How to Calculate Overtime Pay (Time and a Half)

To calculate overtime pay, multiply the regular rate of pay by 1.5, then multiply that figure by the number of overtime hours worked. The arithmetic is straightforward. The part that most often goes wrong is deciding which hours count as overtime and which rate the multiplier should apply to.

The Ziannah Overtime Pay Calculator handles the arithmetic. This guide explains the formula, walks through examples, and shows why the regular rate is frequently higher than the base hourly wage.

The overtime pay formula

Overtime pay = regular rate of pay x 1.5 x overtime hours.

Total gross pay = (regular rate x regular hours) + (regular rate x 1.5 x overtime hours).

Example: an employee earns $20 per hour and works 46 hours in one workweek. The first 40 hours are regular time, paying $800. The remaining 6 hours are overtime at $30 per hour, paying $180. Total gross pay is $980 before taxes and deductions.

Which hours count as overtime?

Under the federal Fair Labor Standards Act, covered non-exempt employees must receive overtime pay of at least one and one-half times the regular rate for hours worked beyond 40 in a single workweek.

A workweek is a fixed, regularly recurring period of 168 hours, or seven consecutive 24-hour periods. It does not have to match the calendar week, but it should not be changed to avoid paying overtime. Each workweek stands on its own, so hours are not averaged across two weeks of a biweekly pay period.

The FLSA does not require overtime simply for working more than eight hours in a day, or for work on weekends or holidays. Some states set stricter rules, including daily overtime thresholds, so confirm the requirements that apply where the work is performed.

The regular rate is not always the base wage

Overtime is calculated on the regular rate, which is an hourly figure derived from total pay for employment in the workweek. It is broader than the posted hourly wage.

• Nondiscretionary bonuses, such as production or attendance bonuses, generally must be included.
• Shift differentials and most commissions generally must be included.
• Discretionary bonuses and true gifts are generally excluded.
• Reimbursed business expenses are generally excluded.

Example: an employee is paid $20 per hour and also earns a $100 nondiscretionary production bonus in a 45-hour week. Total straight-time pay is (45 x $20) + $100 = $1,000. The regular rate is $1,000 / 45 = $22.22 per hour, which is higher than the $20 base wage. Overtime is then calculated from $22.22, not from $20.

Calculate overtime step by step

• Confirm the employee is non-exempt and therefore eligible for overtime.
• Total the hours actually worked in the single, fixed workweek.
• Split the total into regular hours and hours above the overtime threshold.
• Determine the regular rate, including any pay that must be added to it.
• Multiply the regular rate by 1.5, then by the overtime hours.
• Add regular pay and overtime pay for total gross pay.

Double time and other multipliers

Double time, or a 2.0 multiplier, is not a general federal requirement. It may arise from state law, a collective bargaining agreement, or an employer policy. If a different multiplier applies, substitute it for 1.5 in the same formula.

Common overtime mistakes

• Averaging hours across two workweeks inside one biweekly pay period.
• Applying the 1.5 multiplier to the base wage when a bonus should have raised the regular rate.
• Counting paid holiday or vacation hours as hours worked toward the 40-hour threshold.
• Treating an employee as exempt based on a job title rather than actual duties and salary basis.
• Ignoring approved work performed off the clock, which still generally counts as hours worked.

Estimate overtime for a pay period

Use the Overtime Pay Calculator to split regular and overtime hours and estimate gross earnings. Use the Time Card Calculator when you need to build the week from daily start and end times first.

These calculators perform arithmetic. They do not determine exempt status, resolve which payments belong in the regular rate, or apply state-specific rules. Confirm those questions with your payroll team or a qualified advisor.