Overtime Pay Calculator

Overtime Pay: Rules, Rates, and How to Calculate It

Overtime pay is a fundamental protection for American workers, ensuring that employees are fairly compensated when they work beyond standard hours. Under federal law, the Fair Labor Standards Act (FLSA) requires most employers to pay non-exempt employees at least one and a half times their regular hourly rate for every hour worked over 40 in a single workweek. Understanding how overtime is calculated helps you verify that your paycheck is accurate and plan your finances around weeks with extra hours.

Federal Overtime Rules Under the FLSA

The FLSA establishes the baseline overtime threshold at 40 hours per workweek. A workweek is any fixed, recurring 168-hour period (seven consecutive 24-hour days). It does not have to align with the calendar week. Any hours worked beyond 40 in that period must be compensated at no less than 1.5 times the employee's regular rate of pay. Employers cannot average hours over two or more weeks to avoid paying overtime — each workweek stands on its own.

Exempt vs. Non-Exempt Employees

Not all workers are entitled to overtime. The FLSA provides exemptions for certain categories of employees, primarily those in executive, administrative, professional, computer, and outside sales roles who earn above a specific salary threshold. As of 2024, employees must generally earn at least $684 per week ($35,568 annually) on a salary basis to qualify for the white-collar exemption, though this threshold has been the subject of proposed increases. If you are classified as exempt, your employer is not required to pay you overtime regardless of hours worked.

State Overtime Laws

Several states impose overtime requirements that go beyond federal law. California, for example, requires overtime pay (1.5x) for any hours worked beyond 8 in a single day, and double-time pay (2x) for hours beyond 12 in a day or beyond 8 on the seventh consecutive day worked in a workweek. Alaska and Nevada also have daily overtime thresholds. Colorado requires overtime after 12 hours in a day or 40 hours in a week. Always check your state's specific rules, as they may provide greater protections than federal law.

Double-Time Pay

Double-time pay — paying twice the regular hourly rate — is not required by federal law but is mandated in some states (notably California) and is common in union contracts. This calculator includes an optional double-time threshold so you can model scenarios where hours beyond a certain point are paid at 2x your base rate. Double-time significantly increases weekly earnings and can represent thousands of extra dollars over the course of a year for workers who regularly log long hours.

How Overtime Affects Annual Income

Even a few hours of regular overtime each week can dramatically increase your annual earnings. An employee earning $25 per hour who works 45 hours every week earns $1,187.50 per week instead of $1,000 — an increase of nearly $10,000 per year. The projections section of this calculator shows you exactly what your weekly overtime schedule would yield on a monthly and annual basis, making it easier to plan budgets, savings goals, and tax estimates.