6 November 2026 · 8 min read
How to Calculate Overtime Pay: Time-and-a-Half Formula with Worked Examples
Overtime pay looks confusing until you see the formula once. Under the federal Fair Labor Standards Act (FLSA), most hourly workers must be paid at least time and a half — 1.5 times their regular rate — for every hour over 40 in a single workweek. This guide works through the formula step by step, with real numbers you can check, and covers the cases that trip people up: salaried workers, bonuses, double time, and the states that pay overtime by the day, not the week.
The formula
Overtime rate = regular hourly rate × 1.5
Overtime pay = overtime hours × overtime rate
Total weekly pay = (regular hours × regular rate) + overtime pay
The “regular rate” is the key term: it is not always your base wage. Under the FLSA it includes most extra pay for the week — shift differentials, commissions and non-discretionary bonuses — divided by the total hours worked. We work an example of that below. The rule itself comes from the U.S. Department of Labor's Fact Sheet #23, which also states that hours may not be averaged over two or more weeks: each workweek stands alone.
Step by step
- Count total hours in the workweek. One workweek only — never average two weeks together.
- Subtract 40. Hours up to 40 are regular hours; anything above 40 is overtime.
- Find your regular rate. For a plain hourly wage, that is your wage. With bonuses or differentials, divide total straight-time earnings by total hours (see the bonus example below).
- Multiply the regular rate by 1.5 to get your overtime rate, then multiply by your overtime hours.
- Add regular pay and overtime pay for the week's gross total.
Skip the hand math any time: our free overtime pay calculator runs the same formula, and its timecard mode applies the daily rules for California, Alaska, Nevada and Colorado.
Worked example 1: $20 an hour, 45 hours
The classic FLSA example, and the one the DOL uses in its own guidance:
- Regular pay: 40 hours × $20 = $800
- Overtime rate: $20 × 1.5 = $30 an hour
- Overtime pay: 5 hours × $30 = $150
- Total gross pay: $800 + $150 = $950
Of that $150 in overtime pay, $100 is straight time for the 5 hours and $50 is the 0.5× premium — the extra half-rate is the part that makes it “time and a half.”
Worked example 2: $25 an hour, 50 hours
- Regular pay: 40 hours × $25 = $1,000
- Overtime rate: $25 × 1.5 = $37.50 an hour
- Overtime pay: 10 hours × $37.50 = $375
- Total gross pay: $1,000 + $375 = $1,375
Time-and-a-half rates for common wages
| Regular hourly rate | Time-and-a-half rate | Pay for 5 overtime hours |
|---|---|---|
| $15.00 | $22.50 | $112.50 |
| $18.00 | $27.00 | $135.00 |
| $20.00 | $30.00 | $150.00 |
| $22.00 | $33.00 | $165.00 |
| $25.00 | $37.50 | $187.50 |
| $30.00 | $45.00 | $225.00 |
Salaried workers: find your hourly rate first
Salaried employees who are non-exempt under the FLSA still get overtime. Convert the salary to an hourly rate by dividing by the hours the salary is meant to cover — usually 40. Example: a $800 weekly salary, 48 hours worked:
- Hourly rate: $800 ÷ 40 = $20 an hour
- Overtime rate: $20 × 1.5 = $30 an hour
- Overtime pay: 8 hours × $30 = $240
- Total gross pay: $800 + $240 = $1,040
Whether a salaried worker is exempt depends on the salary level and duties tests, not on the job title. If you are paid a salary but do non-exempt work, the overtime rule still applies.
Bonuses change the regular rate
A non-discretionary bonus — one promised in advance, like a production bonus — counts toward the regular rate. Example: $600 in wages plus a $100 production bonus, 50 hours worked:
- Total straight-time earnings: $600 + $100 = $700
- Regular rate: $700 ÷ 50 hours = $14 an hour
- Overtime rate: $14 × 1.5 = $21 an hour
- Regular pay: 40 × $14 = $560; overtime pay: 10 × $21 = $210
- Total gross pay: $560 + $210 = $770
Check it the other way: straight time for all 50 hours at $14 is $700, plus the 0.5× premium on the 10 overtime hours (10 × $7 = $70) — $770 again. If your employer computed overtime on the $12 base wage alone, you would be underpaid.
What about double time?
Federal law does not require double time — the FLSA minimum is 1.5×. Double time comes from state law or your contract. The clearest example is California: 2× the regular rate for hours over 12 in a workday, and for hours over 8 on the seventh consecutive day of work in a workweek. One 14-hour day in California at $20 an hour pays 8 × $20 + 4 × $30 + 2 × $40 = $360 — even though the week totals only 14 hours.
Some states pay overtime by the day
The weekly 40-hour rule is the federal floor, but four states add daily triggers, so a long single day earns premium pay even in a short week:
- California: 1.5× after 8 hours in a day (2× after 12), plus seventh-day rules.
- Alaska: 1.5× after 8 hours in a day or 40 in a week.
- Nevada: 1.5× after 8 hours in a 24-hour period for workers earning under $18.00 an hour.
- Colorado: 1.5× after 12 hours in a day or 12 consecutive hours.
Try them in the calculator's timecard mode — enter hours day by day and pick your state. Full citations are on our About page.
How to check your pay stub
- Confirm the workweek: overtime is weekly, so a two-week pay period holds two separate 40-hour counts.
- Check the regular rate: does it include shift differentials, commissions or promised bonuses?
- Multiply: overtime hours × regular rate × 1.5 should match the overtime line.
- If you worked a long day in California, Alaska, Nevada or Colorado, check the daily rule too.
- If the numbers do not match, ask payroll for the calculation in writing — and the DOL's helpline (1-866-487-9243) can answer FLSA questions for free.
Frequently asked questions
Is overtime calculated weekly or daily?
Federally, weekly: hours over 40 in one workweek. In California, Alaska, Nevada and Colorado, daily rules add premium pay for long single days on top of the weekly rule.
Can my employer average my hours over two weeks?
No. The FLSA applies workweek by workweek, and averaging hours across two or more weeks is not permitted.
Does double time exist under federal law?
No — the federal minimum is time and a half. Double time comes from state law (California is the main example) or from a contract or union agreement.
Do bonuses count toward overtime?
Non-discretionary bonuses — promised in advance, like production bonuses — must be included in the regular rate. Purely discretionary bonuses, like an unexpected holiday gift, do not.
Sources
- U.S. Department of Labor, Wage and Hour Division — Fact Sheet #23: Overtime Pay Requirements of the FLSAOvertime at not less than time and one-half the regular rate for hours over 40 in a workweek; no averaging across workweeks.
- California Department of Industrial Relations (DIR) — Overtime FAQ1.5x over 8 up to 12 hours in a workday and for the first 8 hours on the 7th consecutive day; 2x over 12 hours in a workday and over 8 hours on the 7th consecutive day; 1.5x over 40 in a workweek.
- Alaska Department of Labor and Workforce Development — Wage and Hour FAQ1.5x for hours over 8 in a single day and/or over 40 in a single week; applies to employers with four or more employees.
- Nevada Office of the Labor Commissioner — Daily Overtime Bulletin (NRS 608.018)Employees paid less than 1.5 times the state minimum wage ($18.00/hr at the $12.00 minimum wage) get 1.5x after 8 hours in a 24-hour period and after 40 in a workweek; at or above that rate, weekly overtime only. A mutually agreed 4x10 schedule is an exception to the daily rule.
- Colorado Department of Labor and Employment — INFO #1: 2026 COMPS and PAY CALC Orders, Rule 41.5x for hours past 40 per week, 12 per day, or any 12 consecutive hours — whichever results in higher pay.
Rules checked 6 November 2026. This article is general information, not legal advice. Exemptions, alternative workweek schedules and union contracts can change the result.
More guides in the overtime pay blog, or run your own numbers in the overtime pay calculator.