How overtime pay works
In the United States the Fair Labor Standards Act requires employers to pay non-exempt employees at least one and a half times their regular rate for every hour over 40 in a workweek. The workweek is any fixed and regularly recurring period of 168 hours the employer chooses; it does not have to match the calendar week and cannot be averaged across two weeks to avoid overtime. There is no federal daily overtime, no federal weekend or holiday premium, and no federal double time; all of those come from state law, union contracts, or employer policy.
The formula
Regular pay = regular hours × rate. Overtime pay = overtime hours × rate × multiplier. Total = the two added together. With 45 hours at $20 and a 1.5 multiplier: 40 × 20 = $800, 5 × 20 × 1.5 = $150, total $950. Another way to see the same number: 45 hours of straight time is $900, and the overtime premium (the extra half) on 5 hours is $50, which also gives $950. Payroll systems often present it the second way, which confuses people who expect to see $150 labelled as overtime.
What counts as the regular rate
The regular rate is not always the hourly figure on your offer letter. Under federal rules it must include non-discretionary bonuses, shift differentials, and commissions earned in the week, divided by the hours worked. A $50 attendance bonus in a 45-hour week raises the regular rate by about $1.11, and the overtime multiplier applies to that higher rate. This calculator uses whatever rate you enter, so add such amounts yourself if they apply.
Daily overtime and double time
California is the best-known daily-overtime state: 1.5x after 8 hours in a day, 2x after 12, and special rules for the seventh consecutive day. Alaska and Nevada also use an 8-hour daily trigger (Nevada's applies below a wage threshold), and Colorado uses 12 hours. This page treats the hours you enter as a single block against a single threshold, with an optional double-time threshold above it. For a full week with different hours each day, the time card calculator applies daily and weekly rules together without double counting.
Figures verified 2026-09-15. 40-hour threshold and 1.5x minimum: 29 U.S.C. § 207(a). Regular-rate inclusions: 29 C.F.R. Part 778. Check your state labor department for daily-overtime and double-time rules, which change.
Common questions the numbers answer
- "Is it worth picking up a 5-hour shift?" Compare total pay with and without the extra hours. At $20, 5 OT hours add $150, not $100.
- "Why is my effective rate lower than my OT rate?" Because it blends regular and overtime hours. 45 hours for $950 is $21.11 per hour overall even though the last 5 hours paid $30.
- "What if my employer rounds to 40?" Rounding a 40.5-hour week down to 40 is not one of the permitted rounding methods. See the 7-minute rule for what is allowed.