Overtime Calculator: How Overtime Pay Works & What You're Owed

The FLSA Overtime Rule

The Fair Labor Standards Act (FLSA) is the federal law governing overtime in the United States. The core rule: non-exempt employees must receive at least 1.5 times their regular rate of pay for every hour worked beyond 40 in a single workweek.

The threshold is weekly — not daily (federally), not biweekly. A workweek is any fixed, recurring 168-hour period (seven consecutive 24-hour periods). Your employer defines when the workweek starts; it does not have to be Monday or Sunday.

The Department of Labor recovered $274 million in back wages for overtime violations in fiscal year 2023, affecting more than 163,000 workers. Overtime rules matter, and violations are common.

The Overtime Pay Formula

The FLSA formula is:

OT Pay = (Regular Rate × 1.5) × OT Hours

Worked Example

You earn $18/hour and work 47 hours in a week.

Without overtime protections, those 7 extra hours at flat $18 would pay $126 — not $189. The premium adds $63 for a single week of modest overtime. Sustained over a year, the difference is significant.

Exempt vs. Non-Exempt Employees

Not every worker qualifies for overtime. The FLSA splits workers into two categories.

Non-Exempt Employees

Non-exempt employees must receive overtime for all hours over 40 per week. Most hourly workers fall here automatically. Salaried employees earning less than the federal salary threshold — $684 per week ($35,568 per year) as of 2024— are also non-exempt regardless of job title or duties.

Exempt Employees

To qualify as exempt, a worker must generally pass both a salary test and a duties test. They must earn at least $684/week and perform bona fide executive, administrative, or professional duties as defined by the DOL. The three standard duties tests:

• Executive exemption: Primary duty is managing the enterprise or a recognized department, regularly directs two or more full-time employees, and has authority to hire or fire (or whose recommendations on these carry significant weight).
• Administrative exemption: Primary duty is office or non-manual work directly related to the management or general business operations, and the position requires the exercise of discretion and independent judgment on significant matters.
• Professional exemption: Primary duty requires advanced knowledge in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction (e.g., doctors, lawyers, engineers, CPAs).

Highly compensated employees earning above $107,432/yearface a lighter duties test. Being labeled a “manager” or “supervisor” by title alone does not create an exemption. Misclassification is one of the most common FLSA violations.

States With Stronger Overtime Rules

Federal law is the floor. Several states exceed it. When state and federal rules conflict, workers receive whichever standard is more favorable.

California's rules are the most employee-friendly. A California worker on a 10-hour shift earns overtime pay for 2 of those hours even if they've only worked 40 hours total for the week.

Double Time: When It Applies

Double time means earning 2× your regular hourly rate. There is no federal mandate for double time — only California state law requires it. Three situations where double time applies:

• California law: After 12 hours in a workday and for all hours on the 7th consecutive workday in a workweek (after the first 8 hours on that 7th day, which are paid at 1.5×).
• Employer policy: Many companies voluntarily offer double time for holiday shifts, emergency call-ins, or extended hours beyond a set threshold.
• Union contracts: Collective bargaining agreements frequently include double-time provisions that exceed state and federal minimums.

The Regular Rate of Pay

The FLSA requires overtime to be based on your “regular rate,” which is not always just your base hourly wage. The regular rate is a blended figure that, per DOL guidance, must include most forms of compensation paid in the workweek — including:

• Non-discretionary bonuses (production bonuses, attendance bonuses, safety bonuses promised in advance)
• Shift differentials (extra pay for evening, night, or weekend shifts)
• Commissions earned during the workweek

Discretionary bonuses, vacation pay, and overtime premiums themselves are excluded from the regular rate calculation. When non-discretionary bonuses are added, the effective regular rate rises — and so does the overtime premium owed.

Blended (Weighted) Overtime Rate for Multiple Pay Rates

Some employees work at different pay rates within the same workweek — for example, a warehouse worker who earns $16/hr on day shift and $19/hr on night shift. The FLSA allows two methods for calculating overtime in this case:

• Rate-in-effect method: Pay 1.5× the rate in effect when the overtime hours occur. This requires knowing exactly when overtime hours happened.
• Weighted average method: Calculate a blended rate by dividing total straight-time earnings for all hours by total hours worked. Then pay an overtime premium of 0.5× that blended rate for overtime hours (since straight time for all hours was already included in the base calculation).

Example of weighted average: 30 hours at $16 ($480) + 15 hours at $19 ($285) = $765 total for 45 hours. Blended rate: $765 ÷ 45 = $17.00/hr. Overtime premium owed on 5 OT hours: 5 × $17.00 × 0.5 = $42.50. Total pay: $765 + $42.50 = $807.50.

Overtime for Salaried Non-Exempt Employees

Salaried non-exempt employees earn a fixed salary but still qualify for overtime. The DOL method for calculating their overtime rate:

1. Divide the weekly salary by the total hours worked that week to get the regular rate.
2. Multiply the regular rate by 0.5 (the premium portion) for each overtime hour — since straight time for all hours is already covered by the salary.

Example: A salaried non-exempt employee earns $800/week and works 50 hours. Regular rate: $800 ÷ 50 = $16/hr. Overtime premium: 10 OT hours × $16 × 0.5 = $80. Total pay: $800 + $80 = $880.

Comp Time: Public vs. Private Sector

Compensatory time off (“comp time”) — granting paid time off instead of overtime wages — is not permitted for private-sector employees under the FLSA. A private employer cannot legally offer you time off instead of overtime pay owed to you.

State and local government employers are permitted under the FLSA to offer comp time arrangements, at a rate of 1.5 hours of leave for each overtime hour worked (up to certain caps). Federal civilian employees have separate rules under the Federal Employees Pay Act.

If your private-sector employer routinely offers comp time in place of overtime pay, that arrangement likely violates federal law.

Frequently Asked Questions

How is overtime pay calculated?

Under the FLSA, overtime pay equals your regular rate multiplied by 1.5, then multiplied by overtime hours. Formula: OT Pay = (Regular Rate × 1.5) × OT Hours. At $18/hr working 47 hours: 40 regular hours at $18 = $720, plus 7 overtime hours at $27 = $189, totaling $909 for the week.

How many hours is overtime?

Under federal FLSA law, overtime begins after 40 hours worked in a single workweek. However, California, Alaska, and Nevada require overtime after 8 hours in a single workday. Colorado requires overtime after 12 hours in a workday in addition to the 40-hour weekly rule.

Are salaried employees entitled to overtime?

It depends on their classification. Salaried employees earning less than $684/week ($35,568/year as of 2024) are non-exempt and must receive overtime pay. Above that threshold, workers must also pass a duties test (executive, administrative, or professional duties) to be exempt. Being salaried alone does not create an exemption.

What is the difference between overtime and double time?

Overtime (time-and-a-half) pays 1.5× your regular rate for hours over 40 per week under federal law. Double time pays 2× your regular rate and is not required by federal law. California mandates double time after 12 hours in a workday or for the first 8 hours on the 7th consecutive workday. Outside California, double time only exists through employer policy or union contracts.

Which states have daily overtime rules?

California, Alaska, and Nevada require overtime after 8 hours in a single workday. Colorado requires overtime after 12 hours in a workday in addition to the 40-hour weekly threshold. All other states follow federal FLSA rules — overtime only kicks in after 40 hours in a workweek, with no daily overtime requirement.