⏱️ Overtime Calculator
Calculate your overtime pay at 1.5x (time-and-a-half) and double time rates. See your total weekly and annual earnings with overtime.
Why Use This Calculator?
1.5x Time-and-a-Half Calculation
Calculate overtime pay at 1.5× regular hourly rate per FLSA requirements. $20/hour = $30/hour overtime. 10 OT hours weekly = $15,600 extra annually vs straight time.
Tax Withholding Impact on OT Pay
See actual take-home from overtime after taxes. OT taxed same as regular wages, but larger paychecks trigger higher withholding. $1,200 OT gross typically nets $780-840 (65-70%) after federal/state/FICA.
Double-Time Weekend/Holiday Pay
Calculate 2× pay for holidays/Sundays (union contracts, CA 7th consecutive day). $25/hour = $50/hour double-time. 8 hours = $400 gross vs $200 regular, $150+ additional take-home.
Annual Overtime Income Projection
Project total annual earnings with consistent OT. 5 hours OT weekly at $20/hour = $7,800/year extra. Factor into budgeting, debt payoff, or retirement contributions.
Exempt vs Non-Exempt Classification
Understand FLSA exemptions - salary employees over $684/week ($35,568/year) in exempt roles get no OT. Misclassification costs workers thousands annually in unpaid OT.
Regular Rate Calculation for Bonuses
Include non-discretionary bonuses in regular rate calculation. $45k salary + $5k bonus ÷ 2,080 hours = $24.04 rate, not $21.63. Affects OT rate: $36.06 vs $32.45 per hour.
Step-by-Step Guide
Determine Your Hourly Rate
If salaried non-exempt, divide annual salary by 2,080 hours (52 weeks × 40 hours). If hourly, use your stated rate. This is your regular rate for OT calculation.
Example:
Example: $50,000 salary ÷ 2,080 = $24.04/hour regular rate
Count Overtime Hours
Federal: hours over 40 in workweek. Some states: over 8 in day (CA), over 40 weekly AND over 12 daily. Double-time: over 12 hours/day or 7th consecutive day (CA).
Example:
Example: 50-hour week = 10 OT hours. CA: 10 hrs one day = 2 OT + 2 double-time
Calculate Overtime Rate
Time-and-a-half: multiply regular rate by 1.5. Double-time: multiply by 2. Use these rates for hours over standard limits. Blended rate if multiple OT types.
Example:
Example: $24/hour × 1.5 = $36/hour OT rate, × 2 = $48/hour double-time
Compute Gross Overtime Pay
Multiply OT hours by OT rate for gross OT earnings. Add to regular pay for total gross. This is before any taxes or deductions.
Example:
Example: 10 OT hours × $36 = $360 OT pay + $960 regular = $1,320 total gross
Factor in Tax Withholding
OT taxed at same marginal rate as regular wages. Larger paycheck may trigger higher withholding percentage (annualized method). Expect 25-35% total withholding (federal/state/FICA) on OT dollars.
Example:
Example: $360 OT × 30% withholding = $108 taxes, $252 net OT take-home
Include State-Specific Rules
California: OT after 8 hours/day, double after 12, double on 7th consecutive day. Alaska: OT after 8 hours/day. Colorado: OT after 12 hours/day or 40/week. Nevada: OT after 8 hours if rate under 1.5× minimum.
Example:
Example: CA worker: 4 hours over 8 = OT, 2 hours over 12 = double-time in same day
Account for Non-Discretionary Bonuses
FLSA requires including certain bonuses in regular rate: production bonuses, attendance bonuses, safety bonuses. Discretionary holiday gifts excluded. Affects OT rate calculation.
Example:
Example: $48k + $4k attendance bonus = $25/hour regular rate (not $23.08)
Calculate Take-Home After Deductions
Subtract taxes (federal/state/FICA 25-35%), 401k contributions, health insurance, other deductions. OT gross to net typically 65-70%. Budget based on net OT income only.
Example:
Example: $360 OT gross - $108 tax - $36 401k (10%) = $216 net OT take-home (60%)
Project Weekly to Annual OT Income
Multiply weekly OT by 52 for annual projection. Important for budgeting if OT is regular/expected. Unreliable for sporadic OT - don't build fixed expenses around variable OT.
Example:
Example: 8 OT hours weekly × $36 × 52 weeks = $14,976 annual OT gross
Compare OT vs Second Job
OT at 1.5× rate often beats second job at straight time. $30/hour OT (from $20 base) vs $15/hour side gig = double pay per hour. Factor in commute time, taxes, burnout.
Example:
Example: 10 hours OT = $300 gross vs 10 hours at $15 side job = $150, half the earnings
Expert Tips & Strategies
Understand OT is Taxed Same as Regular Pay
OT isn't taxed higher - same marginal rate as regular wages. It SEEMS taxed more because larger paychecks trigger higher withholding %. Get refund when filing if over-withheld. Calculate actual marginal rate (22-24% typical) and expect that + FICA (7.65%) + state taxes.
Know Your FLSA Exempt Status
Exempt employees (earning $684+/week, doing executive/professional/admin work) get zero OT regardless of hours. Many employers misclassify to avoid OT costs. If unsure, check FLSA duties test - job title doesn't determine exemption, actual duties do. Challenge misclassification.
Track OT Hours Meticulously
Keep personal time log to verify paystub accuracy. Wage theft via unpaid OT is common ($8 billion/year nationwide). Document start/end times, breaks, OT worked. Compare to paychecks. Report discrepancies to DOL if employer doesn't correct.
Volunteer for High-Rate OT Opportunities
Holiday OT often 2× rate ($40-60/hour) vs 1.5× regular ($30-45). Weekend shifts may include shift differentials stacking with OT premium. 8 hours holiday double-time at $50 = $400 gross, $260-280 net - beats 13+ hours regular time.
Don't Build Fixed Expenses on Variable OT
If OT is optional/sporadic, don't commit to higher rent/car payment based on OT income. Budget on base pay only, use OT for savings/debt payoff/luxuries. OT disappearing (slowdown, new policy, automation) shouldn't threaten basic living expenses.
Contribute OT to 401k for Tax Efficiency
OT pushes you higher in marginal bracket - perfect for 401k contributions. $10,000 annual OT at 22% bracket: contribute to 401k saves $2,200 federal + $765 FICA + state taxes. Grows tax-free. Better than paying 30-35% taxes on OT dollars.
Beware Comp Time in Private Sector
Private employers cannot offer comp time (paid time off) instead of OT pay - FLSA requires cash payment. Only public sector (government) can legally offer comp time. Private employer forcing comp time violates law - report to Department of Labor.
Calculate True Hourly Value of Salaried OT
Exempt salaried working 50-60 hour weeks loses $10k-20k+ annually in unpaid OT. $60k salary ÷ 50 hours = $23/hour actual rate (not $28.85 at 40 hours). Factor into job comparisons - lower-paying hourly with OT may beat higher-salaried exempt position.
Common Mistakes to Avoid
✓ Better approach: OT dollars taxed at same marginal rate as regular wages. Larger paychecks trigger higher withholding percentage, but actual tax rate unchanged. A 22% bracket worker pays 22% on all wages, regular or OT. May get refund if withholding overshoots. Understand withholding ≠ actual tax.
✓ Better approach: Non-discretionary bonuses (production, attendance, safety) must be included in regular rate per FLSA. $50k salary + $5k bonus = $26.44/hour rate, not $24.04. OT rate $39.66 vs $36.06 - costs employer $3.60/hour more. Many employers ignore this - loses workers $1,000s annually.
✓ Better approach: Private sector employers offering comp time (time off instead of 1.5× pay) violates FLSA. Only public employers can legally offer comp time, and employee must agree. Private sector must pay cash for OT hours. Accepting comp time means losing 50% of earned OT compensation.
✓ Better approach: Relying on federal 40-hour weekly rule when state requires daily OT (CA/AK after 8 hours, CO after 12). CA worker doing four 12-hour days = 16 OT hours weekly, not zero. Missing daily OT loses $400-800 weekly in CA. Know your state rules - some exceed federal minimums.
✓ Better approach: Buying house/car based on income including OT, then OT disappears (business slowdown, manager change, automation). $20k annual OT = $1,666/month gross, $1,083 net. Committing to $1,000 higher mortgage traps you if OT vanishes. Budget fixed costs on base pay only.
✓ Better approach: Accepting "manager" or "supervisor" title making you "exempt" despite doing mostly non-exempt work. FLSA exemption requires salary $684+/week AND executive/professional/admin duties. Job title irrelevant. Misclassification costs $5,000-15,000/year in unpaid OT for 45-50 hour weeks.
✓ Better approach: Working through lunch, answering emails at home, arriving early for setup counts as work time requiring OT if over 40 hours. Employer saying "no unauthorized OT" doesn't waive payment obligation if you worked. Track all work time, demand payment. Off-clock work = wage theft.
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Frequently Asked Questions
What is overtime pay?
Overtime pay is compensation for hours worked beyond the standard 40-hour workweek. Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid at least 1.5 times their regular rate for hours worked over 40 in a workweek.
Who is eligible for overtime pay?
Most hourly employees are eligible for overtime. Salaried employees earning less than $684/week ($35,568/year) are also eligible. Exempt employees (certain managers, professionals, administrative staff) are not entitled to overtime regardless of hours worked.
What is double time?
Double time is 2x your regular hourly rate, typically paid for working holidays, Sundays (in some states), or hours beyond a certain threshold (like over 12 hours in one day in California). Double time requirements vary by state and employer.
Is overtime calculated daily or weekly?
Federal law calculates overtime weekly (over 40 hours per week). However, some states like California also have daily overtime rules (over 8 hours per day). Check your state laws as they may be more generous than federal requirements.
Can my employer refuse to pay overtime?
No. If you are a non-exempt employee and work over 40 hours per week, your employer must pay overtime. Employers cannot avoid overtime by calling you a contractor or salaried employee if you dont meet the legal criteria for exemption.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.