How to Calculate Overtime Pay: 1.5x Formula
Federal law sets overtime at 1.5× your regular hourly rate for every hour worked beyond 40 in a workweek. Multiply your hourly rate by 1.5, then by the number of overtime hours.
To calculate overtime pay, multiply your regular hourly rate by 1.5, then by the hours worked over 40 in the workweek. Under the Fair Labor Standards Act (FLSA), most non-exempt employees must receive this time-and-a-half rate.
Worked example
At $25 an hour with 50 hours in a week: regular pay is 40 × $25 = $1,000. The overtime rate is $37.50, so 10 overtime hours pay $375. Total weekly pay is $1,375.
| Hourly rate | OT rate (1.5×) | 5 OT hrs/week | 10 OT hrs/week | 10 OT hrs × 52 weeks |
|---|---|---|---|---|
| $18 | $27.00 | $135 | $270 | $14,040 |
| $25 | $37.50 | $187.50 | $375 | $19,500 |
| $35 | $52.50 | $262.50 | $525 | $27,300 |
The regular rate includes more than base pay
The FLSA bases overtime on the regular rate, not only the base wage. Non-discretionary bonuses, shift differentials and commissions must be added. Example: $800 for 40 hours plus a $100 production bonus for a 45-hour week gives a regular rate of $900 ÷ 45 = $20. Overtime owed is 5 × $10 half-time premium = $50 on top of the straight-time pay.
Who qualifies for overtime
- Non-exempt employees, hourly or salaried, are entitled to overtime after 40 hours a week.
- Exempt employees must meet both a duties test and the salary threshold; being salaried alone is not enough.
- The workweek is a fixed 7-day period; hours cannot be averaged over two weeks.
- Some states add daily overtime: California pays 1.5× after 8 hours a day and 2× after 12.
Is overtime taxed more?
No. Overtime is taxed at your normal rates, but a larger paycheck can be withheld at a higher rate. Any extra withholding is settled when you file your return.
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Open the calculatorFrequently asked questions
How is overtime pay calculated?
Multiply your regular hourly rate by 1.5 and then by the hours worked over 40 in the workweek. At $25/hr, each overtime hour pays $37.50.
What is time and a half for $20 an hour?
Time and a half for $20 an hour is $30 per overtime hour.
Do salaried employees get overtime?
Only if they are non-exempt. Exempt status requires meeting both the duties test and the salary threshold.
Are bonuses included in overtime pay?
Non-discretionary bonuses must be included in the regular rate used to calculate overtime.