Overtime Pay Calculator
Calculate overtime pay, effective hourly rates, and overtime premiums. Perfect for employees, managers, and anyone who needs to understand overtime compensation.
Overtime Pay Calculator
Hours worked before overtime applies
Common: 1.5x (time and a half), 2x (double time)
About Overtime Pay
Overtime Threshold: The number of hours you must work before overtime pay applies. In the US, this is typically 40 hours per week, but can vary by state and employer.
Overtime Multiplier: The rate at which overtime hours are paid. Common rates include:
- 1.5x (Time and a Half): Most common for regular overtime
- 2x (Double Time): Often applies to holidays, Sundays, or extended overtime
- 1.25x: Some employers use this for certain overtime situations
Effective Hourly Rate: Your average hourly rate including overtime, which shows the true value of working additional hours.
Understanding Overtime Pay
Overtime pay is additional compensation for hours worked beyond your regular schedule. In most cases, overtime is calculated at a higher rate than your standard hourly wage, typically 1.5 times (time and a half) or 2 times (double time) your regular rate.
Understanding how overtime affects your total compensation helps you make informed decisions about working additional hours and negotiating fair pay rates.
Our calculator helps you see the true value of overtime work by showing your effective hourly rate when overtime is included.
Key Overtime Concepts
Overtime Threshold
The number of hours you must work before overtime pay applies. Typically 40 hours per week in the US.
Overtime Multiplier
The rate at which overtime hours are paid. Common rates include 1.5x (time and a half) and 2x (double time).
Effective Hourly Rate
Your average hourly rate including overtime, showing the true value of working additional hours.
Common Overtime Scenarios
Standard Overtime
Working more than 40 hours per week at 1.5x your regular rate. This is the most common overtime scenario for hourly employees.
Holiday Overtime
Working on holidays often pays at 2x (double time) your regular rate. This can significantly increase your effective hourly rate.
Extended Overtime
Some employers offer higher rates for extended overtime periods, such as working more than 12 hours in a day or 60 hours in a week.
Tips for Maximizing Overtime Benefits
For Employees
- • Understand your employer's overtime policies
- • Track your hours accurately
- • Know your state's overtime laws
- • Consider the value of overtime vs. work-life balance
- • Negotiate overtime rates when possible
For Employers
- • Ensure compliance with overtime laws
- • Set clear overtime policies
- • Consider the cost-benefit of overtime vs. hiring
- • Monitor overtime patterns for efficiency
- • Offer flexible scheduling to reduce overtime needs
Overtime Laws & Regulations
Fair Labor Standards Act (FLSA): Federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards. Most employees are covered by FLSA.
State Laws: Many states have additional overtime protections that exceed federal requirements. Check your state's labor department for specific regulations.
Exempt vs. Non-Exempt: Exempt employees (typically salaried professionals) are not entitled to overtime pay, while non-exempt employees (typically hourly workers) are.
Calculating Overtime: Overtime is typically calculated on a weekly basis, not daily, unless state law specifies otherwise.