How overtime is calculated
Overtime pay = hourly rate × 1.5 × overtime hours
Weekly pay = hourly rate × regular hours + overtime pay
Under the federal Fair Labor Standards Act, non-exempt employees must get at least one and a half times their regular rate for hours over 40 in a workweek. Some states, and some employers, pay overtime after 8 hours in a day or pay double time in certain cases.
Worked example
You earn $22.00 an hour and work 48 hours this week. The first 40 pay $880.00. The other 8 are paid at $33.00 an hour, adding $264.00, for $1,144.00 before tax.
Things to know
- Not everyone qualifies. Many salaried managers and professionals are exempt from overtime rules. Your pay stub or employer can confirm your status.
- Overtime is taxed like other pay, though a new federal deduction lets eligible workers deduct part of qualified overtime pay from income tax.
- Check your take-home. The paycheck calculator shows what's left after tax, and the bonus tax calculator does the same for a bonus.
Questions people ask
What is time and a half?
Your regular hourly rate times 1.5. At $20 an hour, time and a half is $30 an hour.
How do I turn my hourly rate into a salary?
Use the salary converter, which handles hours, unpaid time off and taxes.
Sources
- U.S. Department of Labor: overtime pay under the Fair Labor Standards Act
- U.S. Department of Labor: Fact Sheet #23, overtime pay requirements of the FLSA
- IRS: new and enhanced deductions for individuals (deduction for qualified overtime pay)
Reviewed September 26, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.