Overtime Calculator
Calculate time-and-a-half overtime pay under federal FLSA rules. Hours over 40/week earn 1.5× your regular hourly rate.
FAQs
How is overtime calculated?
Under federal Fair Labor Standards Act (FLSA), non-exempt employees earn 1.5× their regular hourly rate for hours worked over 40 per week. Formula: OT pay = hours over 40 × hourly rate × 1.5. For $20/hour with 45 hours worked: regular pay = 40 × $20 = $800. OT pay = 5 × $20 × 1.5 = $150. Total = $950.
Is overtime taxed more?
No — this is a common myth. Overtime pay is taxed at your normal marginal rate, just like regular wages. The confusion comes from withholding: if a paycheck containing OT is significantly larger than usual, the payroll system may withhold MORE than necessary based on an extrapolation that you'll earn that amount every week. The excess is refunded when you file your tax return.
Who is eligible for overtime?
Non-exempt employees under FLSA. Generally hourly workers and some salaried workers earning below the threshold ($684/week or $35,568/year in 2024, set to increase). Exempt categories include: executive (managers with hire/fire authority), administrative (independent judgment), professional (law, medicine, engineering), outside sales, computer professionals (over $27.63/hour). Independent contractors are never eligible for FLSA overtime.
Do all states use 1.5× overtime?
Federal minimum is 1.5× over 40 hours/week. Many states have stricter rules: California requires 1.5× over 8 hours/day OR over 40 hours/week, plus 2× over 12 hours/day. Alaska, Nevada, and Colorado have daily OT thresholds. Some states require 7th consecutive day worked at 1.5× or 2×. Check your state's labor department for specifics.
Is overtime mandatory?
Federal law (FLSA) does NOT limit how many hours an employee can be required to work. An employer can require unlimited overtime as long as they pay 1.5× the regular rate. Refusing overtime is not protected — it can be grounds for discipline. Some union contracts limit mandatory OT; some state laws cap consecutive hours in safety-sensitive industries (transportation, healthcare).
What about salaried employees and overtime?
Salaried employees are exempt from OT only if they meet TWO tests: (1) Paid at least $684/week ($35,568/year) — the salary threshold; AND (2) Their job duties fall in an exempt category (executive, administrative, professional, etc.) — the duties test. Misclassification is common: employers sometimes call workers 'exempt' incorrectly to avoid OT. The DOL has reclaimed millions in back wages from misclassified workers.
How does overtime work for tipped employees?
Tipped employees (waiters, bartenders) earn OT based on the FULL minimum wage, not their reduced cash wage. If state minimum is $15 and tipped cash wage is $5.13, OT is calculated as 1.5 × $15 = $22.50, with the employer paying $22.50 - $5.13 - tips received = the OT cash portion. Complex — many states have stricter rules.