How overtime pay is calculated
The federal rule (FLSA)
The Fair Labor Standards Act requires covered employers to pay at least 1.5× the regular rate for every hour over 40 in a workweek (29 U.S.C. §207). The key points:
- The week is the unit — not the day. Working 12 hours on Monday and 6 the rest of the week produces no overtime: 42 hours total is only 2 OT hours. Only a handful of states add daily rules on top.
- The regular rate is not always the base rate. Shift differentials, non-discretionary bonuses and commissions generally must be folded into the regular rate before the 1.5× is applied — see the blended-rate method below.
- Paid leave does not count as hours worked. Vacation, holidays and sick days inflate the paycheck but not the 40-hour OT trigger.
Worked example — the classic 45-hour week
A warehouse worker at $20/hour works 9 hours Monday through Friday: 45 hours total. Pay: 40 × $20 = $800 regular, plus 5 × $30 = $150 overtime. Total $950. The same worker on eight-hour days earns $800 — the five extra hours earned $150, effectively a 37.5% raise on those hours, not the 50% the multiplier suggests, because the multiplier applies only to the excess hours.
The California difference (Labor Code §510)
California stacks daily overtime on top of weekly overtime, which is why the calculator has a separate mode:
- Over 8 hours in a day — 1.5× (even if the week totals under 40).
- Over 12 hours in a day — 2× (double time).
- Seventh consecutive workday — 1.5× for the first 8 hours, 2× for hours 8–12, 3× beyond 12.
Worked example: one 14-hour Tuesday at $20/hour pays 8 × $20 = $160 regular, 4 × $30 = $120 time-and-a-half, and 2 × $40 = $80 double time — $360 for the day, of which half is premium pay.
Two rates in one week: the blended rate
If an employee works part of the week at $18 and part at $24 (say, a training shift premium), the FLSA does not let you just apply 1.5× to whichever rate the overtime hours fell on. Instead the weighted average regular rate applies (29 CFR 778.115): total pay ÷ total hours. Example: 30 h at $18 plus 15 h at $24 = $900 ÷ 45 = a $20 blended rate; the week pays 40 × $20 + 5 × $30 = $950. The overtime premium is computed on the blend, not either raw rate.
Checking your own weekly hours first? The time card calculator totals clock-in/clock-out pairs and flags the overtime hours — then bring the totals here to price them. Converting the weekly figure to annual terms? Use the hourly to salary calculator.
Which states add daily overtime rules?
The FLSA sets the floor; a few states go further and require overtime per day, not just per week:
| State | Daily rule | On top of the federal 40-hour rule? |
|---|
| California | 1.5× after 8 h/day; 2× after 12 h/day; 7th consecutive day premiums | Yes — whichever produces more pay applies |
| Colorado | 1.5× after 12 consecutive hours in a day | Yes |
| Nevada | 1.5× after 8 h/day (for employees earning under 1.5× minimum wage); 2× over 12 h/day | Yes |
| Alaska | 1.5× after 8 h/day | Yes |
| Oregon | Daily overtime in manufacturing only (1.5× after 10 h/day) | Industry-specific |
Everywhere else, the federal weekly rule is the whole story: only the week's total matters. If you work in one of the states above, switch the calculator to California-style daily mode and adjust the thresholds to your state's rules before pricing a pay period.
FAQ
How is overtime calculated?
Under federal law: hours worked over 40 in one workweek × 1.5 × your regular hourly rate. Enter your daily hours above and the calculator does the split automatically.
Is overtime 1.5× or 2×?
Federal overtime is 1.5× with no legal double-time requirement. Double time appears in California (over 12 hours/day and 7th-day rules), in some employment contracts, and on holidays where company policy — not law — pays it.
Do weekends automatically pay overtime?
No. Saturday and Sunday work is overtime only if the week's total passes 40 hours (or, in California, if the day's total passes 8). A premium for weekend shifts is a company policy, not a federal requirement.
Does overtime count toward my salary conversion?
For comparison purposes, yes — but salaried-exempt employees do not earn overtime at all. Check whether the exemption tests apply to your role before assuming the premium applies to you.
What about tipped employees?
The regular rate for a tipped employee starts from the cash wage plus the tip credit; the overtime premium is 1.5× the full minimum wage minus the tip credit actually taken. The maths is trickier than this calculator's single-rate mode — see DOL Fact Sheet #15.
How far back can I claim unpaid overtime?
The FLSA statute of limitations is two years, or three for willful violations. State laws (for example, California's) can extend further. Keep your own records — the timesheet calculator exports a CSV you can archive.
Is the 40-hour threshold per week or per pay period?
Per workweek — a fixed, regularly recurring 168-hour period (168 = 7 × 24). A two-week pay period is two workweeks, each with its own 40-hour threshold.
Does paid holiday or vacation time trigger overtime?
No. Only hours actually worked count toward the 40. A week with three paid holidays and 40 worked hours generates no overtime.
Sources and standards
Rates, multipliers and all example figures on this page were last verified on September 19, 2026.