To calculate overtime: find your regular rate of pay, count the hours over 40 in the workweek, multiply those hours by 1.5× the regular rate, and add that to your regular pay. Under the federal Fair Labor Standards Act (FLSA), that is the whole method — the details are just about getting the “regular rate” right.
Step 1 — Find your regular rate
For a single hourly wage, the regular rate is simply your hourly rate. It gets more involved when other pay is in play:
- Hourly only: regular rate = your hourly wage.
- With a non-discretionary bonus: add the bonus to the week’s straight-time pay, then divide by total hours.
- Multiple pay rates: use the weighted average — total straight-time pay ÷ total hours.
- Salary (non-exempt): weekly salary ÷ the hours it covers (usually 40).
The regular rate is the figure overtime is built on, and it must include shift differentials and most bonuses — not just the base wage.
Step 2 — Count overtime hours (per workweek)
Overtime hours are those worked beyond 40 in a single workweek. A workweek is a fixed, recurring 7-day period. Key rules:
- Only hours actually worked count — paid holidays, PTO and sick time do not.
- Each workweek stands alone; you can never average two weeks.
- Some states add a daily trigger (California: over 8 hours/day), which the overtime calculator applies when you pick the state.
Step 3 — Apply time and a half
Multiply overtime hours by 1.5× the regular rate, and add to regular pay:
| Hours | Rate | Pay | |
|---|---|---|---|
| Regular | 40 | $20.00 | $800.00 |
| Overtime | 6 | $30.00 | $180.00 |
| Total | 46 | $980.00 |
Worked examples for the tricky cases
Bonus: $20/hour, 45 hours, plus a $100 production bonus. Regular rate = ($900 + $100) ÷ 45 = $22.22. Overtime premium = 0.5 × $22.22 × 5 = $55.56. The bonus raised the overtime owed.
Two rates (blended): 30 hours at $20 + 20 hours at $15 = $900 straight time ÷ 50 hours = $18 regular rate. Overtime premium = 0.5 × $18 × 10 = $90; total $990. See the blended overtime calculator.
Salary: a $52,000 salary is $1,000/week ÷ 40 = $25/hour. A 45-hour week pays 40 × $25 + 5 × $37.50 = $1,187.50. See the salary overtime calculator.
Don’t forget the 2025–2028 tax break
If your overtime is FLSA-required, the premium “half” may qualify for the new No Tax on Overtime deduction — a federal income-tax deduction (with caps and an income phaseout), separate from how the pay itself is calculated.
Quick self-check
- Total your worked hours per workweek (the time card calculator does this).
- Confirm your regular rate includes bonuses and differentials.
- Apply 1.5× to hours over 40 (and any state daily overtime).
- Compare with your pay stub — a mismatch larger than rounding is worth raising.