Overtime Calculator
Calculate your overtime pay, total gross pay, and see how extra hours affect your earnings. Includes annual projections.
Overtime kicks in after 40 hours under federal FLSA rules.
Earnings Comparison by Hours Worked
Annual Projection (52 weeks)
How Overtime Pay Works
Overtime pay is one of the most important protections for hourly workers in the United States, yet many employees are unsure exactly how it is calculated or whether they qualify. The Fair Labor Standards Act, the federal law that governs overtime, establishes that eligible workers must receive at least one and a half times their regular rate of pay for every hour worked beyond 40 in a single workweek. Understanding these rules helps you verify your paycheck, plan your finances, and make informed decisions about accepting extra shifts.
FLSA Overtime Rules
Under the FLSA, the standard overtime threshold is 40 hours per workweek. A workweek is defined as any fixed and regularly recurring period of 168 hours, which is seven consecutive 24-hour periods. Your employer defines when the workweek starts and ends, and it does not have to align with the calendar week. Hours cannot be averaged across multiple weeks unless you are on a valid alternative work schedule. For example, working 30 hours one week and 50 hours the next does not cancel out the overtime. You are still owed 10 hours of overtime pay for the second week. The minimum overtime rate is 1.5 times your regular hourly rate, though some employers or union contracts pay double time for certain situations such as holidays or hours beyond 12 in a single day.
Exempt vs. Non-Exempt Workers
Not every worker qualifies for overtime. The FLSA divides employees into exempt and non-exempt categories. Non-exempt employees are entitled to overtime pay. Exempt employees, who are generally salaried professionals meeting specific duties tests and earning above a minimum salary threshold, are not entitled to overtime under federal law. Common exempt categories include executive, administrative, professional, computer, and outside sales employees. If you are paid hourly, you are almost always non-exempt and eligible for overtime. If you are salaried, your eligibility depends on your job duties and salary level. Misclassification of employees as exempt when they should be non-exempt is one of the most common wage violations.
Example: 50 Hours at $25/hr
A worker earning $25 per hour who works 50 hours in one week receives 40 hours of regular pay at $25 ($1,000) plus 10 hours of overtime at $37.50 ($375), for a total gross pay of $1,375. Their effective hourly rate for that week is $27.50. Over a full year of 50-hour weeks, they would earn $71,500 gross, compared to $52,000 at a straight 40-hour schedule. That is an additional $19,500 annually from overtime alone.
State Laws That Differ from Federal Rules
Several states have overtime laws that go beyond the federal standard. California is the most notable, requiring overtime pay after 8 hours in a single day, not just after 40 hours in a week. California also mandates double time after 12 hours in a day and after 8 hours on the seventh consecutive day of work. Alaska, Nevada, and Colorado have daily overtime provisions as well. Some states set the overtime threshold lower than 40 hours for certain industries. When state and federal laws conflict, the rule that provides greater protection to the employee applies. Always check your specific state's labor department website for the rules that apply to your situation.
How Overtime Affects Your Taxes
Overtime pay is taxed at the same rate as regular income. It does not get taxed at a higher rate simply because it is overtime. However, because overtime increases your total earnings for the pay period, your employer may withhold a larger percentage of taxes from that paycheck based on tax bracket projections. This sometimes makes it appear that overtime is taxed more heavily, but when you file your annual return, the correct amount is calculated on your total yearly income regardless of how the hours were categorized. The extra withholding is usually refunded if it exceeds what you actually owe.