To calculate time and a half, multiply your regular hourly rate by 1.5 to get the overtime rate, then multiply that rate by the number of overtime hours you worked. Under the federal Fair Labor Standards Act (FLSA), most non-exempt employees must receive at least time and a half for hours worked over 40 in a workweek. This guide shows the formulas, works through examples with our time and a half calculator, and covers the details that most often cause paycheck mistakes.
The basic formulas
Overtime pay = Overtime hours × Overtime rate
Gross weekly pay = (Regular hours × Regular rate) + Overtime pay
At an example rate of $22 an hour, the overtime rate is $33.00.
Worked example
Suppose you earn $22 an hour and work 48 hours in one workweek:
- Overtime hours = 48 − 40 = 8.
- Overtime rate = $22 × 1.5 = $33.00.
- Regular pay = 40 × $22 = $880.00.
- Overtime pay = 8 × $33.00 = $264.00.
- Gross pay = $880.00 + $264.00 = $1,144.00.
Your effective hourly rate for the week, gross pay divided by all hours, is $23.83. If every week looked like this, the annual gross would be about $59,488 over 52 weeks.
The "half" shortcut
Another way to compute the same result is to pay every hour at the regular rate and then add a half-rate premium for the overtime hours:
For the example: 48 × $22 + 8 × $11.00 = $1,144.00, the same total. Payroll systems often use this form, and it is especially useful when the regular rate changes because of bonuses, as shown below.
Overtime rates at common wages
| Regular rate | Time and a half |
|---|---|
| $15.00 | $22.50 |
| $18.00 | $27.00 |
| $20.00 | $30.00 |
| $25.00 | $37.50 |
| $30.00 | $45.00 |
| $40.00 | $60.00 |
How much overtime adds to a week
| Overtime hours | Regular pay | Overtime pay | Gross weekly pay | Effective hourly rate |
|---|---|---|---|---|
| 0 | $880.00 | $0.00 | $880.00 | $22.00 |
| 5 | $880.00 | $165.00 | $1,045.00 | $23.22 |
| 10 | $880.00 | $330.00 | $1,210.00 | $24.20 |
| 15 | $880.00 | $495.00 | $1,375.00 | $25.00 |
| 20 | $880.00 | $660.00 | $1,540.00 | $25.67 |
Ten hours of overtime at this wage increases gross weekly pay by 37.5% while adding 25% more hours. The overtime premium is what makes the percentage increase in pay larger than the percentage increase in hours.
Double time
Federal law does not require double time. Some states require it in certain situations, and some employers or union contracts provide it voluntarily, for example for holidays or long shifts. Double time is simply the regular rate times 2. With 8 hours of time and a half and 4 hours of double time on top of 40 regular hours at $22:
| Component | Hours | Rate | Pay |
|---|---|---|---|
| Regular | 40 | $22.00 | $880.00 |
| Time and a half | 8 | $33.00 | $264.00 |
| Double time | 4 | $44.00 | $176.00 |
| Total | 52 | $1,320.00 |
Rules that change the answer
The workweek is fixed
Federal overtime is calculated per workweek, a fixed and regularly recurring period of 168 hours (seven consecutive 24-hour days) set by the employer. Each workweek stands alone. Hours cannot be averaged across two weeks to avoid overtime. Consider an example: you work 50 hours one week and 30 the next at $22 an hour.
| Approach | Pay for the two weeks |
|---|---|
| Correct: each week calculated separately | $1,870.00 |
| Incorrect: 80 hours averaged as two 40-hour weeks | $1,760.00 |
The difference, $110.00, is the overtime premium for the 10 hours over 40 in the first week. This matters for workers paid biweekly: the pay period may be two weeks, but overtime is still determined week by week.
Daily overtime in some states
The FLSA has no daily overtime rule; a 12-hour day does not trigger federal overtime if the week totals 40 hours or less. Some states set their own rules. California, for example, generally requires overtime for hours over 8 in a workday and double time for hours over 12 in a workday, in addition to weekly overtime. When state and federal rules differ, the employee generally receives the more generous standard. Check your state labor department's rules for your situation.
The regular rate can include more than base pay
The 1.5 multiplier applies to the regular rate of pay, which can be higher than your base hourly wage. Many nondiscretionary payments, such as production bonuses, attendance bonuses and shift differentials promised in advance, must generally be included in the regular rate. Discretionary bonuses, certain gifts and some other payments can be excluded.
Example: you earn $22 an hour, work 50 hours, and earn a $100 production bonus that week.
- Straight-time earnings = 50 × $22 + $100 = $1,200.00.
- Regular rate = $1,200.00 ÷ 50 hours = $24.00.
- Overtime premium = 10 overtime hours × ($24.00 × 0.5) = $120.00.
- Total = $1,200.00 + $120.00 = $1,320.00.
If the bonus were left out of the regular rate, the overtime premium would be $110.00 instead of $120.00. The difference is small in one week but adds up over a year.
Salaried does not always mean exempt
Exempt status depends on both a salary level and the duties of the job, under Department of Labor rules. Many salaried employees are non-exempt and are entitled to overtime. For a non-exempt employee paid a fixed salary for a 40-hour week, the regular rate is the weekly salary divided by 40. Example: a $1,000 weekly salary for 40 hours gives a regular rate of $25.00. Working 45 hours adds 5 overtime hours at $37.50, or $187.50. Other salary arrangements use different methods, so if your pay is structured differently, check with your employer or the Department of Labor's guidance.
Comp time
Private employers generally cannot give compensatory time off instead of overtime pay to non-exempt employees. Public-sector employers may, under specific rules. Shifting hours within the same workweek to avoid going over 40 is allowed, but banking extra hours for later time off in a different week generally is not, for private employers.
Hours worked
Overtime depends on hours actually worked, which can include more than time at a desk or on a line. Required pre-shift activities, short rest breaks and on-call time where you cannot use the time for yourself may count. Paid holidays, vacation and sick time are usually not hours worked for overtime purposes, unless an employer's policy or contract says otherwise.
Two jobs at two rates for the same employer
If you do two different jobs for the same employer at different hourly rates in one workweek, the regular rate is usually a weighted average of the two, based on hours worked at each. Example: 30 hours at $22 and 15 hours at $18 in one week.
- Straight-time earnings = 30 × $22 + 15 × $18 = $930.00.
- Regular rate = $930.00 ÷ 45 hours = $20.67.
- Overtime premium = 5 hours × ($20.67 × 0.5) = $51.67.
- Total pay = $981.67.
Federal rules also allow, under certain conditions agreed in advance, overtime to be paid at 1.5 times the rate of the job actually performed during the overtime hours. If you work multiple roles, your pay stub or employer can tell you which method is used. Two separate employers do not combine hours; each one counts only the hours worked for it, unless they are considered joint employers.
What overtime adds up to over a year
Small amounts of regular overtime add up. At $22 an hour, five overtime hours every week adds $165.00 a week. Over 50 working weeks, that is $8,250 of extra gross pay, before taxes. To earn the same with a raise on a 40-hour week, the hourly rate would have to rise by about $4.13, roughly 18.8%. That comparison is the subject of our guide on overtime vs a pay raise.
Keep in mind that, for most hourly workers, overtime is rarely guaranteed from one month to the next. Employers adjust schedules as demand changes, so budgeting for it as if it were base pay can leave a gap when hours drop. A common approach is to budget on regular pay and direct overtime earnings to specific goals, such as an emergency fund or paying down debt.
Is the extra time worth it?
The overtime premium makes extra hours better paid than regular ones, but the decision is about more than money. Long hours can affect health, sleep, family time and job performance, and in some jobs they increase the risk of accidents. Commuting, childcare and meals during long shifts can also eat into the extra pay. A useful check is to take the after-tax overtime pay, subtract any added costs, and divide by the extra hours. If that net hourly figure is worth the time to you, the overtime makes sense; if not, other options such as a raise, a new role or training for a higher-paying position may be better long-term moves.
Keeping your own record of hours
Employers are required to keep accurate time records for non-exempt employees, but keeping your own simple log is a good habit. Note the date, start and end times, unpaid meal breaks and any work done before or after your scheduled shift, such as answering messages or finishing tasks. A personal record makes it much easier to spot a missing overtime hour on a pay stub, and it is useful evidence if you ever need to raise a question with payroll. Many people use a notes app or a spreadsheet; the important thing is to record hours each day, while they are fresh, rather than trying to reconstruct a whole week from memory later.
Overtime and taxes
Overtime pay is wages, so it is subject to federal income tax withholding, Social Security and Medicare taxes, and state income tax where applicable. A paycheck with overtime can look like it was taxed at a higher rate because withholding tables treat that paycheck as if it were your normal pay for the whole year. Your actual tax is settled on your annual return based on total income. Federal rules on the tax treatment of overtime have been the subject of recent legislation, so check current IRS guidance for the year you are filing rather than relying on older assumptions.
Overtime vs a raise
Overtime can raise income quickly, but it depends on hours being available and on your energy. Our guide on overtime vs a pay raise compares how many overtime hours equal a given raise, and the pay raise calculator converts a raise into weekly and monthly amounts. For understanding raise percentages themselves, see pay raise percentage explained.
How to check your paycheck
- Find the start and end of your employer's workweek.
- Total the hours you worked in each workweek separately.
- Subtract 40 from each week's total to find overtime hours (and apply any state daily rules).
- Work out your regular rate, including nondiscretionary bonuses or differentials.
- Multiply overtime hours by 1.5 times the regular rate.
- Compare the result with the overtime line on your pay stub.
If the numbers do not match, ask your payroll department first; many errors come from timekeeping mistakes. If a problem persists, the Department of Labor's Wage and Hour Division and state labor agencies handle overtime complaints.
Common mistakes
- Averaging hours across a pay period. Overtime is calculated per workweek.
- Using base pay only. Nondiscretionary bonuses usually belong in the regular rate.
- Assuming salaried means no overtime. Exemption depends on salary level and duties.
- Ignoring state rules. Daily overtime and double time vary by state.
- Counting paid leave as overtime hours. Usually it is not hours worked.
- Forgetting off-the-clock work. Required tasks done before clocking in or after clocking out, such as setup, security checks or answering work calls, can count as hours worked and may push a week over 40.
Key takeaways
Time and a half is 1.5 times your regular rate, paid for hours over 40 in a workweek for most non-exempt employees. At $22 an hour, that is $33.00, and 8 overtime hours turn a $880.00 week into $1,144.00. Calculate each workweek separately, include nondiscretionary bonuses in the regular rate, and check your state's rules for daily overtime or double time. The time and a half calculator does the math for any rate and hours, including double time.
