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Overtime Calculator – Calculate Overtime Pay | AskSMB
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Overtime Calculator

Calculate overtime pay and total compensation for employees and small businesses

$

Employee's regular hourly wage

Hours paid at standard rate (typically 40/week)

Hours worked beyond regular time

×

Typically 1.5× (time-and-a-half) or 2× (double-time)

Regular Pay

$0.00

Pay for standard working hours

Overtime Pay

$0.00

Additional pay for overtime hours

Total Pay

$0.00

Regular pay + overtime pay

Effective Hourly Rate

$0.00

Total pay ÷ 0 hours worked

Pay Breakdown

How the Overtime Calculator Works

What is overtime pay?

Overtime pay is additional compensation paid to non-exempt employees for hours worked beyond the standard workweek (typically 40 hours). Under the Fair Labor Standards Act (FLSA), covered employees must receive at least 1.5 times their regular hourly rate for overtime hours. This requirement helps protect workers from excessive work hours and ensures fair compensation for extended work time.

Common overtime rules (1.5×, 2×)

Overtime rates vary based on circumstances and location:

  • Time-and-a-half (1.5×): Federal law requires this minimum for overtime hours
  • Double-time (2×): Often used for holidays, Sundays, or excessive overtime
  • Daily overtime: Some states require overtime for hours over 8 or 12 per day
  • Seventh day: California requires 1.5× for first 8 hours, 2× thereafter
  • Union contracts: May specify different rates or thresholds

Who qualifies for overtime?

Not all employees are entitled to overtime pay. Key factors include:

  • Non-exempt employees: Hourly workers and some salaried employees below the FLSA threshold
  • Exempt employees: Executive, administrative, professional roles meeting salary and duty tests
  • Salary threshold: Currently $684/week ($35,568/year) federally; higher in some states
  • Independent contractors: Not entitled to overtime (but misclassification is common)
  • Special exemptions: Outside sales, certain computer professionals, farm workers

How overtime affects labor costs

Overtime significantly increases labor costs for employers. For every overtime hour at time-and-a-half, the employer pays 50% more than regular time. This makes overtime expensive—often it's more cost-effective to hire additional staff or improve scheduling. However, overtime can be strategically useful for temporary workload spikes, seasonal demands, or specialized roles where hiring is difficult. Smart businesses track overtime patterns to identify inefficiencies, prevent burnout, and optimize workforce planning.

Common overtime calculation mistakes

Avoid these costly errors:

  • Misclassifying employees: Treating non-exempt employees as exempt to avoid overtime
  • Incorrect regular rate: Must include certain bonuses and shift differentials
  • Comp time instead of pay: Private employers generally cannot offer comp time in lieu of overtime pay
  • Averaging hours: Cannot average hours across multiple weeks to avoid overtime
  • Off-the-clock work: All work time (including emails, calls, travel) must be counted
  • State vs. federal law: Must comply with whichever law is more favorable to employees

Example Scenario

Scenario: An employee works overtime during a busy week.

Hourly rate: $20

Regular hours: 40

Overtime hours: 10

Overtime rate: 1.5×

Results:

• Regular pay: $800 (40 hours × $20)

• Overtime pay: $300 (10 hours × $20 × 1.5)

• Total pay: $1,100

• Effective hourly rate: $22 ($1,100 ÷ 50 hours)

The employee earns an extra $300 for 10 hours of overtime, increasing their effective hourly rate by 10% for that pay period.

Frequently Asked Questions

In the United States, overtime is typically any hours worked beyond 40 hours in a single workweek for non-exempt employees. Some states have daily overtime rules (e.g., California requires overtime for hours worked beyond 8 in a day). Independent contractors and certain salaried employees may be exempt from overtime requirements.

Related Tools

💡 Quick Tips

  • •All calculations happen in your browser - your data is private
  • •Results update in real-time as you type
  • •Export to PDF or share via link
  • •No sign-up required

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