How Is Overtime Calculated?

The federal formula is simple: **1.5x your Regular Rate** for hours over 40. But nuances like bonuses and state laws can complicate the math.

The Basic Formula

Under the Fair Labor Standards Act (FLSA), overtime pay is calculated as:

(Regular Hours × Hourly Rate) + (Overtime Hours × Hourly Rate × 1.5)

Example Calculation

Jane earns **$20/hour**. She works **45 hours** in a week.

  • Regular Pay: 40 hours × $20 = $800
  • Overtime Rate: $20 x 1.5 = $30/hour
  • Overtime Pay: 5 hours x $30 = $150
  • Total Pay: $800 + $150 = **$950**

Use the Calculator

You can verify this math using our interactive tool below:

Total Weekly Gross Pay
$950.00

Includes 40h regular and 5h overtime.

Overtime Pay$150.00
Bonus Premium+16%

Earnings Transparency

Precision Engine v1.0
Regular Earnings40 Hours Max @ Standard Rate
$800.00
Overtime Premium (1.5x)5 Hours @ $30.00
$150.00
Total Weekly Gross$950.00
Determination Engine

FLSA vs State Jurisdictions.

We use the 40-hour federal threshold as the baseline, with support for California's complex multi-tiered overtime rules.

Time-and-a-Half

Standard for federal law. Any hours exceeding 40 in a single workweek are paid at 150% the regular rate.

Double Time Logic

Enabled in CA mode. Triggered by working over 12 hours in a single day or over 8 hours on a 7th consecutive day.

Advanced: Blended Rates & Bonuses

If you work two different jobs at the same company (e.g., Waiter at $15/hr and Host at $20/hr), your overtime rate is based on the **weighted average** (blended rate) of all earnings, not just the rate of the job you were doing when you crossed 40 hours.

Similarly, non-discretionary bonuses (like weekly performance commissions) must be added to the total weekly pay to determine the "Regular Rate," often resulting in a retroactive overtime adjustment check.

Common Questions

Does lunch break count as hours worked?
No. Unpaid meal breaks (usually 30+ minutes where you are fully relieved of duties) do not count toward the 40-hour threshold.
Is overtime calculated daily or weekly?
Federally, it is **Weekly** (>40 hours). In California, Alaska, and Nevada, daily overtime (>8 hours) also applies.