The federal rule and the state rules
The Fair Labor Standards Act sets the floor: non-exempt employees earn at least 1.5 times their regular rate for every hour over 40 in a workweek. The workweek is any fixed run of seven days your employer sets, and hours cannot be averaged across two weeks. Hours in one long day do not count by themselves under the federal rule; only the weekly total does.
Some states go further and count by the day. California pays overtime after a set number of hours in a day, double time after a longer day, and overtime for the seventh straight day of work. The calculator applies whichever rule pays more for each hour, so no hour is paid overtime twice.
One week, two states
Take $25.00 an hour and a week of four ten-hour days plus a five-hour Friday, 45 hours in all. In Texas, which follows the federal rule, the week pays $1,000 regular and $188 overtime, $1,188 in all. In California the long days earn daily overtime too: 37 regular hours, 8 overtime hours and 0 double-time hours, for $1,225. The extra $38 is California's daily rule at work.
Very long days add double time. A 14-hour Monday followed by four eight-hour days in California pays $100 of double time and $1,250 for the week. Seven eight-hour days in a row pay $1,600, with the seventh day's hours at the overtime rate.
Who is owed overtime
Most hourly workers are covered. Salaried employees are exempt only if they meet a salary threshold and a duties test: executives who manage a team and can hire or fire, administrative staff who exercise independent judgment on matters of significance, and learned or creative professionals. Job titles do not decide it. An "assistant manager" who spends the day running a register is often owed overtime. Some jobs have their own rules, such as outside sales staff, certain computer professionals and some transport workers.
Public employers can give compensatory time off instead of overtime pay, at the same 1.5-for-one rate, but private employers cannot. If a private employer offers time off in place of overtime pay, the hours are still owed in cash.
When overtime is paid
Overtime earned in a workweek must be paid on the regular payday for that period. If the hours cannot be worked out by then, federal rules allow it on the next payday. Your pay stub should show overtime hours and pay on a separate line; if it does not, ask payroll how the week was counted, and keep your own record of the hours you start and finish each day.
What the inputs mean
- Hourly rate: the regular rate. Non-discretionary bonuses and shift differentials raise it for overtime purposes; include them if you know the amount.
- Hours each day: hours worked, not hours scheduled. Unpaid meal breaks are left out.
- State: where the work is done, which decides whether daily rules apply.
Common mistakes
- Counting paid holidays or sick days toward the 40 hours. Federal law counts only hours worked, though some contracts are more generous.
- Averaging two weeks. A 50-hour week and a 30-hour week still earn overtime for the first one.
- Assuming overtime is taxed at a special rate. It is ordinary pay; see the hourly paycheck calculator for the check after tax.
- Expecting all overtime to be deductible. Only the federal premium qualifies for the new deduction, as the no tax on overtime calculator shows.
Overtime questions
How is overtime calculated?
Under federal law, hours over 40 in a workweek are paid at 1.5 times the regular rate. At $25.00 an hour, a 60-hour week in Texas pays $1,000 of regular pay and $750 of overtime, $1,750 in all.
Do I get overtime for working more than eight hours in a day?
Only in states that require it. Alaska, California, Colorado and Nevada have daily or consecutive-day rules in our tables. Elsewhere only the weekly total counts, so four ten-hour days are paid at the regular rate.
Are salaried workers paid overtime?
Some are. The federal exemption applies only to salaried employees who meet both a salary threshold and a duties test (executive, administrative or professional work). A salaried worker who fails either test is owed overtime like an hourly worker.
Sources
Rules checked . How we calculate.