Overtime Rate Per Hour: How to Calculate It (With Examples) 2026

The Short Answer

Your overtime rate per hour is your regular rate of pay × 1.5. If you earn $20 an hour, your overtime rate is $30 an hour. Under the federal Fair Labor Standards Act (FLSA), that rate applies to every hour a covered, nonexempt employee works beyond 40 in a workweek.

The only tricky part is the word *regular rate*. For a simple hourly job it is just your wage. For anyone paid bonuses, differentials, or two different rates, it is an average you have to work out first.

Step 1: Find Your Regular Rate

| How you are paid | Regular rate |

| --- | --- |

| One hourly wage, nothing else | Your hourly wage |

| Salaried nonexempt, salary covers 40 hours | Weekly salary ÷ 40 |

| Hourly + nondiscretionary bonus | (Hourly pay + bonus) ÷ total hours |

| Two or more hourly rates | Total straight-time pay ÷ total hours |

Step 2: Multiply by 1.5

| Regular rate | Overtime rate per hour |

| --- | --- |

| $15.00 | $22.50 |

| $17.50 | $26.25 |

| $20.00 | $30.00 |

| $22.00 | $33.00 |

| $25.00 | $37.50 |

| $30.00 | $45.00 |

For a longer table, see the overtime pay chart.

Example 1: Simple Hourly Worker

$18 an hour, 44 hours worked.

• Overtime rate: $18 × 1.5 = $27.00/hour
• Regular pay: 40 × $18 = $720
• Overtime pay: 4 × $27 = $108
• Gross week: $828

Example 2: Salaried Nonexempt

A $800 weekly salary that is understood to cover 40 hours.

• Regular rate: $800 ÷ 40 = $20
• Overtime rate: $30/hour
• 45-hour week: $800 + (5 × $30) = $950

If your salary is meant to cover a different number of hours, the math changes. The salaried nonexempt guide explains why.

Example 3: Hourly Plus a Weekly Bonus

$20 an hour, 48 hours, and a $96 production bonus.

• Straight-time pay: 48 × $20 = $960, plus $96 bonus = $1,056
• Regular rate: $1,056 ÷ 48 = $22/hour
• Overtime rate: $33/hour (not $30)
• Half-time premium owed: 8 × $11 = $88
• Gross week: $1,144

The bonus raised the overtime rate by $3. The overtime bonus calculator handles this for you.

Common Mistakes

• Using the base wage when a bonus exists. Promised bonuses almost always enter the regular rate.
• Averaging two weeks together. Each workweek stands alone.
• Forgetting state rules. In California, overtime can start after 8 hours in a day. See the 2026 overtime laws by state.

Quick Answers

Is overtime 1.5 times the hourly rate? Yes, for most workers under federal law. Some states and contracts require 2× for certain hours.

How do I calculate overtime per hour on a salary? Divide the weekly salary by the hours it is meant to cover, then multiply by 1.5 — only if you are nonexempt.

Do taxes change my overtime rate? No. The rate is calculated on gross pay. Estimate take-home in the overtime tax calculator.

Check your own number in the free overtime calculator or the time and a half calculator.