Assumptions
- Regular rate = (hourly × hours + nondiscretionary bonus) ÷ hours worked. Overtime hours = max(hours − 40, daily OT entered). Premium = 0.5 × regular rate per OT hour, 1.0 × for double-time hours.
- Single workweek, single hourly rate. Salaried non-exempt (fluctuating workweek), piece-rate and tipped credit rules are not modeled. Jurisdiction: United States (FLSA), optional state daily OT.
How it is calculated
- Straight-time pay = hours × hourly + bonus. Regular rate = straight-time pay ÷ hours.
- Overtime hours = hours over 40 (or state daily overtime, whichever is larger).
- Overtime premium = 0.5 × regular rate × overtime hours; double-time premium = 1.0 × regular rate × double-time hours.
- Total = straight-time pay + premiums.
Examples
| Week | Regular rate | OT hours | Total pay |
|---|---|---|---|
| $20/h, 50 hours | $20.00 | 10 | $1,100.00 |
| $20/h, 50 hours + $100 bonus | $22.00 | 10 | $1,210.00 |
| $18/h, 45 hours | $18.00 | 5 | $855.00 |
| $30/h, 40 hours, CA: 6 daily OT h incl. 2 double | $30.00 | 6 | $1,320.00 |
Common mistakes
- Comp time instead of pay is allowed only for public-sector employers.
- Averaging two weeks (e.g., 30 + 50 hours) is not allowed; each workweek stands alone, except approved 14-day periods for hospitals.
- Unpaid back overtime can be recovered for two years (three if willful) plus an equal amount in liquidated damages.
FAQ
How is overtime calculated under the FLSA?
Non-exempt employees get at least 1.5 times their regular rate for hours over 40 in a fixed 7-day workweek (29 U.S.C. 207). $20/hour × 50 hours: 40 × $20 + 10 × $30 = $1,100. Equivalently, all 50 hours at $20 ($1,000) plus a half-time premium of $10 × 10 hours ($100).
Why does a bonus change my overtime rate?
The regular rate is total remuneration ÷ total hours, and nondiscretionary bonuses count (29 CFR 778.208–778.209). A $100 attendance bonus in a 50-hour week raises the regular rate from $20 to $22, so the overtime premium becomes $11 × 10 = $110 instead of $100. Discretionary bonuses, gifts, expense reimbursements and paid time off are excluded.
Does working more than 8 hours in a day count?
Not under federal law, which looks only at the 40-hour week. California, Alaska, Nevada and Colorado have daily overtime (California: over 8 hours a day at 1.5×, over 12 at 2×, and the 7th consecutive day). Enter daily overtime hours to model those states; the calculator does not pyramid daily and weekly overtime.
Who is exempt from overtime?
Salaried executive, administrative and professional employees earning at least the federal threshold ($684 a week, $35,568 a year, after the 2024 increase was vacated), outside sales, certain computer employees, and specific industries. Hourly employees are almost always non-exempt. Several states set higher salary thresholds.