $684 per week, and are included in one of these exemptions, then you will most likely not be eligible for overtime pay.
Check with your employer to see whether you are an exempt or non-exempt employee.
How to Get Overtime
The best way to earn additional income with overtime is to work hard and be a productive employee at your job. Your employer will see that you are one of the best performers in the job and want to give you more work. A pay raise may also come in the near future.
So, you could make more money not only from a pay raise, but also from working more hours.
Another way to get overtime is to ask your boss for more work. This shows you are taking initiative, and if your performance is above average, your boss should be willing to give you more work.
Here are a few examples of how to ask your boss for more work:
- Pay attention to tasks that aren’t getting done weekly that could be.
- Are there tasks that could be done more efficiently if you had the time to create a better process for them?
- Are there new tasks that you think would benefit your boss and your job?
- Are there tasks that you could start doing to make your boss’s life easier?
Once you have a list of items that you could do during overtime hours, meet with your boss to discuss them. If you can make your boss’s life easier, they are more likely to allow you to work overtime hours.
However, beware that excessive overtime can cause burnout, safety issues, and possibly lower production for some employees if they are overworked. It’s important to only work the amount of overtime that you are comfortable with.
Frequently Asked Questions
How do you get double-time pay?
Double-time pay is typically paid for work done in unusual or extreme circumstances, such as working on a holiday or working over 50-55 hours per week. However, there are no federal guidelines (except in California) on double-time pay, so each employer may differ in how they offer it.
Do you get overtime pay on a holiday?
The U.S. Federal Government does not require overtime pay for work on holidays unless overtime hours are worked on such days. With that said, every employer treats holiday pay differently, and some may offer additional overtime pay for work on holidays.
Are employees paid by the day eligible for overtime?
Whether an employee is paid by the day, hour, salary, or on some other basis, overtime pay is still calculated based on the calculated hourly rate and the number of hours worked that exceed 40 in a standard work week. Employees paid by the day are also only eligible for overtime if they are not exempt employees.
Do you get overtime pay for commissions and bonuses?
If an employee is paid commissions or on some other basis, the overtime pay due must be computed on the basis of the average hourly rate derived from such earnings, per the FLSA.
Do I need prior authorization to work overtime?
Per the FLSA, overtime pay may not be waived because an employer states no overtime is allowed or prior authorization of overtime is needed. Employees that are eligible for overtime pay and work more than 40 hours per week are still entitled to overtime pay compensation.
Overall, overtime pay is a great way to increase your annual income and earning potential without having more than one job. Taking on new tasks, making your boss’s job easier, and going above and beyond are all ways to have overtime hours approved and work towards a future pay increase.
- U.S. Department of Labor, Overtime Pay, https://www.dol.gov/agencies/whd/overtime
- State of California Department of Industrial Relations, Overtime, https://www.dir.ca.gov/dlse/faq_overtime.htm
- U.S. Department of Labor, Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA), https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime
- U.S. Office of Human Resources Management, Pay for Holiday Work, https://www.commerce.gov/hr/practitioners/compensation-policies/premium-pay/pay-for-holiday-work