Calculate FLSA-compliant overtime earnings at 1.5× and 2× rates. See how overtime boosts your monthly and annual income.
Overtime is where workers either leave money on the table or, on the employer side, accidentally break the law. Under the federal Fair Labor Standards Act (FLSA), non-exempt employees earn 1.5× their regular rate for hours beyond 40 in a workweek, and about two dozen states add stronger daily or double-time rules. This guide walks through the formulas, eligibility, state variations, and the traps that cause both underpayment and math errors — so you can verify any paycheck with the calculator below.
The single most important number is 1.5. For an hourly worker, overtime pay equals overtime hours × (hourly rate × 1.5). A $20/hour employee working 48 hours earns 40 × $20 = $800 regular plus 8 × $30 = $240 overtime, for a $1,040 gross. Without overtime law that 48th hour would pay only $20; with it, $30 — a 50% premium that compounds across a year of long weeks.
Overtime law splits workers into exempt and non-exempt. Non-exempt staff are entitled to overtime; exempt staff generally are not. Exemption is set by salary level and duties, not job title. For 2026 the FLSA white-collar exemptions generally require about $35,568/year and specific duty tests. A salaried analyst or coordinator near that threshold who regularly works 45–50 hours may be owed overtime. Use the Overtime Pay Calculator to model both hourly and salaried non-exempt cases.
Salaried workers who are not exempt still get overtime, but you first convert the salary to an hourly "regular rate" by dividing weekly salary by contracted hours (usually 40). An employee salaried at $800/week who works 50 hours has a regular rate of $20; the 10 overtime hours pay $20 × 1.5 = $30 each, adding $300. Total gross = $1,100. If they work exactly 40, only the $800 salary applies — proving that being salaried does not remove overtime rights for non-exempt staff.
The federal 40-hour rule is a floor. Several states add daily overtime:
A week of 10-hour days in these states can generate far more overtime than the federal rule alone. Compare scenarios with the State-to-State Comparison Calculator.
For tipped workers, the regular rate used for overtime is based on the full cash wage plus the tip credit, not just the tipped sub-minimum. Because state rules vary, use the Net Pay Calculator and confirm the local tipped minimum with the state Department of Labor. Misclassifying tipped staff is a common source of underpayment.
The regular rate is not simply your hourly wage. Non-discretionary bonuses, shift differentials, and most contractual commissions must be added to total earnings and divided by total hours to find the true regular rate — the figure multiplied by 1.5. A worker earning $18/hour plus a $100 weekly bonus has a regular rate above $18, so overtime computes on the higher base. Employers who omit the bonus underpay systematically.
| Component | Amount |
|---|---|
| Regular 40 hrs @ $25 | $1,000 |
| 5 OT hrs @ $37.50 | $187.50 |
| Gross weekly | $1,187.50 |
Over 50 such weeks, overtime adds about $9,375 gross — real money that should appear on every stub. Verify it with the Overtime Pay Calculator, and read the Overtime Calculation Guide for underpayment remedies.
Enter your hourly or salaried rate, the hours worked, and your state if it has daily overtime. The tool applies 1.5× (and 2× where applicable) and shows gross and estimated take-home. Pair it with the Tax Guide because overtime is taxed at ordinary rates — there is no penalty rate despite the myth.
If overtime is missing, act early. The FLSA allows a two-year look-back (three for willful violations) and liquidated damages that can double recovery. Raise it internally first; many errors are honest mistakes. If unresolved, file with the US Department of Labor Wage and Hour Division or your state agency, and document hours with timesheets or clock-in records. State agencies often have longer windows — check your state wage guide.
Unlike private employers, public-sector (government) employers may offer compensatory ("comp") time instead of cash overtime, typically capped at 240 hours banked. Private employers generally cannot substitute comp time for the 1.5x cash owed under the FLSA. If you work for a city or state agency, check the local policy; if you work private-sector, expect cash. The Tax Guide notes overtime is ordinary income either way.
Required, job-related training and meetings usually count as working time and can push a week into overtime. If attendance is mandatory and the content is tied to your role, those hours belong on the timesheet. Many workers leave this pay unclaimed because no one told them it counts. Log it and compare against your stub with the Overtime Pay Calculator.
Non-discretionary bonuses — those promised in a contract or expected by practice — must be folded into the regular rate before the 1.5x multiplier. A worker earning $18/hour plus a $100 weekly productivity bonus has a regular rate above $18, so overtime computes on the higher base. Discretionary surprise bonuses are excluded. Employers who omit contractual bonuses underpay systematically.
If overtime is missing, state labor agencies often have longer look-back periods and higher penalties than federal. File with the US Department of Labor Wage and Hour Division or your state agency, and document hours with timesheets or clock-in records. Each state wage guide links the relevant department so you can start a claim quickly.
Beyond statutory overtime, many employers pay shift differentials for evenings, nights, or weekends — often 10–20% extra. A $20/hour worker on a 15% night differential earns $23/hour for those hours, and overtime on top computes on the higher rate. These premiums are common in healthcare, manufacturing, and public safety; always ask whether they apply before comparing offers.
The easiest overtime disputes to win are the ones documented from day one. Free apps and even a simple spreadsheet that logs clock-in, clock-out, and unpaid breaks create a record that matches — or contradicts — your pay stub. If the two diverge, you have the evidence to raise it. The Overtime Pay Calculator turns those logged hours into a dollar claim in seconds.
Related: Hourly to Salary · 2026 Tax Guide · 50 State Wage Guides. Figures are 2026 estimates for guidance only.
Enter your hourly wage and overtime hours, then click "Calculate Overtime Pay" to see your weekly, monthly, and annual overtime earnings.