Worked extra hours this week? A free overtime pay calculator tells you exactly what those hours are worth — because under US federal law, most hourly workers must be paid time and a half (1.5× their regular rate) for every hour over 40 in a week.
This guide explains how overtime pay works, walks through a fully worked example ($20/hour with 10 overtime hours = $1,100 for the week), covers the federal rules you should know, and flags the mistakes that cost workers real money.
What is overtime pay?
Overtime pay is the premium rate employers must pay eligible (non-exempt) hourly workers for hours worked beyond 40 in a single workweek. The standard premium is 1.5 times the employee's regular hourly rate — often called "time and a half." Some states, union contracts, or company policies go further with double time (2×) for very long days or seventh consecutive workdays, but 1.5× is the federal floor.
Crucially, overtime is calculated per workweek, not per pay period. Working 50 hours one week and 30 the next does not average out to 40 and 40 — the 10 extra hours in the first week are overtime, period.
How overtime pay works, step by step
- Confirm you're non-exempt. The federal overtime rule covers most hourly workers. Salaried workers classified as "exempt" (generally certain executive, administrative, and professional roles above a salary threshold) are typically not entitled to overtime.
- Count hours in the workweek. A workweek is any fixed, recurring 7-day period your employer defines. Only hours actually worked count — paid holidays or sick days usually don't push you into overtime by themselves.
- Split regular vs overtime hours. The first 40 hours are paid at your regular rate; every hour beyond 40 is paid at 1.5×.
- Calculate the overtime rate: regular hourly rate × 1.5.
- Add them up: (regular hours × regular rate) + (overtime hours × overtime rate) = gross pay for the week.
- Double-check your pay stub. Run the numbers yourself with an overtime calculator — payroll errors happen more often than you'd think, and they rarely favor the employee.
Worked example: $20/hour with 10 overtime hours
- Regular pay: 40 hours × $20 = $800
- Overtime rate: $20 × 1.5 = $30/hour (time and a half)
- Overtime pay: 10 hours × $30 = $300
- Total gross for the week: $800 + $300 = $1,100
Those 10 extra hours — just 25% more time — produced $300 of the $1,100 total, or about 27% of the week's pay. That's the power of the 1.5× premium: overtime hours punch above their weight. If you want to see how overtime changes your annual picture, pair this with our salary calculator to convert the weekly total into yearly earnings.
What the law says (FLSA basics)
The federal Fair Labor Standards Act (FLSA) requires employers to pay non-exempt workers at least 1.5× their regular rate for all hours worked over 40 in a workweek. Key points workers often miss:
- The 40-hour threshold is weekly — there is no federal daily overtime requirement (some states add their own).
- Employers generally cannot offer comp time instead of overtime pay to private-sector hourly workers.
- "Regular rate" includes most extra payments like shift differentials and non-discretionary bonuses — it's not always just your base hourly wage.
- Some states set stricter rules (for example, daily overtime thresholds), and the stricter rule wins.
The formula, explained simply
- Overtime rate = regular hourly rate × 1.5
- Weekly gross = (40 × regular rate) + (overtime hours × regular rate × 1.5)
- Double time (where it applies) = regular rate × 2
That's genuinely all there is to it. The most common error is applying 1.5× to all hours instead of only the hours beyond 40 — a 50-hour week at $20/hour is $1,100, not $1,500. And if you earn tips on top of hourly pay, a tip calculator can help you total the full picture.
Common overtime mistakes
- Assuming salary = no overtime, always. Being paid a salary doesn't automatically make you exempt — exemption depends on your actual job duties and salary level. Misclassification is common.
- Letting hours "average out." Overtime is per workweek. An employer can't cancel week one's overtime with week two's shortfall.
- Not tracking your own hours. Keep your own log (a notes app is fine). If a dispute ever arises, your contemporaneous records are powerful.
- Working off the clock. Pre-shift prep, post-shift cleanup, and "quick" after-hours tasks all count as hours worked if your employer requires or allows them.
- Forgetting the regular rate isn't always the base rate. Shift differentials and certain bonuses raise your regular rate — and therefore your overtime rate too.