Overtime pay calculator
Federal FLSA default is 1.5× regular rate for hours over 40 per week. Adjustable multiplier for state-specific rules.
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How federal FLSA overtime works
Under the federal Fair Labor Standards Act, non-exempt employees earn 1.5× their regular rate for every hour worked over 40 in a single workweek. The regular rate isn't just the listed hourly wage — it's the average rate for the week, including most non-discretionary additions (shift differentials, attendance bonuses, on-call pay) prorated across hours worked. Discretionary bonuses and gifts are excluded.
State rules that go beyond federal
Several states require daily overtime in addition to weekly: California, Alaska, Nevada, Colorado, Kentucky, and a few others. California, for example, requires 1.5× over 8 hours per day AND 2× over 12 hours per day, on top of the federal 40-per-week rule. When state and federal rules differ, the employee gets whichever calculation produces the higher pay.
Some states also have stricter exemption tests. California's "white-collar" salary threshold is higher than the federal $35,568 minimum, so a worker who'd be exempt federally might still earn overtime in California.
The "regular rate" trap
The most common payroll mistake is computing overtime as 1.5× the base hourly only, forgetting to include shift differentials or production bonuses in the regular rate. The DOL's formula: (total non-OT compensation) ÷ (total hours worked). If you paid a $50 production bonus on top of a $20/hour base for 45 hours, the regular rate is ($20 × 45 + $50) ÷ 45 = $21.11/hour, and the OT rate is 1.5 × $21.11 = $31.67 — not 1.5 × $20.
FAQ
How is overtime pay calculated?
1.5× the regular hourly rate for every hour worked over 40 in a single workweek. The "regular rate" includes hourly wages plus most non-discretionary additions like shift differentials and attendance bonuses prorated across the period.
What states have daily overtime?
California, Alaska, Nevada, Colorado, Kentucky, and a handful of others. California's rule is the strictest — 1.5× over 8 hours per day, 2× over 12 hours per day, plus the federal 40-per-week rule. Employees get whichever calculation gives them the most pay.
Do salaried employees get overtime?
Salaried-exempt employees don't. Salaried-nonexempt employees do — their overtime rate is calculated by dividing salary by hours worked to get the regular rate, then applying 1.5× to hours over 40.
Is overtime taxed differently?
No — overtime earnings are taxed the same as regular wages. The myth that "overtime gets taxed at a higher rate" comes from the way withholding tables can push more of the OT paycheck into a higher temporary withholding bracket. The actual annual tax is based on total annual income, not the per-paycheck rate.