How overtime pay is calculated
Overtime is not a separate paycheck — it is a premium on top of the hours you already worked. The math is always the same three blocks: regular hours at the regular rate, overtime hours at the regular rate times the multiplier, and, where a state or contract requires it, double time hours at twice the rate.
- 11. Find the hoursTotal the workweek first. Every hour on the clock counts toward the threshold, including Saturdays and holidays.
- 22. Apply the thresholdHours up to 40 (or your state or contract threshold) are regular; the excess is overtime.
- 33. MultiplyOvertime hours × regular rate × 1.5. Double time, if it applies, comes off the top of the overtime block.
- 44. Add the blocksRegular pay + overtime pay + double time pay = gross pay, before taxes and deductions.
Worked example: 46 hours at $22.00
A 46 hour workweek at $22.00 an hour with the federal threshold and time and a half splits like this:
| Type | Hours | Rate | Pay |
|---|---|---|---|
| Regular | 40.00 | $22.00 | $880.00 |
| Overtime (×1.5) | 6.00 | $33.00 | $198.00 |
| Gross | 46.00 | $1,078.00 |
The six overtime hours are worth $198.00 instead of the $132.00 they would earn at straight time — a $66.00 premium. Averaged across the whole week the effective rate is $23.43 an hour.
If the same 46 hours were worked in a state with daily overtime — say four 10 hour days and one 6 hour day in California — the split would be different, because hours over 8 in a workday are overtime there regardless of the weekly total. Set “Overtime after” to 8 and run each day separately in that case.
Time and a half at common hourly rates
| Regular rate | Time and a half | Double time | 8 overtime hours |
|---|---|---|---|
| $15.00 | $22.50 | $30.00 | $180.00 |
| $18.00 | $27.00 | $36.00 | $216.00 |
| $20.00 | $30.00 | $40.00 | $240.00 |
| $22.00 | $33.00 | $44.00 | $264.00 |
| $25.00 | $37.50 | $50.00 | $300.00 |
| $30.00 | $45.00 | $60.00 | $360.00 |
| $35.00 | $52.50 | $70.00 | $420.00 |
The last column is eight overtime hours paid at time and a half.
Sources
This page describes the federal baseline. State law, a contract or a collective bargaining agreement can require more, and never less.
- 29 CFR 778.107 — General standard for overtime payOvertime must be “compensated at a rate not less than one and one-half times the regular rate at which the employee is actually employed.”
- 29 CFR 778.101 — Maximum nonovertime hours40 hours is “the maximum number that an employee subject to its provisions may work for an employer in any workweek without receiving additional compensation at not less than the statutory rate for overtime.”
- 29 CFR 778.102 — Application of overtime provisions generallyThe Act “does not generally require” overtime for “hours in excess of eight per day” or for “work on Saturdays, Sundays, holidays or regular days of rest.”
- California DIR — Overtime FAQCalifornia requires time and a half over 8 hours in a workday and double time over 12 hours in a workday, plus special rules for the seventh consecutive day.
- U.S. Department of Labor — Overtime PayWage and Hour Division overview of overtime coverage and enforcement.
Frequently asked questions
How is overtime pay calculated?
Multiply the overtime hours by your regular rate and by the overtime multiplier. 29 CFR 778.107 requires overtime to be “compensated at a rate not less than one and one-half times the regular rate at which the employee is actually employed,” for hours over 40 in a workweek.
What is time and a half on $22 an hour?
Is overtime paid after 8 hours a day?
Not under federal law. 29 CFR 778.102 states that the Act “does not generally require … that an employee be paid overtime compensation for hours in excess of eight per day.” Several states do require daily overtime, and a contract or collective bargaining agreement can require it as well — set “Overtime after” to 8 to model that.
What is double time and when does it apply?
Double time is twice the regular rate, and it is not a federal requirement. California, for example, requires double the regular rate for “all hours worked in excess of 12 hours in any workday” and for hours over eight on the seventh consecutive day of work in a workweek. Elsewhere double time usually comes from a contract or company policy.
Do I get overtime for working a Saturday or a holiday?
Not automatically. 29 CFR 778.102 says the Act does not generally require overtime compensation for “work on Saturdays, Sundays, holidays or regular days of rest.” Those hours still count toward the 40 hour weekly total, and premium pay for them can be required by a contract or by state law.
Does the overtime count reset every week?
Yes. 29 CFR 778.104 states that the Act “does not permit averaging of hours over 2 or more weeks.” A 30 hour week followed by a 50 hour week still produces 10 overtime hours, even though the average is 40. The bi-weekly time card applies the threshold to each week separately for exactly this reason.
I am paid a salary — am I exempt from overtime?
Not necessarily. 29 CFR 541.2 says “a job title alone is insufficient to establish the exempt status of an employee,” and that status “must be determined on the basis of whether the employee’s salary and duties meet the requirements of the regulations in this part.” Being paid a salary is only one part of the test.