Overtime Pay Calculator

Overtime Pay Calculator

Calculate overtime pay with standard and double time rates

Usually 1.5x (time and a half)

Usually 2.0x (double time)

Overtime Pay Calculator: Complete Payroll Guide

Overtime pay compensates employees for working more than standard hours, typically calculated at 1.5 times the regular hourly rate (time and a half).Understanding overtime calculations is essential for both employers and employees to ensure fair compensation and legal compliance with labor laws.

Quick Answer

To calculate overtime pay: Multiply your hourly rate by 1.5 for time-and-a-half overtime. For example, if you earn $20/hour and work 8 hours of overtime, your overtime pay is $20 × 1.5 × 8 = $240. Add this to your regular pay for total compensation.

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Legal Framework and Standards

40 Hours Standard Week

Federal standard for overtime eligibility under Fair Labor Standards Act (FLSA)

Key Overtime Rules:

Time and a Half (1.5x)

Most common overtime rate. Applies to hours worked over 40 in a workweek for non-exempt employees. Required by federal law for most hourly workers.

Double Time (2.0x)

Applied for excessive overtime hours, holidays, or specific industry requirements. Not federally mandated but may be required by state law or union contracts.

Exemptions

Salaried employees earning over $35,568 annually in executive, administrative, or professional roles may be exempt from overtime pay requirements.

Industry Applications

Healthcare & Emergency Services

Nursing Shifts

12-hour shifts with overtime for hours over 8 or 40 per week

Emergency Response

First responders with mandatory overtime and double time for holidays

Manufacturing & Construction

Production Workers

Assembly line workers with scheduled overtime for peak production

Construction Projects

Project-based overtime with potential double time for weekends

Example Calculations

Example 1: Standard Overtime Week

Employee earning $25/hour works 48 hours in one week

Regular hours: 40 × $25 = $1,000
Overtime hours: 8 × ($25 × 1.5) = 8 × $37.50 = $300
Total weekly pay: $1,000 + $300 = $1,300
Average hourly rate: $1,300 ÷ 48 = $27.08/hour

Answer: Total pay = $1,300 for 48 hours

Example 2: Double Time Scenario

Nurse earning $30/hour: 36 regular hours, 8 overtime hours, 4 double time hours

Regular: 36 × $30 = $1,080
Overtime: 8 × $45 = $360
Double time: 4 × $60 = $240
Total: $1,080 + $360 + $240 = $1,680

Answer: Total pay = $1,680 for 48 hours

Pay Period Considerations

Weekly Pay

• Overtime calculated per 7-day period

• Most straightforward for FLSA compliance

• Common in hourly wage industries

• 52 pay periods per year

Bi-weekly Pay

• Two-week pay periods

• Overtime calculated per workweek

• Popular for administrative ease

• 26 pay periods per year

Monthly Pay

• Monthly payroll processing

• Complex overtime tracking needed

• Less common for hourly workers

• 12 pay periods per year

Frequently Asked Questions

Who is eligible for overtime pay?

Non-exempt employees covered by FLSA are eligible for overtime. Generally includes hourly workers and salaried employees earning less than $35,568 annually. Exempt employees include executives, administrators, professionals, and some specialized roles.

Is overtime calculated daily or weekly?

Under federal law, overtime is calculated based on hours worked over 40 in a workweek, not daily. However, some states have daily overtime rules (like California's 8-hour rule). Check your state's specific requirements.

Can employers require overtime work?

Yes, employers can generally require overtime work as long as they pay the proper overtime rate. However, union contracts, state laws, or employment agreements may limit mandatory overtime. Employees cannot waive their right to overtime pay.

What about comp time instead of overtime pay?

Private employers cannot substitute compensatory time off for overtime pay. Public sector employees may receive comp time at 1.5 hours off for each overtime hour worked, subject to specific rules and limitations.

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