What Is Overtime Pay?

Overtime pay is additional compensation paid to employees who work more than their standard hours. In the United States, the Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees at least 1.5 times their regular hourly rate (commonly called "time and a half") for hours worked beyond 40 in a workweek.

Some employers also offer double time (2x the regular rate) for hours worked on holidays, Sundays, or beyond a certain threshold of overtime hours, though this is not federally mandated except in specific circumstances.

How to Use This Calculator

Enter your regular hourly rate – This is your base pay per hour before any overtime multipliers
Enter regular hours worked – Typically 40 hours per week for full-time employees
Enter overtime hours – Hours beyond 40 that qualify for 1.5x pay
Enter double time hours (optional) – Any hours that qualify for 2x pay
Click Calculate – See your total pay breakdown instantly

Example: If you earn $18.50/hour and work 40 regular hours plus 5 overtime hours, your overtime rate is $27.75/hour. Your total pay would be $740 (regular) + $138.75 (overtime) = $878.75 total.

Understanding Overtime Calculations

Time and a Half (1.5x)

Time and a half means you earn 150% of your regular hourly rate for overtime hours. The formula is:

Overtime Rate = Regular Rate × 1.5

For example: $20/hour × 1.5 = $30/hour for overtime

Double Time (2x)

Double time means you earn 200% of your regular hourly rate. The formula is:

Double Time Rate = Regular Rate × 2

For example: $20/hour × 2 = $40/hour for double time

Who Qualifies for Overtime?

Not all employees qualify for overtime pay. Generally, non-exempt hourly workers are entitled to overtime. Exempt employees (such as salaried managers, executives, and certain professionals) typically do not receive overtime pay regardless of hours worked.

Common Overtime Scenarios

Weekly overtime – Most common: time and a half for hours over 40 in a workweek
Daily overtime – Some states (like California) require overtime after 8 hours in a single day
Holiday pay – Many employers offer double time for work on major holidays
Seventh consecutive day – In some states, the seventh consecutive workday requires overtime rates
Union contracts – May specify different overtime rules and thresholds

Frequently Asked Questions

Is overtime calculated daily or weekly?

Under federal law (FLSA), overtime is calculated based on hours worked over 40 in a workweek. However, some states like California require daily overtime (1.5x after 8 hours in a day, 2x after 12 hours). Check your state's labor laws for specific requirements.

Do salaried employees get overtime?

It depends on whether they're classified as exempt or non-exempt. Exempt salaried employees (executives, administrators, professionals earning above a certain threshold) typically don't receive overtime. Non-exempt salaried employees are entitled to overtime pay when working over 40 hours per week.

What is the standard overtime rate?

The federal standard overtime rate is 1.5 times (time and a half) the regular hourly rate for hours worked over 40 in a workweek. Some states and employers may offer higher rates or double time for specific circumstances.

Can employers refuse to pay overtime?

No. Employers are legally required to pay overtime to non-exempt employees under the FLSA. Refusing to pay required overtime is a violation of federal labor law. However, employers can prohibit employees from working unauthorized overtime.

Is overtime taxed differently?

Overtime pay is taxed at the same rate as regular wages. It may appear to be taxed more because earning extra income in a pay period can push you into a higher tax withholding bracket temporarily, but your annual tax rate is based on your total yearly income.

What counts as hours worked for overtime?

All hours an employee is "suffered or permitted to work" count toward overtime calculations, including work performed away from the workplace, at home, or during travel time in certain cases. Meal breaks (typically 30+ minutes where you're completely relieved of duties) usually don't count.