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How to Calculate Overtime Pay (2026 Guide)

Learn the exact overtime pay formula, see worked examples for hourly and salaried employees, and find out how time and a half (1.5x) and double time (2x) actually translate into dollars on your paycheck.

The Overtime Pay Formula

Under the federal Fair Labor Standards Act (FLSA), the overtime pay formula is simple:

Overtime Pay = Regular Hourly Rate × 1.5 × Overtime Hours

To get your total weekly gross pay:

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

Step-by-Step: 5 Steps to Calculate Overtime Pay

  1. 1

    Identify your regular hourly rate

    For hourly workers, this is your normal pay rate. For salaried non-exempt workers, divide your weekly salary by 40 to get the equivalent hourly rate.

  2. 2

    Add non-discretionary bonuses and commissions

    Performance bonuses, shift differentials, and commissions must be folded into your weekly earnings before computing the regular rate. Divide total earnings by hours worked to find the true regular rate.

  3. 3

    Count your overtime hours

    Under federal law, any hour over 40 in a workweek is overtime. In California, Alaska, and Nevada (under $18/hr), any hour over 8 in a day also counts. In Colorado, it's over 12 in a day.

  4. 4

    Apply the multiplier

    Multiply each overtime hour by 1.5 × your regular rate. For California double time (over 12 hrs/day or 8+ hrs on the 7th consecutive day), use 2.0 instead.

  5. 5

    Add regular pay and overtime pay

    Your total gross weekly pay = (Regular Hours × Regular Rate) + (OT Hours × OT Rate) + (DT Hours × DT Rate, if any).

Worked Examples

Example 1: Hourly worker, 50-hour week

Sarah earns $18/hour and works 50 hours one week in Texas (federal FLSA rules).

Regular pay: 40 × $18 = $720.00
OT rate: $18 × 1.5 = $27.00
OT pay: 10 × $27 = $270.00
Total gross: $990.00

Example 2: California 14-hour day

Marcus earns $20/hour and works a single 14-hour shift in California.

Regular (first 8 hrs): 8 × $20 = $160.00
Time-and-a-half (hrs 8–12): 4 × $30 = $120.00
Double time (hrs 12–14): 2 × $40 = $80.00
Day total: $360.00

Example 3: Salaried non-exempt employee

Lin earns a $1,000/week salary and works 45 hours.

Regular hourly rate: $1,000 ÷ 40 = $25.00
OT rate: $25 × 1.5 = $37.50
OT pay: 5 × $37.50 = $187.50
Total gross: $1,187.50

Example 4: Hourly worker + weekly bonus

Jordan earns $15/hour, works 48 hours, and receives a $120 non-discretionary production bonus that week.

Straight-time earnings: (48 × $15) + $120 = $840
True regular rate: $840 ÷ 48 = $17.50
OT premium: 8 × ($17.50 × 0.5) = $70
Total gross: $910.00

Time and a Half Quick-Reference Chart

Hourly RateTime and a Half (1.5x)Double Time (2x)
$10.00$15.00$20.00
$12.00$18.00$24.00
$15.00$22.50$30.00
$18.00$27.00$36.00
$20.00$30.00$40.00
$22.00$33.00$44.00
$25.00$37.50$50.00
$28.00$42.00$56.00
$30.00$45.00$60.00
$35.00$52.50$70.00
$40.00$60.00$80.00
$45.00$67.50$90.00
$50.00$75.00$100.00

State Overtime Rules That Change the Calculation

Most states follow federal FLSA (40-hour weekly trigger only). These five states have their own rules that may give you more overtime pay than the formula above suggests:

All other states follow the federal 40-hour weekly rule. See all 50 state calculators →

6 Common Overtime Calculation Mistakes

  • Using base hourly rate when bonuses or commissions should bump the regular rate up
  • Averaging hours across two workweeks (illegal — each week stands alone)
  • Treating 'salaried' as automatically 'exempt' — salary alone never determines exemption
  • Forgetting California/Colorado/Alaska/Nevada daily overtime triggers
  • Calculating tipped overtime on the tipped cash wage instead of full minimum wage
  • Letting employers offer comp time instead of overtime pay (illegal in the private sector)

Are You Exempt or Non-Exempt?

Only non-exempt employees are entitled to overtime. To be classified as exempt under FLSA in 2026, you must meet all three of these tests:

Salary basis

Paid a predetermined salary that doesn't vary week to week

Salary level

At least $844/week ($43,888/year) federally — higher in NY/CA

Duties test

Primarily executive, administrative, professional, computer, or outside sales work

Frequently Asked Questions

How do you calculate overtime pay?

Multiply your regular hourly rate by 1.5 to get your overtime (time-and-a-half) rate, then multiply that rate by the number of overtime hours worked. Under federal FLSA, overtime applies to all hours over 40 in a single workweek. Some states (CA, AK, NV, CO) also require daily overtime after 8 or 12 hours.

What is the formula for calculating overtime pay?

Overtime pay = (Regular hourly rate × 1.5) × Overtime hours. Total weekly pay = (Regular hours × Regular rate) + (OT hours × Regular rate × 1.5). For double time (California after 12 hrs/day), use a 2.0 multiplier instead of 1.5.

How do you calculate overtime for a salaried employee?

First convert salary to an hourly rate: weekly salary ÷ 40 = regular hourly rate. Then multiply that rate by 1.5 for overtime hours over 40. Note: in Pennsylvania, the fluctuating workweek method is illegal — salaried non-exempt employees always get 1.5x, not 0.5x.

How do you calculate time and a half for $20 an hour?

$20 × 1.5 = $30 per overtime hour. If you worked 50 hours in one week, that's 40 × $20 ($800 regular) + 10 × $30 ($300 overtime) = $1,100 total gross pay.

Does overtime include bonuses and commissions?

Yes. Non-discretionary bonuses, shift differentials, and commissions must be added to weekly straight-time earnings before computing the regular rate. Divide total weekly earnings by total hours worked to find the true regular rate, then apply the 1.5x multiplier.

How is overtime calculated for tipped employees?

Overtime is always calculated on the full minimum wage — not the lower cash tipped wage. Multiply the full minimum wage by 1.5, then subtract the maximum tip credit to get the cash overtime rate the employer must pay directly.

Is overtime calculated daily or weekly?

Federal FLSA only requires weekly overtime (over 40 hours). California, Alaska, and Nevada (under $18/hr) require daily overtime after 8 hours. Colorado requires it after 12 hours or 12 consecutive hours. All other states follow the weekly-only rule.

How do I calculate overtime for a 7-day workweek?

Add daily hours together for the full workweek. Apply your state's threshold (40 hours federal; 8/12 daily in CA; etc.). In California and Kentucky, the 7th consecutive day triggers additional premium pay (1.5x for first 8 hrs, 2x beyond).

Skip the math — use our free calculator

Plug in your hourly wage and hours worked. We'll apply your state's exact 2026 overtime rules and show your gross pay instantly.

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