Overtime Pay Calculator
Calculate overtime pay at 1.5x or 2.0x rates based on hours worked, with support for double time thresholds and annual overtime cost projections using 2026 FLSA rules.
FLSA standard: 40 hrs/week
FLSA requires 1.5x (time and a half). Some agreements use 2.0x.
Hours after which double time applies (e.g., 60). California requires double time after 12 hrs/day.
Enter hours and rate, then click calculate.
What This Calculator Does
This overtime pay calculator computes weekly gross pay including overtime at 1.5x (time and a half) or custom multipliers. It supports double time thresholds for states like California, projects annual overtime costs, and references 2026 FLSA overtime rules including the $684/week ($35,568/year) salary exemption threshold.
The Formula
Under the FLSA, non-exempt employees must receive overtime at 1.5 times their regular rate for hours worked beyond 40 in a workweek. Some states and contracts require double time (2x) after certain daily or weekly thresholds. The effective hourly rate divides total gross pay by total hours worked.
Step-by-Step Example
Enter hourly rate and hours
Hourly rate: $25.00. Regular threshold: 40 hours. Total hours worked: 52.
Calculate regular pay
40 hours x $25.00 = $1,000.00 regular pay.
Calculate overtime pay
12 overtime hours x $37.50 (1.5x rate) = $450.00 overtime pay.
Review totals
Weekly gross: $1,450.00. Effective rate: $27.88/hr. Annual OT cost (52 weeks): $23,400.
Real-World Use Cases
Payroll Budgeting
Project annual overtime costs for departments or teams to set realistic labor budgets.
Hiring Decision
Compare the cost of overtime for existing employees against hiring an additional worker.
Employee Pay Verification
Workers can verify their pay stubs include the correct overtime rate and hours.
Common Mistakes to Avoid
Miscalculating the regular rate for employees who earn commissions, shift differentials, or non-discretionary bonuses. These must be included in the overtime base rate.
Applying overtime based on daily hours when federal law only requires it after 40 hours per week. However, some states (California, Alaska, Nevada) have daily overtime requirements.
Classifying employees as exempt to avoid overtime without meeting both the salary threshold ($684/week) and duties tests.
Not paying overtime to salaried non-exempt employees. Salary alone does not determine exemption; both salary and duties tests must be met.
Frequently Asked Questions
Accuracy and Disclaimer
This calculator provides estimates based on 2026 federal FLSA rules. State overtime laws may provide greater protections. Consult your state labor department and a payroll professional for compliance guidance.
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