Free Overtime Pay Calculator

What is Overtime Pay?

Overtime pay is additional compensation provided to employees for hours worked beyond their standard workweek threshold. Under the federal Fair Labor Standards Act (FLSA), non-exempt employees are entitled to overtime pay at a rate of 1.5 times their regular hourly rate for all hours worked over 40 in a workweek. This "time and a half" provision ensures workers are fairly compensated for extended work hours.

The concept of overtime pay originated in the 1930s as part of labor reforms designed to discourage excessive work hours, promote work-life balance, and create employment opportunities by incentivizing employers to hire additional workers rather than overworking existing staff. Today, overtime regulations vary significantly by jurisdiction, with many states implementing more generous provisions than federal minimums.

Not all employees are eligible for overtime. The FLSA classifies workers as either "exempt" or "non-exempt" based on job duties, salary level, and payment method. As of 2025, employees earning less than $43,888 annually ($844 per week) are generally entitled to overtime regardless of job title. Higher-earning employees may be exempt if they perform executive, administrative, professional, outside sales, or certain computer-related duties that meet specific Department of Labor criteria.

Understanding overtime pay is crucial for both employers managing payroll costs and employees ensuring they receive proper compensation. Overtime violations are among the most common wage and hour disputes, with the Department of Labor recovering hundreds of millions in back wages annually. This calculator helps you accurately determine overtime entitlement based on federal standards and state-specific rules.

How to Calculate Overtime Pay

Calculating overtime pay involves several steps that vary depending on whether you're an hourly or salaried employee and which state laws apply. Here's the comprehensive process:

For Hourly Employees:

1. Determine your regular hourly rate: This is your base wage before any overtime multipliers (e.g., $20.00/hour).
2. Count your total hours worked: Include all time on duty during the workweek, excluding unpaid meal breaks of 30 minutes or more. Short rest breaks (5-20 minutes) count as hours worked.
3. Identify overtime hours: Under federal law, subtract 40 from your total weekly hours. Any hours beyond 40 are overtime hours. Some states have daily overtime thresholds (e.g., California requires overtime after 8 hours in a day).
4. Calculate overtime rate: Multiply your regular rate by the overtime multiplier. Standard overtime is 1.5× (time and a half), while some situations require 2× (double-time).
5. Compute overtime pay: Multiply overtime hours by your overtime rate. For example: 5 overtime hours × ($20 × 1.5) = 5 × $30 = $150.
6. Add to regular pay: Your total gross pay = (regular hours × regular rate) + overtime pay.

For Salaried Employees:

Non-exempt salaried employees must first convert their salary to an hourly rate:

1. Calculate weekly salary: Divide annual salary by 52 weeks. For monthly salary, multiply by 12 then divide by 52.
2. Determine regular weekly hours: Typically 40 hours, but may vary based on employment agreement.
3. Calculate hourly rate: Divide weekly salary by regular weekly hours. Example: $41,600/year ÷ 52 ÷ 40 = $20/hour.
4. Follow hourly calculation: Use the steps above with your calculated hourly rate to determine overtime pay.

Overtime Pay Rates Explained

Overtime pay rates vary based on federal and state regulations, with different multipliers applied depending on circumstances:

Time and a Half (1.5×)

The standard overtime rate is 1.5 times your regular hourly rate. Under federal FLSA, this applies to all hours worked beyond 40 in a workweek. If you earn $18/hour, your overtime rate is $18 × 1.5 = $27/hour. Time and a half is the minimum overtime rate—employers can voluntarily pay higher rates, but cannot pay less for non-exempt employees.

Double Time (2×)

Double-time pay is twice your regular rate and is required in specific situations, primarily in certain states. California mandates double-time for hours worked over 12 in a single day or for hours beyond 8 on the seventh consecutive workday in a workweek. For a $20/hour employee, double-time is $40/hour. Federal law does not require double-time, though some union contracts and employer policies provide it for holidays or exceptional circumstances.

Custom Multipliers

Some employers offer enhanced overtime rates beyond legal requirements—for example, 1.75× or 2× for weekend work, holidays, or night shifts. These are voluntary benefits and may be outlined in employment contracts, collective bargaining agreements, or company policies. Always review your specific employment terms to understand applicable rates.

State-Specific Overtime Laws

While federal FLSA establishes baseline overtime protections, many states have enacted more generous rules. When state and federal laws differ, the law more favorable to employees applies. Here are detailed breakdowns of states with unique overtime provisions:

California Overtime Rules

California has the most comprehensive overtime laws in the United States, requiring overtime in multiple scenarios:

• Daily overtime: 1.5× pay for hours worked over 8 in a single workday
• Weekly overtime: 1.5× pay for hours worked over 40 in a workweek
• Seventh-day overtime: 1.5× for the first 8 hours on the 7th consecutive workday
• Daily double-time: 2× pay for hours worked over 12 in a single workday
• Seventh-day double-time: 2× for hours over 8 on the 7th consecutive workday

California applies whichever calculation (daily or weekly) results in greater pay. The state also prohibits private sector employers from offering compensatory time off instead of overtime pay. Agricultural and healthcare workers have some modified rules.

Colorado Overtime Rules

Colorado requires overtime at 1.5× the regular rate for:

• Hours worked over 40 in a workweek (federal standard)
• Hours worked over 12 in a single workday

Unlike California's 8-hour daily threshold, Colorado's 12-hour rule only applies to specific industries. The state uses the calculation that results in more overtime pay for the employee. Colorado also has specific exemptions for certain agricultural, domestic, and seasonal workers.

Alaska Overtime Rules

Alaska mandates overtime at 1.5× for:

• Hours worked over 8 in a single day
• Hours worked over 40 in a workweek

Alaska's daily overtime threshold mirrors California's but without double-time provisions. The 8-hour daily rule doesn't apply to employees working compressed workweek schedules (four 10-hour days) if agreed upon. Alaska's unique geography and industries (fishing, oil) have additional specialized rules.

Nevada Overtime Rules

Nevada has wage-based overtime thresholds:

• Employees earning less than 1.5× Nevada minimum wage ($18.00 as of 2024): Overtime after 8 hours in a 24-hour period OR 40 hours in a week
• Employees earning 1.5× minimum wage or more: Overtime only after 40 hours in a week (federal standard)

This dual-threshold system means lower-wage workers receive more generous daily overtime protections. Nevada also requires premium pay for employees mandated to work on scheduled days off in certain circumstances.

New York Overtime Rules

New York generally follows federal FLSA overtime rules (1.5× after 40 hours weekly) but has unique provisions for:

• Residential employees: Must receive overtime after 44 hours per week
• Manual workers and certain non-professionals: Entitled to one day of rest in seven
• Spread of hours: Additional pay if work exceeds 10 hours in a single day

New York's salary threshold for exemption is higher than federal: $58,500 annually ($1,125/week) for most employers, and $62,400 for NYC large employers (11+ employees). The state also has strict record-keeping requirements and notice provisions.

Federal (FLSA) Standard

States not listed above typically follow federal FLSA standards:

• Overtime at 1.5× for hours over 40 in a workweek
• No daily overtime requirements
• No double-time requirements
• Salary threshold: $43,888 annually ($844/week) as of 2025

Overtime for Salaried Employees

A common misconception is that all salaried employees are exempt from overtime. In reality, salary alone does not determine overtime eligibility—job duties and salary level are equally important. Understanding the distinction between exempt and non-exempt salaried employees is crucial for proper compensation.

Salary Threshold Test

As of 2025, the federal salary threshold for overtime exemption is $43,888 per year ($844 per week). Employees earning below this amount are generally entitled to overtime regardless of job duties, with rare exceptions. This threshold increased from the previous $35,568 and may continue to rise with inflation adjustments.

Some states set higher thresholds. For example, California uses 2× the state minimum wage for full-time employment (approximately $66,560 annually as of 2025), and New York ranges from $58,500 to $62,400 depending on location and employer size. Always check your state's requirements.

Duties Test

Even if earning above the salary threshold, employees must perform specific duties to be exempt. The FLSA recognizes several exemption categories:

• Executive exemption: Primary duty is managing the enterprise or a department, regularly directs two or more employees, and has authority to hire/fire or make significant recommendations
• Administrative exemption: Performs office/non-manual work directly related to management or business operations and exercises discretion on significant matters
• Professional exemption: Work requires advanced knowledge in a field of science or learning, typically acquired through prolonged specialized education (e.g., lawyers, doctors, engineers, teachers)
• Computer employee exemption: Employed as computer systems analyst, programmer, software engineer, or similar role earning at least $50/hour or $115,440/year
• Outside sales exemption: Primary duty is making sales away from employer's place of business

Calculating Overtime for Non-Exempt Salaried Employees

If you're a salaried employee entitled to overtime, your employer must track hours and pay overtime for work beyond 40 hours weekly. The calculation process:

1. Convert salary to hourly rate: Annual salary ÷ 52 weeks ÷ regular weekly hours (typically 40)
2. Calculate overtime hours: Total weekly hours - 40
3. Calculate overtime pay: Overtime hours × (hourly rate × 1.5)
4. Total pay: Regular weekly salary + overtime pay

Example: You earn $41,600/year and work 48 hours in a week. Your hourly rate is $41,600 ÷ 52 ÷ 40 = $20/hour. Overtime is 8 hours × ($20 × 1.5) = $240. Your weekly pay is ($41,600 ÷ 52) + $240 = $800 + $240 = $1,040.

Who is Eligible for Overtime Pay?

Overtime eligibility depends on federal FLSA classification and applicable state laws. Understanding your classification is essential for ensuring proper compensation. Here's a comprehensive breakdown:

Non-Exempt Employees (Eligible)

Most hourly workers are non-exempt and entitled to overtime. This includes:

• Hourly employees in retail, hospitality, manufacturing, and service industries
• Clerical and administrative support staff
• Manual laborers, construction workers, and maintenance staff
• Customer service representatives and call center workers
• Healthcare support workers (CNAs, medical assistants, home health aides)
• Salaried employees earning below the threshold ($43,888/year federally as of 2025)
• Salaried employees whose duties don't meet exemption criteria

Exempt Employees (Not Eligible)

Certain employees are exempt from overtime if they meet both salary and duties tests:

• Executive employees managing businesses or departments with hiring authority
• Administrative employees exercising independent judgment on significant matters
• Learned professionals (lawyers, doctors, engineers, teachers with degrees)
• Creative professionals (artists, writers, musicians performing original creative work)
• Computer professionals earning $50+/hour or $115,440+/year
• Outside sales employees working primarily off-site
• Certain highly compensated employees ($132,964+/year with minimal exempt duties)

Special Categories

Some workers have unique overtime rules:

• Emergency responders: Firefighters and law enforcement may have different thresholds (e.g., 212-hour monthly period)
• Healthcare workers: Hospitals can use 14-day periods instead of weekly calculations with special rules
• Agricultural workers: Generally exempt federally but may be covered under state laws
• Domestic workers: Live-in domestic workers have different overtime requirements
• Seasonal/recreational workers: May be exempt if meeting specific criteria
• Independent contractors: Not employees, therefore not covered by overtime laws (though misclassification is a major issue)

Overtime Pay vs Compensatory Time (Comp Time)

Compensatory time, or "comp time," is paid time off provided instead of overtime pay. While it may seem like a flexible alternative, comp time is heavily restricted under federal law and prohibited entirely in some states.

Federal Law (Private Sector)

Under FLSA, private sector employers cannot offer comp time in lieu of overtime pay. Non-exempt employees must receive overtime wages at 1.5× their regular rate for hours worked over 40 per week. Agreements between employers and employees to substitute comp time are illegal and unenforceable, even if employees prefer time off.

This prohibition exists to prevent abuse and ensure workers receive proper compensation for extended hours. Employers cannot require, coerce, or suggest comp time as an alternative—doing so violates federal law and can result in Department of Labor penalties and employee lawsuits.

Public Sector Exception

Government employers (federal, state, local agencies) may offer comp time under specific conditions:

• Must be agreed upon before overtime work is performed
• Accrued at 1.5 hours of comp time for each overtime hour worked
• Maximum accrual limits: 240 hours for most employees, 480 hours for public safety/emergency workers
• Employees must be allowed to use accrued comp time within a reasonable period
• Unused comp time must be paid out at termination at the employee's final regular rate or overtime rate average, whichever is higher

State Variations

Some states have stricter rules than federal law. California, for example, completely prohibits comp time for private sector employees under all circumstances. Other states may allow it only in specific industries or with explicit written agreements. Always verify your state's requirements.

Common Overtime Calculation Mistakes

Overtime calculation errors cost workers billions in lost wages annually. Understanding common mistakes helps ensure accurate pay and legal compliance. Here are the most frequent errors:

1. Not Including Bonuses in Regular Rate

Many employers incorrectly calculate overtime based solely on base hourly wages, excluding nondiscretionary bonuses, shift differentials, and commissions. Under FLSA, the "regular rate" for overtime purposes must include all forms of compensation except specific exclusions (gifts, discretionary bonuses, travel expense reimbursements).

Example: You earn $20/hour and receive a $100 weekly production bonus. Your regular rate is ($20 × 40 hours + $100) ÷ 40 = $22.50/hour. Overtime should be calculated at $22.50 × 1.5 = $33.75/hour, not $30/hour.

2. Misunderstanding Workweek Definition

Overtime is calculated based on a fixed 168-hour workweek (seven consecutive 24-hour periods), not pay periods. Employers cannot average hours across two weeks to avoid overtime. If you work 50 hours one week and 30 the next, you're owed 10 hours of overtime for week one—averaging to 40 per week is illegal.

Workweeks must be consistently defined (e.g., Sunday-Saturday, Monday-Sunday) and cannot be manipulated to circumvent overtime requirements.

3. Ignoring "Off-the-Clock" Work

All time an employee is "suffered or permitted to work" counts as hours worked, including:

• Pre-shift preparation (booting up computers, reviewing emails, preparing workspace)
• Post-shift tasks (closing procedures, securing facilities, completing reports)
• Working through unpaid meal breaks (even a few minutes of work voids the break deduction)
• Mandatory training, meetings, or travel time
• Taking work calls or emails outside regular hours

Employers cannot require or encourage off-the-clock work. Failure to count all working time results in overtime violations.

4. Incorrectly Deducting Meal Breaks

Unpaid meal breaks (typically 30+ minutes) can only be deducted if the employee is completely relieved from duty. If you must remain on-call, answer phones, or be available to customers, the break is compensable work time. Even if you voluntarily perform work during a break, that time must be paid.

Short rest breaks (5-20 minutes) are always counted as hours worked and cannot be deducted from overtime calculations.

5. Confusing Exempt and Non-Exempt Classifications

Job titles don't determine exemption status—duties and salary do. An employee titled "manager" or "administrator" may still be non-exempt if they don't meet the duties test. Similarly, paying a salary doesn't automatically make someone exempt. Misclassification is one of the most common wage violations.

Best Practices for Employers: Managing Overtime Compliance

Proper overtime management protects employers from costly violations while ensuring fair employee compensation. Implement these best practices:

Accurate Classification and Documentation

• Conduct regular audits of exempt/non-exempt classifications using DOL criteria
• Document job duties analysis for exempt positions, not just titles or salaries
• Review classifications when job duties change significantly
• Maintain compliant records: hours worked, wages paid, deductions for at least 3 years

Accurate Time Tracking Systems

• Implement reliable time clock or tracking software for all non-exempt employees
• Train employees on proper clock-in/out procedures, including meal breaks
• Prohibit off-the-clock work and enforce the policy consistently
• Round time fairly if using rounding (e.g., to nearest quarter hour, neutral over time)

Clear Overtime Policies

• Establish written overtime authorization procedures (even if you must pay unauthorized OT, policies help manage costs)
• Communicate policies clearly in employee handbooks and during onboarding
• Set expectations for managers to monitor and approve overtime
• Address state-specific requirements (daily overtime, double-time)

Regular Training and Compliance Review

• Train HR and payroll staff on current federal and state overtime regulations
• Educate managers on properly tracking and authorizing employee hours
• Review payroll calculations periodically for accuracy
• Stay updated on regulation changes, especially salary threshold adjustments
• Consider consulting an employment attorney or HR specialist for complex situations

Frequently Asked Questions

Overtime Pay Glossary

FLSA (Fair Labor Standards Act):

Federal law establishing minimum wage, overtime pay, recordkeeping, and child labor standards. Enacted in 1938.

Non-Exempt Employee:

Worker entitled to overtime pay for hours worked beyond 40 per week (or applicable state threshold). Includes most hourly employees and some salaried workers.

Exempt Employee:

Worker not entitled to overtime pay under FLSA. Must meet salary threshold and duties test for exemption (executive, administrative, professional, etc.).

Regular Rate:

Hourly rate used to calculate overtime pay, including base wages plus nondiscretionary bonuses, shift differentials, and commissions divided by hours worked.

Time and a Half:

Overtime pay rate of 1.5 times the regular hourly rate. Standard under federal law for hours over 40 per week.

Double-Time:

Overtime pay rate of 2 times the regular hourly rate. Required in some states (e.g., California) for specific circumstances like hours over 12 in a day.

Workweek:

Fixed, recurring period of 168 hours (seven consecutive 24-hour periods) used to calculate overtime. Can start any day/time but must be consistent.

Compensatory Time (Comp Time):

Paid time off given instead of overtime pay. Only allowed for public sector employees under federal law. Accrued at 1.5 hours for each overtime hour worked.

White Collar Exemption:

Collective term for executive, administrative, and professional exemptions from overtime requirements under FLSA.

Suffered or Permitted to Work:

FLSA standard meaning all time an employee is allowed to work counts as hours worked, including unauthorized or unrequested work time.