How to calculate overtime pay
Overtime pay is the overtime hours multiplied by the hourly rate and the overtime multiplier. Under the Fair Labor Standards Act (FLSA), the multiplier is 1.5 for every hour over 40 in a workweek. At $20 an hour and 45 hours worked, that is 40 × $20 = $800 regular pay plus 5 × $30 = $150 overtime pay, $950 in total.
The FLSA counts hours per workweek: a fixed, recurring period of seven consecutive 24-hour days. Hours can't be averaged over two weeks, and federal law requires no overtime for long days, weekends or holidays as long as the week stays at or under 40 hours.
California daily overtime and double time
California Labor Code § 510 adds daily limits. Hours over 8 in a workday are paid at 1.5 times the regular rate and hours over 12 at twice the rate. Weekly overtime still applies to regular hours over 40, but an hour that already counts as daily overtime isn't paid twice.
On the seventh consecutive day of work in a workweek, the first 8 hours are paid at 1.5 times the rate and every hour after that at double time. The calculator applies this rule when all seven days of the week have hours entered.
What the regular rate includes
The calculator assumes a single hourly rate. In practice, the regular rate of pay for overtime also includes most non-discretionary bonuses, commissions and shift differentials, so the overtime rate can be higher than 1.5 times the base wage.
Overtime rules apply to non-exempt employees. Salaried employees who meet the FLSA's salary and duties tests for executive, administrative or professional work are exempt.
Legal basis and sources
- Fair Labor Standards Act, 29 U.S.C. § 207 (overtime after 40 hours in a workweek)
- 29 CFR Part 778 (overtime compensation, regular rate of pay, workweek)
- California Labor Code § 510 (daily overtime, double time, seventh-day rule)