Overtime pay formula
Overtime rate = Hourly rate × Multiplier
Total pay = Rate × Regular hours + Overtime rate × Overtime hours + 2 × Rate × Double-time hours
Total pay = Rate × Regular hours + Overtime rate × Overtime hours + 2 × Rate × Double-time hours
Example: At $25 an hour, 40 regular hours pay $1,000. 10 overtime hours at time and a half ($37.50) add $375, for $1,375 of gross pay. Your average across all 50 hours is $27.50 an hour.
State overtime rules to know
- California: 1.5× after 8 hours in a day, 2× after 12 hours, plus 7th-day rules.
- Alaska and Nevada also have daily overtime in some situations.
- Salaried workers earning below the federal salary threshold are generally non-exempt and eligible.
Track your hours with the hours worked calculator.
Frequently asked questions
How is overtime pay calculated?
Overtime rate = regular hourly rate × 1.5. Multiply by the overtime hours and add regular pay. At $25 an hour with 10 overtime hours: 40 × $25 = $1,000 regular, 10 × $37.50 = $375 overtime, $1,375 in total.
Who is entitled to overtime?
Under the federal Fair Labor Standards Act, non-exempt employees must get at least 1.5× their regular rate for hours over 40 in a workweek. Many salaried professionals, managers and administrators are exempt.
What is double time?
Double time is 2× the regular rate. Federal law does not require it, but some states (such as California, for hours over 12 in a day) and many union contracts do.
Do bonuses affect the overtime rate?
Yes. Non-discretionary bonuses and shift differentials must be included in the “regular rate” used for overtime, which can raise it above your base wage.