Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5 times their regular rate of pay for every hour over 40 in a workweek. The formula:
Overtime pay = (hours worked − 40) × hourly rate × 1.5
Total pay for the week is then 40 × hourly rate plus the overtime pay.
Worked example
Maria earns $20 an hour and worked 46 hours 30 minutes this week.
- Convert to decimal hours. 30 minutes = 0.5 hour, so 46 h 30 min = 46.5 hours. The time to decimal chart lists every minute.
- Regular pay: 40 × $20 = $800.
- Overtime hours: 46.5 − 40 = 6.5 hours.
- Overtime rate: $20 × 1.5 = $30 an hour.
- Overtime pay: 6.5 × $30 = $195.
- Total: $800 + $195 = $995.
The time card calculator does all of this from clock-in and clock-out times, including breaks.
Converting minutes to decimal hours
Payroll uses decimal hours, so divide the minutes by 60. 15 minutes = 0.25, 20 minutes = 0.33, 45 minutes = 0.75. A common mistake is writing 7 h 30 min as 7.30. It’s 7.5.
What counts as the workweek
A workweek is any fixed, recurring period of seven consecutive 24-hour days chosen by the employer. It doesn’t have to start on Sunday or Monday. Each workweek stands alone: you can’t average 30 hours one week and 50 the next to avoid overtime.
Daily overtime in some states
Federal law has no daily overtime, but some states do. Where state and federal rules differ, the rule that’s better for the employee applies.
- California: 1.5× after 8 hours in a day and double time after 12 hours in a day, plus special rules for the seventh consecutive day worked in a workweek.
- Alaska and Nevada also have overtime after 8 hours in a day, with conditions.
- Colorado requires overtime after 12 hours in a day.
Check your state labor department for the current rules and exceptions.
The “regular rate” can be more than the hourly wage
For overtime, the regular rate generally includes non-discretionary pay such as production bonuses and shift differentials, not just the base hourly wage. If you earn these, the overtime rate can be higher than 1.5 × your base rate.
Who doesn’t get overtime
Exempt employees, mainly salaried executive, administrative and professional staff who meet the federal salary and duties tests, are not entitled to overtime. Having a salary alone doesn’t make someone exempt.
Related tools
Use the hours calculator for the time between two clock times, and the work hours calculator for daily, weekly and yearly hours after breaks.
This guide explains the general rules and isn’t legal advice. For a specific situation, check with your state labor department or the U.S. Department of Labor.