How to Calculate Overtime Pay
Overtime pay rewards the extra hours you work beyond a standard week. In the US, the Fair Labor Standards Act (FLSA) requires most non-exempt employees to be paid at least 1.5 times their regular rate for hours worked over 40 in a workweek.
The overtime formula
The most common multiplier is 1.5 (time and a half). Some employers or contracts pay 2× (double time) for holidays or hours beyond a second threshold.
A worked example
Suppose you earn $25 an hour, work 40 regular hours and 10 overtime hours in a week. Your overtime rate is $25 × 1.5 = $37.50. That week you earn $1,000 in regular pay plus $375 in overtime, for $1,375 total.
| Hourly rate | OT rate (1.5×) | 10 OT hours/week | OT per year (52 wks) |
|---|---|---|---|
| $18 | $27.00 | $270 | $14,040 |
| $25 | $37.50 | $375 | $19,500 |
| $35 | $52.50 | $525 | $27,300 |
Who qualifies for overtime?
- Non-exempt employees (most hourly workers) are entitled to overtime.
- Exempt employees — typically salaried roles meeting specific duties and a salary threshold — usually are not.
- Some states have stricter rules, such as daily overtime after 8 hours.
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Open the calculatorFrequently asked questions
How is overtime pay calculated?
Multiply your overtime hours by your hourly rate times the overtime multiplier (usually 1.5). For example, $25/hr at time and a half is $37.50 per overtime hour.
What is time and a half?
Time and a half means 1.5× your regular hourly rate, the standard US overtime rate for non-exempt employees working over 40 hours a week.
Do salaried employees get overtime?
Salaried employees who are classified as exempt generally do not receive overtime, while non-exempt employees do, regardless of being paid a salary or hourly.