Guide
How to Calculate Overtime Pay
Overtime pay is your regular rate multiplied by an overtime rate — usually time and a half — for the hours over a threshold. The arithmetic is simple; the parts that need care are the regular rate and the threshold, both of which depend on your situation and location.
The formula
overtime rate = regular hourly rate × multiplier
overtime pay = overtime rate × overtime hours
gross pay = regular hours × regular rate + overtime pay
Example: $20 an hour, 46 hours in the week, US federal rule. 40 hours at $20 is $800. 6 overtime hours at $30 (1.5 × $20) is $180. Gross pay is $980.
What "time and a half" means
1.5 times the regular rate. On $18 an hour that is $27. "Double time" is 2× ($36). Some awards and contracts use other multipliers.
The regular rate is not always your hourly wage
- Salaried non-exempt: divide the weekly salary by the hours it covers to get the regular rate, then apply the formula.
- Two pay rates in one week: the regular rate is the weighted average of the rates, based on hours at each.
- Non-discretionary bonuses and commission: under US federal law these are added into the regular rate for the weeks they cover, which raises the overtime rate.
Thresholds by location
These are calculation starting points, not legal advice — your entitlement depends on your employee classification, award or contract, and current law.
| Where | Overtime threshold | Rate |
|---|---|---|
| US — federal (FLSA) | Over 40 hours / week | 1.5× |
| US — California | Over 8 hours / day or 40 / week; over 12 / day | 1.5× then 2× |
| Canada — Ontario | Over 44 hours / week | 1.5× |
| Canada — federal | Over 40 hours / week | 1.5× |
| United Kingdom | No statutory overtime rate — set by contract | Contractual |
| Australia | Set by the relevant modern award (often 38-hour week) | Award-based, often 1.5× then 2× |
The UK's 48-hour Working Time limit caps average weekly hours for health and safety; it does not require any overtime pay.
Do salaried employees get overtime?
Often not. Under the FLSA, employees classified as exempt — which generally requires both a salary above a set level and certain job duties — are not entitled to overtime. Non-exempt employees are, whether they are paid hourly or by salary.
Calculators
- Overtime Calculator — enter your rate and hours, pick a rule or set your own.
- Time Card Calculator — a full week of shifts with the overtime split applied.
- Hourly Pay Calculator — gross pay projections including overtime.
Sources
- US Department of Labor, Wage and Hour Division — Overtime Pay (Fair Labor Standards Act)
- California Department of Industrial Relations — Overtime
- Ontario — Employment Standards Act: Overtime
- GOV.UK — Overtime: your rights
- Fair Work Ombudsman — Overtime pay
See the Methodology & Sources page for how these rules are applied in the calculator.