Under the federal Fair Labor Standards Act, or FLSA, non-exempt employees must be paid at least 1.5 times their regular hourly rate for every hour worked beyond 40 in a workweek. So if you earn 20 dollars an hour, your overtime rate is 30 dollars an hour. Some states add their own daily-overtime rules, and many salaried, or exempt, employees may not qualify at all.
- Overtime rate = regular rate x 1.5. The federal minimum is time and a half for hours over 40 in a single workweek.
- The threshold is a fixed, recurring seven-day workweek, not a two-week pay period, so hours do not average across weeks.
- Only non-exempt employees are covered. Exempt workers, usually certain salaried roles, may not receive overtime.
- Your regular rate can include more than base pay, such as certain bonuses and commissions, which raises the overtime rate.
- Some states set daily overtime after 8 hours or higher multipliers, so check your state labor agency and the U.S. Department of Labor.
How Overtime Pay Is Calculated
The short answer is that overtime pay is your regular hourly rate multiplied by 1.5 for each hour you work past 40 in a workweek. This is the federal floor set by the FLSA, and it is why overtime is often called time and a half. Take your regular rate, add half of it again, and pay that higher rate for the extra hours.
Write the core formula on a single line:
overtime rate = regular rate x 1.5
If your regular rate is 20 dollars an hour, then 20 x 1.5 equals 30 dollars an hour for overtime. Work 45 hours in a week, and the first 40 hours are paid at 20 dollars while the 5 overtime hours are paid at 30 dollars each. That is 800 dollars in regular pay plus 150 dollars in overtime, for 950 dollars total before taxes. If you want to convert an annual salary into an hourly figure first, the Salary Calculator can help you find the regular rate that feeds this calculation.
The multiplier applies only to the hours above 40, not to your whole paycheck. Your first 40 hours are always paid at the regular rate. Only hour 41 and beyond earn the time-and-a-half premium, which is a point many workers miss when they estimate a large check.
The Workweek Is the Unit That Counts
Overtime is measured against a single workweek, and getting the workweek right is half the calculation. The FLSA defines a workweek as a fixed and regularly recurring period of 168 hours, or seven consecutive 24-hour days. It does not have to start on Monday or line up with the calendar week, but once your employer sets it, it stays consistent.
This matters because overtime does not average across two weeks. Suppose your employer pays every two weeks and you work 50 hours one week and 30 the next. That is 80 hours over the pay period, which might look like no overtime. But the law reads each workweek on its own: the 50-hour week owes 10 hours of overtime, and the 30-hour week stands alone. You are still owed that overtime even though the two weeks average to 40.
Worked Example: A 50-Hour Week at Several Pay Rates
The multiplier is the same at every wage, but the dollars change fast as the base rate rises. The table below shows the same 50-hour week, which is 40 regular hours plus 10 overtime hours, at four hourly rates. The overtime rate is the regular rate times 1.5, and the total is regular pay plus overtime pay. All figures are gross, before taxes and deductions.
| Regular Rate | Regular Pay (40 hrs) | Overtime Rate (x1.5) | Overtime Pay (10 hrs) | Weekly Total |
|---|---|---|---|---|
| 15 dollars | 600 dollars | 22.50 dollars | 225 dollars | 825 dollars |
| 20 dollars | 800 dollars | 30 dollars | 300 dollars | 1,100 dollars |
| 25 dollars | 1,000 dollars | 37.50 dollars | 375 dollars | 1,375 dollars |
| 30 dollars | 1,200 dollars | 45 dollars | 450 dollars | 1,650 dollars |
Notice that the overtime pay column grows in step with the base rate, because the premium is a fixed multiple of it. The chart below compares the regular rate with its time-and-a-half overtime rate for the 20 dollar example, so you can see the size of the premium at a glance.
Across a full week, that per-hour premium adds up. The next chart shows the weekly total from the table, so you can compare take-home totals for a 50-hour week at each base rate side by side.
What Counts as Your Regular Rate
The 1.5 multiplier is straightforward, but the number it multiplies, your regular rate, is where mistakes happen. For an hourly worker with no extra pay, the regular rate is simply the hourly wage. But the FLSA defines the regular rate to include most forms of compensation, not just base pay.
Nondiscretionary bonuses, shift differentials, and certain commissions generally must be folded into the regular rate before you apply the multiplier. When they are included, the regular rate rises above the stated hourly wage, and so does the overtime rate. A worker paid 20 dollars an hour plus a production bonus may have a regular rate above 20 dollars for overtime purposes.
For salaried non-exempt employees, the regular rate is usually found by dividing the weekly salary by the number of hours it is meant to cover. Because the details vary by pay structure, the U.S. Department of Labor is the authoritative reference for how the regular rate is built. Understanding how base pay is structured also helps here, which is why our guide on hourly versus salary pay is a useful companion read.
Who Qualifies: Exempt vs Non-Exempt
Overtime rules apply to non-exempt employees. Exempt employees, by contrast, are not entitled to FLSA overtime, and this distinction decides whether the calculation above applies to you at all.
Being paid a salary does not automatically make someone exempt. Exemption generally depends on a combination of how you are paid, how much you are paid, and the actual duties of your job. Common exemptions cover certain executive, administrative, professional, outside sales, and some computer roles that meet specific salary and duties tests. Many salaried workers are still non-exempt and do earn overtime.
Because job titles alone do not settle the question, the safest path is to confirm your status against the current Department of Labor standards rather than assume. Misclassification is a frequent source of unpaid overtime, and the tests can change over time.
State Rules Can Add to the Federal Floor
The FLSA is a floor, not a ceiling. States are free to set overtime rules that are more generous, and several do. The rule that applies to you is whichever one gives you the greater protection.
Some states require daily overtime, paying time and a half after 8 hours in a single day even if the weekly total stays under 40. A few require double time after a longer daily threshold, and some extend overtime to the seventh consecutive day of work. These state rules stack on top of the federal weekly rule, so a worker in a daily-overtime state may earn overtime on a day-by-day basis that federal law alone would not require.
Because these rules vary widely, your state labor agency is the place to confirm the daily thresholds, multipliers, and any industry-specific rules that apply where you work. When you are estimating your overall paycheck, our guide on how to calculate take-home pay walks through the taxes and deductions that come out after gross overtime is added.
Overtime for Employers and Contractors
Overtime is not only a worker’s concern. Anyone quoting labor needs to build the premium into their cost of an hour, because every hour past 40 costs 1.5 times the base rate and changes the true price of a job with heavy hours. Our Hourly Cost Calculator can help you see what an hour of labor really costs once the overtime premium and other loadings are added on top of the base wage.
FAQs About Overtime Pay
How Is Overtime Pay Calculated Under the FLSA?
Multiply your regular hourly rate by 1.5 for each hour worked beyond 40 in a workweek. At 20 dollars an hour, overtime is 30 dollars an hour. The first 40 hours stay at the regular rate.
What Is Time and a Half?
Time and a half is the common name for the federal overtime rate: your regular rate plus half of it again, or the regular rate times 1.5. It is the minimum overtime premium required by the FLSA.
Do Salaried Employees Get Overtime?
Some do. Being salaried does not by itself make you exempt. Non-exempt salaried workers can earn overtime, while exempt employees who meet specific salary and duties tests generally do not. Confirm your status with the Department of Labor.
Is Overtime Calculated Weekly or by Pay Period?
Weekly. The FLSA measures overtime against a single fixed workweek, not a two-week pay period. Hours are not averaged across weeks, so a 50-hour week owes overtime even if the next week is short.
Does My Regular Rate Include Bonuses?
Often yes. Nondiscretionary bonuses, shift differentials, and certain commissions generally must be included in the regular rate before you apply the 1.5 multiplier, which can push the overtime rate above your stated base wage.
Can My State Require More Overtime Than Federal Law?
Yes. States can set stronger rules, such as daily overtime after 8 hours or double time. Where state and federal rules differ, the one more favorable to you applies. Check your state labor agency for details.
Does Paid Time Off Count Toward the 40-Hour Threshold?
Usually not. Overtime is based on hours actually worked, so holiday, vacation, and sick hours you did not work generally do not count toward the 40-hour threshold. Employer policy and state rules can add exceptions.
Sources
Authoritative Sources Used in This Article
Educational note: This article is general information, not legal, tax, or financial advice. Overtime rules, exemptions, and the regular-rate calculation vary by state and by job, and federal standards can change. Confirm the rules that apply to you with the U.S. Department of Labor and your state labor agency, and speak with a qualified professional about your specific situation. Reviewed for accuracy by Prof. Dr. Khalil Mudassar, PhD, as part of our editorial review process. Content last reviewed September 10, 2026.
Author
Shakeel Muzaffar is the Founder and Editor-in-Chief of MultiCalculators.com, bringing over 15 years of experience in digital publishing, product strategy, and online tool development. He leads the platform's editorial vision, ensuring every calculator meets strict standards for accuracy, usability, and real-world value. Shakeel personally oversees content quality, formula verification workflows, and the platform's commitment to publishing tools that are genuinely useful for students, professionals, and everyday users worldwide.
