Overtime Calculator

How to Calculate Overtime Pay?

Under the Fair Labor Standards Act (FLSA), non-exempt employees earn 1.5 times their regular hourly rate for hours worked beyond 40 in a workweek. Enter your hourly rate, regular hours, overtime hours, and the overtime multiplier in the calculator above. It shows regular pay, overtime pay, total gross pay, and the effective hourly rate across all hours worked. Understanding overtime math helps you evaluate whether extra hours are worth the effort after accounting for taxes and personal time.

Overtime Pay Calculation Examples

$25/hour regular rate with 10 overtime hours at 1.5x: regular pay = $25 x 40 = $1,000. Overtime rate = $37.50/hour. Overtime pay = $37.50 x 10 = $375. Total weekly gross: $1,375. Effective hourly rate across all 50 hours: $27.50. At $35/hour with 15 overtime hours: regular $1,400, overtime $787.50, total $2,187.50 for 55 hours. Effective rate: $39.77/hour. The effective rate matters for comparing the true hourly value of overtime versus other earning opportunities like freelance work or a second job that might pay a flat rate without the overtime premium.

Who Qualifies for Overtime Pay?

Non-exempt employees (paid hourly or salaried below the FLSA threshold) qualify for overtime. Exempt employees (salaried above the threshold meeting specific duties tests) do not. The 2024 FLSA salary threshold for exemption is $35,568/year ($684/week). Employees earning below this amount are automatically non-exempt regardless of job title or duties. Above this threshold, the exemption depends on the duties test: executive (managing employees), administrative (exercising independent judgment on significant matters), professional (requiring advanced knowledge), or computer professional. Many workers classified as "exempt" by employers do not actually meet the duties test and may be owed back overtime - misclassification is one of the most common FLSA violations.

State Overtime Rules That Exceed Federal Law

California requires overtime after 8 hours in a single day (not just 40 in a week) and double time after 12 hours in a day. Colorado requires daily overtime after 12 hours. A California worker at $20/hour working four 10-hour days (40 total hours): federal law requires zero overtime (40 hours in the week). California law requires 8 hours of overtime (2 hours x 4 days at $30/hour) = $240 in additional pay that week. Alaska, Nevada, and a few other states also have daily overtime thresholds. Always check both federal and state rules - the worker receives whichever law provides the greater benefit.

Double Time and Premium Pay Situations

Double time (2x regular rate) is required in California after 12 hours in a day and on the 7th consecutive day of work. Some union contracts and employer policies provide double time for holidays, weekends, or hours exceeding 60 per week, even where not legally mandated. At $30/hour: double time pays $60/hour. A 14-hour day in California: 8 regular hours ($240), 4 overtime hours at 1.5x ($180), and 2 double-time hours at 2x ($120). Total: $540 for 14 hours, an effective rate of $38.57/hour. The calculator supports custom overtime multipliers to model these premium pay situations.

Overtime and Tax: What You Actually Keep

Overtime income is taxed at your marginal rate, not a special rate. Common misconception: "overtime pushes you into a higher bracket and gets taxed away." Reality: only the portion above the bracket threshold faces the higher rate. A worker normally in the 12% federal bracket who earns enough overtime to cross into 22%: only the overtime dollars above the 22% threshold are taxed at 22%. The rest remains at 12%. Your effective tax rate on overtime is your marginal rate (federal + state + FICA). At 22% federal, 5% state, 7.65% FICA: approximately 34.65% of overtime goes to taxes. A $37.50 overtime hour nets roughly $24.50 after tax.

Annual Impact of Regular Overtime

Consistent overtime significantly boosts annual income. A $25/hour worker averaging 10 overtime hours weekly for 50 weeks: regular annual = $50,000. Overtime annual = $18,750. Total: $68,750 (37.5% increase). At 15 overtime hours: $78,125 (56% increase). This additional income represents $1,440-$2,170 extra per month before taxes. For many hourly workers, overtime is the primary path to higher earnings since hourly rate increases may be limited. However, sustained overtime exceeding 50-55 hours/week is associated with diminished health, productivity, and quality of life - the financial benefit has real personal costs that should be weighed honestly.

Comp Time vs Overtime Pay: Know Your Rights

Private-sector employers generally cannot offer compensatory time off (comp time) instead of overtime pay under FLSA. If you work 50 hours, you must be paid for 50 hours including the overtime premium - the employer cannot give you 10 hours off next week instead. Public-sector (government) employers may offer comp time at 1.5x: 10 overtime hours earn 15 hours of comp time. Some private employers offer "informal" comp time arrangements, but these may not satisfy FLSA requirements. If your employer substitutes comp time for overtime pay and you are a non-exempt private-sector employee, you may have a valid wage claim for the unpaid overtime premium.

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