Overtime Calculator

How Overtime Pay Actually Works

Overtime seems straightforward until you look at the details. The Fair Labor Standards Act requires employers to pay 1.5 times the regular rate for every hour worked beyond 40 in a single workweek. That part most people understand. What catches many workers off guard is how the "regular rate" is calculated when the pay structure is more complex than a simple hourly wage.

If you earn a flat hourly rate, the math is clean. A $22/hour worker gets $33/hour for overtime. But if your compensation includes shift differentials, non-discretionary bonuses, commissions, or piece-rate pay, those amounts must be included in your regular rate calculation before applying the 1.5 multiplier. An employer who calculates overtime on base pay alone while ignoring your regular $2/hour night shift differential is underpaying you — and it happens frequently.

State Laws That Go Beyond Federal

Several states provide overtime protections that exceed the federal minimum. California requires daily overtime — time and a half after 8 hours in a single day and double time after 12 hours, regardless of weekly totals. This means a California employee who works four 10-hour days (40 hours total) is owed 8 hours of overtime pay even though they hit exactly 40 hours for the week. Alaska, Nevada, and Colorado have similar daily overtime provisions with varying thresholds.

Some states also have lower weekly thresholds. If your state requires overtime after 44 hours rather than 40, your employer follows the rule more favorable to you — which is always the federal 40-hour threshold since it is lower. State law can only add protections, never remove them.

Who Is Exempt From Overtime

Not everyone qualifies for overtime, and employers sometimes misclassify workers to avoid paying it. Under the FLSA, salaried employees earning above $43,888 annually (the 2024 threshold, with increases planned) who perform executive, administrative, or professional duties are generally exempt. The job title alone does not determine exemption — the actual duties matter. Calling someone a "manager" while they spend 90% of their time doing the same work as hourly employees does not make them exempt.

Common misclassifications include assistant managers who primarily do non-managerial work, IT support staff labeled as "computer professionals," and inside salespeople classified as outside sales. If you are salaried, work over 40 hours regularly, and suspect you should be receiving overtime, your state labor department offers free consultation on whether your classification is correct.

Calculating Overtime on a Salary

If a non-exempt salaried employee works overtime, their employer must convert the salary to an hourly rate to calculate the overtime premium. A $800/week salary for a standard 40-hour week means a regular rate of $20/hour. Hours beyond 40 must be paid at $30/hour (1.5×). Some employers pay the overtime as a half-rate ($10 extra per hour) since the salary already covers the first 40 hours at straight time — this is legal and equivalent mathematically.

What is time and a half?

Time and a half means 1.5 times your regular hourly rate. If you earn $20/hour, time and a half is $30/hour. This is the standard overtime rate required by federal law for hours worked beyond 40 in a workweek. Some situations call for double time (2× rate), which is $40/hour for a $20 worker.

Is overtime after 8 hours or 40 hours?

Under federal law, overtime is calculated weekly — after 40 hours in a workweek. However, California, Alaska, Nevada, and Colorado require daily overtime after 8 hours. If you live in one of these states, you may be owed overtime even if your total weekly hours are under 40.

Can my employer force me to work overtime?

In most states, yes. Federal law does not limit the number of hours an adult employee can work, as long as overtime is properly paid. Some union contracts and specific state laws provide protections, but for most at-will employees, refusing mandatory overtime can be grounds for termination. The employer must pay the overtime premium regardless.

Does overtime count toward my 401(k)?

That depends on your employer's plan. Many plans calculate contributions based on total compensation including overtime. Some cap contributions at regular earnings only. Check your plan document or ask HR — if overtime is excluded, you may be missing out on employer match on those additional earnings.