Overtime Calculator

Federal overtime rules in brief

Under the Fair Labor Standards Act (FLSA), covered non-exempt employees must be paid at least one and one-half times their regular rate for every hour over 40 in a workweek. A workweek is a fixed, recurring period of 168 hours (seven consecutive 24-hour periods); it can start on any day or hour.

Each workweek stands on its own. Your employer can't average 30 hours one week with 50 the next to avoid overtime, even if you're paid every two weeks. The FLSA also doesn't require extra pay for weekends, holidays or long days as such: overtime is triggered by hours over 40 in the week, not by when you work them. Employers can pay more by contract or policy, and some union agreements pay double time.

The regular rate isn't always just your base wage. It includes all pay for employment except payments the law specifically excludes, such as discretionary bonuses, gifts and expense reimbursements. This calculator uses the hourly rate you enter, so if you earn other extras on top of it, your true overtime rate may be higher. Overtime earned in a workweek should normally be paid on the regular payday for that period.

Exempt vs. non-exempt

Overtime rules apply to non-exempt employees. Some salaried workers in executive, administrative and professional roles are exempt, but only if they meet both a salary test and a duties test set by the Department of Labor. Job titles don't decide it, and being paid a salary doesn't by itself make you exempt. Many salaried employees are still owed overtime.

If you think you're misclassified, the Department of Labor's Fact Sheet #17A sets out the tests.

State overtime laws

States can set their own, stricter overtime rules on top of the federal ones. California is the best-known example: non-exempt workers get time and a half for hours over 8 in a workday (up to 12) and for the first 8 hours on the seventh consecutive day of a workweek, and double time for hours over 12 in a day and over 8 on that seventh day.

For daily overtime, add up the hours yourself and use the separate-hours option: put the 1.5× hours in overtime and the 2× hours in double time. Check your state labor department for its rules.

Overtime and federal taxes

Overtime is taxed like the rest of your wages; there's no separate overtime tax rate, though a bigger paycheck can mean more withheld. Under the federal "no tax on overtime" deduction, workers may deduct qualified overtime pay that exceeds their regular rate (the premium shown above), up to $12,500 a year ($25,000 on a joint return), phasing out above $150,000 of modified adjusted gross income ($300,000 joint). It's claimed on your tax return. See the IRS for the eligibility rules; this calculator doesn't estimate taxes.

The overtime formula

• R = regular hourly rate
• H_reg = regular hours (up to 40 a week under federal law)
• m = overtime multiplier (1.5 for time and a half)
• H_ot = overtime hours; H_dt = double-time hours

Example

1. You earn $25 an hour and work 45 hours this week.
2. Regular pay: 40 × $25 = $1,000.00.
3. Overtime rate: $25 × 1.5 = $37.50. Overtime pay: 5 × $37.50 = $187.50.
4. Gross pay: $1,000.00 + $187.50 = $1,187.50, an average of $26.39 for each of the 45 hours.
5. The overtime premium, the part above your regular rate, is 5 × $12.50 = $62.50.

Frequently asked questions