Time and a Half Calculator — Overtime Pay Estimator

Understanding how your paycheck is calculated when you work extra hours is crucial for ensuring you are paid fairly. Our time and a half calculator helps you estimate your gross overtime pay instantly, whether you're earning standard time-and-a-half or premium double-time rates.

What Is "Time and a Half"?

"Time and a half" refers to the overtime pay rate of 1.5 times your regular hourly wage. Under the Fair Labor Standards Act (FLSA) in the United States, non-exempt employees must receive this enhanced rate for all hours worked in excess of 40 hours in a single workweek.

For example, if your regular rate is $20 per hour, your time-and-a-half rate would be:

This premium pay structure is designed to do two things: fairly compensate employees for the burden of working long hours, and financially encourage employers to hire more staff rather than overworking existing employees to the point of burnout.

How to Calculate Your Overtime Pay

Calculating your overtime pay involves three simple steps. While our calculator above does the heavy lifting for you instantly, understanding the manual formula is beneficial for independently verifying your pay stubs. The core principle is that any hours worked beyond the standard 40-hour workweek must be compensated at a premium rate. Here is the step-by-step process:

Step 1: Determine Your Regular Rate

Your regular rate is the hourly amount you are paid for the first 40 hours of work. If you are paid a salary, you can calculate your hourly equivalent by dividing your weekly salary by the number of hours it is intended to cover (typically 40).

Step 2: Calculate Your Overtime Rate

Once you have your regular hourly rate, you need to determine your overtime premium. Multiply your regular hourly rate by 1.5. This new rate is what you will earn for every hour worked over 40.

• Formula: Regular Rate × 1.5 = Overtime Rate

Step 3: Multiply by Overtime Hours

Determine the total number of hours you worked in excess of 40 during the specific workweek. Multiply this number by your calculated overtime rate to find your total overtime earnings. Remember, overtime is calculated on a weekly basis, not daily (unless state law says otherwise).

• Formula: Overtime Hours × Overtime Rate = Total Overtime Pay

Example Calculation

Let's say you earn $24 per hour and worked 48 hours last week.

1. Regular Pay: 40 hours × $24 = $960
2. Overtime Rate: $24 × 1.5 = $36 per hour
3. Overtime Pay: 8 hours × $36 = $288
4. Total Gross Pay: $960 + $288 = $1,248

When Is Double Time Required?

"Double time" refers to a pay rate of 2.0 times your regular hourly wage. Contrary to popular belief, double time is not required by federal law under the FLSA. However, it may be required in specific situations:

• State Laws: California has strict overtime laws requiring double time for hours worked over 12 in a single day or for all hours worked in excess of 8 on the seventh consecutive day of work.
• Union Contracts: Collective bargaining agreements often mandate double time for work on Sundays, holidays, or after consecutive shifts.
• Company Policy: Some employers voluntarily offer double time as an incentive for working undesirable shifts or holidays to ensure coverage.

State-Specific Overtime Rules

While federal law sets the baseline at 40 hours per week, several states have enacted more protective overtime laws. Understanding your state's specific rules is crucial for accurately calculating your pay.

Daily Overtime States

California, Alaska, Nevada, and Colorado require overtime pay for hours worked beyond a daily threshold (typically 8 or 12 hours), regardless of total weekly hours. For example, in California, if you work 10 hours on Monday but only 30 hours total for the week, you are still entitled to 2 hours of overtime pay for that Monday.

Seventh Consecutive Day Rules

California also mandates that if you work all seven days of a workweek, the first 8 hours on the seventh day are paid at time-and-a-half, and any hours beyond 8 on that day are paid at double time. This rule applies regardless of whether you exceeded 40 hours during the week.

Always check your state's Department of Labor website or consult the U.S. DOL State Labor Offices page for the most current regulations in your area.

FLSA Rules: Exempt vs. Non-Exempt Employees

The Fair Labor Standards Act (FLSA) establishes the ground rules, but not every employee is entitled to overtime pay. The law defines specific categories of "exempt" and "non-exempt" status based on job duties and salary level.

Non-Exempt Employees

Non-exempt employees are the primary beneficiaries of FLSA overtime rules. They are entitled to overtime pay for all hours worked over 40 in a workweek. This category typically includes hourly workers, retail staff, construction workers, and first responders (police, fire, paramedics), regardless of their annual earnings. If you are non-exempt, your employer must pay you time and a half for overtime; they cannot opt out.

Exempt Employees

Exempt employees are not entitled to overtime pay. To be considered exempt, an employee generally must meet three tests:

1. Salary Basis Test: Be paid a fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed.
2. Salary Level Test: Earn at least $844 per week ($43,888 annually) as of July 1, 2024. Note: This threshold is set to increase to $1,128 per week ($58,656 annually) on January 1, 2025.
3. Duties Test: Perform executive, administrative, or professional duties as defined by the Department of Labor (e.g., managing others, exercising independent judgment).

For more details on exemptions, visit the U.S. Department of Labor (DOL) website.

Negotiating Overtime Pay as a Salaried Employee

If you are a salaried employee who is exempt from FLSA overtime rules, you might feel left out when working late. While not guaranteed, you can sometimes negotiate for compensation:

• Comp Time: Ask if you can take time off equivalent to the extra hours worked (though regular employers are not legally required to grant this).
• Performance Bonuses: If you consistently work late to complete projects, document this and use it as leverage during performance reviews to ask for a merit-based raise or bonus.

Tax Implications of Overtime

A common myth is that overtime pay is taxed at a penalizing rate, often described as "moving you into a higher tax bracket" that eats up all your extra earnings. This is largely a misunderstanding.

While overtime pay is taxed like regular income, the federal tax withholding on that specific paycheck might be higher because the payroll software "annualizes" that paycheck—meaning it calculates taxes as if you made that much money every week of the year.

However, your actual tax liability is based on your total annual income at the end of the year. Any excess withholding taken out of your overtime check will be refunded to you when you file your tax return. You are almost always better off earning overtime pay than not earning it, despite the progressive tax system.

Common Overtime Myths Debunked

Frequently Asked Questions