How to Calculate Overtime Pay: Time and a Half Explained with Examples

The Short Answer

This guide explains how to calculate overtime step by step. In the United States, federal law (the Fair Labor Standards Act, or FLSA) requires employers to pay non-exempt employees at least 1.5 times their regular rate of pay — "time and a half" — for every hour worked beyond 40 in a workweek. The formula is simple:

Overtime pay = overtime hours × (regular hourly rate × 1.5)
Total weekly pay = (40 × regular rate) + overtime pay

In the example above: 40 × $18 = $720 regular pay, plus 6 × $27 = $162 overtime, for $882 total. Below you will find the formula worked out step by step, the difference between weekly and daily overtime, how salaried workers and multiple pay rates change the math, double time rules, and the mistakes that cost workers money.

The Overtime Formula, Step by Step

Step 1 — Confirm you are eligible. Overtime rules apply to "non-exempt" employees — generally hourly workers and salaried workers below the FLSA salary threshold whose jobs are not exempt executive, administrative, or professional roles. Exempt employees are not entitled to overtime pay.

Step 2 — Find your regular rate of pay. This is your normal hourly wage. (If you earn different rates in the same week, see the multiple-rates section below.)

Step 3 — Multiply by 1.5 for the overtime rate. $18 × 1.5 = $27/hour.

Step 4 — Count overtime hours. Under federal law, only hours over 40 in the workweek count — not over 8 in a day.

Step 5 — Multiply and add. Overtime hours × overtime rate, added to 40 × regular rate.

Worked Example: $18/hr, 46-Hour Week

• Regular pay: 40 × $18.00 = $720.00
• Overtime rate: $18.00 × 1.5 = $27.00/hour
• Overtime pay: 6 × $27.00 = $162.00
• Total: $720.00 + $162.00 = $882.00

Another: $25/hour, 52-hour week. Regular: 40 × $25 = $1,000. Overtime rate: $25 × 1.5 = $37.50. Overtime: 12 × $37.50 = $450. Total: $1,450.

Weekly vs Daily Overtime

Federal law counts overtime weekly (hours beyond 40), but several states add daily overtime rules: California — 1.5× after 8 hours in a day, double time (2×) after 12 hours in a day; Alaska — 1.5× after 8 hours in a day; Colorado — 1.5× after 12 hours in a day (or 12 consecutive hours).

Example (California): $20/hour, one 10-hour day. First 8 hours: 8 × $20 = $160. Hours 9–10: 2 × $30 = $60. That day's pay: $220 — even though the worker is nowhere near 40 hours for the week. Always check your state's labor department rules.

Salaried (Non-Exempt) Workers

Salaried does not automatically mean exempt. If you are non-exempt and paid a salary, your regular rate is the salary divided by the hours it covers — normally 40. Example: $800/week salary, 46 hours worked. Regular rate = $800 ÷ 40 = $20/hour. Overtime premium = 0.5 × $20 × 6 = $60. Total = $800 + $60 = $860. Why only the 0.5 premium? Because the $800 salary already pays the straight-time portion for all 46 hours; overtime law only requires the extra half on top for the 6 overtime hours.

Multiple Pay Rates in One Week

If you work at two different rates, the regular rate is the weighted average: total straight-time earnings divided by total hours worked. Example: 20 hours at $15/hour + 25 hours at $18/hour = $300 + $450 = $750 over 45 hours. Regular rate = $750 ÷ 45 = $16.67/hour. Overtime premium = 0.5 × $16.67 × 5 = $41.67. Total pay = $750 + $41.67 = $791.67.

Double Time

In California, hours beyond 12 in a single workday — and hours beyond 8 on the seventh consecutive workday in a week — must be paid at double the regular rate. Example: $20/hour, one 14-hour day in California. First 8 hours: 8 × $20 = $160. Hours 9–12: 4 × $30 = $120. Hours 13–14: 2 × $40 = $80. Total: $360.

Common Mistakes to Avoid

• Counting daily hours instead of weekly. Under federal law, a 10-hour day alone creates no overtime — only the 41st hour of the week does (unless your state has daily rules).
• Using the wrong regular rate. Bonuses, shift differentials, and commissions can raise the regular rate — overtime is 1.5× the regular rate, not just the base wage.
• Assuming salary means no overtime. Non-exempt salaried workers are entitled to overtime; only genuinely exempt roles are not.
• Forgetting state law. State daily-overtime rules can be stricter than federal law, and the stricter rule wins.
• Rounding hours down. Employers must count all hours actually worked.

Quick Reference

• Standard overtime: OT hours × (rate × 1.5) → 6 × ($18 × 1.5) = $162
• Total weekly pay: (40 × rate) + overtime pay → $720 + $162 = $882
• Overtime rate: regular rate × 1.5 → $18 × 1.5 = $27/hr
• Salaried non-exempt: salary + (0.5 × (salary ÷ 40) × OT hrs) → $800 + $60 = $860
• Multiple rates: (total earnings ÷ total hrs) = regular rate → $750 ÷ 45 = $16.67
• Double time (CA): hours over 12/day × (rate × 2) → 2 × $40 = $80

Key Takeaways

• Overtime = overtime hours × (regular rate × 1.5) — federal law triggers at 40 hours per week.
• Daily overtime (California, Alaska, Colorado) and double time can apply on top of the weekly rule.
• Salaried workers may still be entitled to overtime if they are non-exempt.
• With multiple pay rates, use the weighted-average regular rate.
• State law beats federal law whenever it is more generous to the worker.