How to Calculate Overtime Pay: Time-and-a-Half Math
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How to Calculate Overtime Pay (Step-by-Step for Hourly Workers)

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Learn how to calculate overtime pay.

Anúncios

Find your regular rate, count OT hours, do the time-and-a-half math, and check special cases (night shift, bonuses, tips).

Includes easy formulas, worked examples, a worksheet, and FAQs.

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How to Calculate Overtime Pay

Short answer: In most U.S. jobs, you earn time-and-a-half (1.5× your regular rate) for every hour worked over 40 in your company’s workweek.

Some workplaces also pay extra for holidays or Sundays, but that’s an employer/contract policy, not a federal rule.

Your regular rate can be more than your base wage if you receive things like shift differentials or nondiscretionary bonuses—and that changes the overtime math.

This guide is written for real life on the shop floor: quick, plain English, with copy-and-use formulas and examples.

By the end, you’ll know exactly how to ballpark your next paycheck and spot common mistakes on your stub.

Friendly note: This is educational information, not legal advice. Rules can vary by state, city, and union contract. When in doubt, ask HR and your state labor agency.

The 5-Step Overtime Method

(you can do it on your phone)

Step 1 — Lock the workweek

Your employer sets a fixed 7-day, 168-hour workweek (for example, Sun–Sat or Mon–Sun).

Overtime is calculated inside that repeating box—not per pay period and not per calendar month. Write your workweek at the top of a note.

Example: “My workweek = Sunday 12:00 a.m. to Saturday 11:59 p.m.”

Step 2 — Count hours worked

Add up every minute you actually work: pre-shift tasks your boss requires, putting on PPE if it’s required on site, short rest breaks if they’re paid, and the shift itself. Don’t include unpaid meal breaks where you’re fully off duty. Put each day’s total on your note.

Tip: Take photos of the time clock if your hours often get changed. Keep your own log.

Step 3 — Find your regular rate

If you’re straight hourly with no extras, your regular rate is your hourly wage. If you get non-hourly extras, your regular rate might be higher:

  • Shift differential (e.g., +$1.00/hr nights) → included.
  • Nondiscretionary bonus (attendance, production, guaranteed incentives) → included for the week it covers.
  • Piecework/commissions → included; divide total pay by total hours.
  • Tipped work → special rules; see “Tipped example” below.
  • Discretionary bonus (truly at employer’s sole discretion, not promised) → usually excluded from regular rate.

Quick formula (weekly regular rate):

Regular Rate=All pay that counts for the weekTotal hours worked in the week\textbf{Regular Rate}=\frac{\text{All pay that counts for the week}}{\text{Total hours worked in the week}}

If you’re hourly with no extras, you can skip the fraction and just use your posted hourly wage.

Step 4 — Mark the overtime hours

If your total is > 40, the hours above 40 are overtime for that week.

  • Example: You worked 46 hours. Overtime hours = 6.

Some states add extra rules (like daily overtime after 8 hours/day). If you’re in one of those states, follow the stricter rule. Otherwise, the federal 40-hour rule is the baseline.

Step 5 — Do the time-and-a-half math

There are two equivalent ways to think about the money:

Simple view (most hourly jobs):

Overtime Pay=OT Hours×(1.5×Regular Rate)\textbf{Overtime Pay} = \text{OT Hours} \times (1.5 \times \text{Regular Rate})

“Add-the-premium” view (especially if you’re hourly and already paid straight time for all hours):

OT Premium=OT Hours×(0.5×Regular Rate)\textbf{OT Premium} = \text{OT Hours} \times (0.5 \times \text{Regular Rate})

Then your Total Pay = Straight-time pay for all hours + OT Premium.

Both land in the same place if your regular rate is correct.

How to Calculate Overtime Pay

Fast Examples (copy the one that matches you)

Example 1 — Straight hourly, simple week

  • Base: $18.00/hr
  • Hours: 46 (Mon–Sat) → 6 OT hours
  • Pay:
    • Straight time: 40 × $18.00 = $720.00
    • OT premium: 6 × (0.5 × $18.00) = 6 × $9.00 = $54.00
    • Total: $720.00 + $54.00 = $774.00
      (Same as 6 × $27.00 for OT hours if you prefer the 1.5× view.)

Example 2 — Night shift differential

  • Base: $17.00/hr
  • Night differential: +$1.00/hr for 20 night hours
  • Hours: 45 total (20 night, 25 day) → 5 OT hours
  • Regular rate:
    • Straight pay before OT: (25 × $17) + (20 × $18) = $425 + $360 = $785
    • Regular rate = $785 ÷ 45 = $17.44
  • Overtime premium: 5 × (0.5 × $17.44) = 5 × $8.72 = $43.60
  • Total: $785 + $43.60 = $828.60

Example 3 — Weekly production bonus (nondiscretionary)

  • Base: $20.00/hr
  • Hours: 44 → 4 OT hours
  • Bonus: $60 (for hitting a target this week)
  • Regular rate:
    • Straight pay: 44 × $20 = $880
    • Add bonus: $880 + $60 = $940
    • Regular rate = $940 ÷ 44 = $21.36
  • Overtime premium: 4 × (0.5 × $21.36) = 4 × $10.68 = $42.72
  • Total: $940 + $42.72 = $982.72

Example 4 — Piecework/commission

  • Total earnings (before OT) this week: $900
  • Hours: 48 → 8 OT hours
  • Regular rate: $900 ÷ 48 = $18.75
  • OT premium: 8 × (0.5 × $18.75) = 8 × $9.375 = $75.00
  • Total: $900 + $75 = $975

Example 5 — Tipped (quick illustration)

Tip rules vary by state; this is a federal-baseline style example.

  • Cash wage paid by employer: $2.13/hr (federal tipped minimum)
  • Assume you meet minimum wage after tips
  • Hours: 43 → 3 OT hours
  • Overtime math (federal baseline concept):
    • Overtime rate is 1.5 × the minimum wage for your area, and the employer can still take a tip credit (up to the allowed amount).
    • If using the federal $7.25 minimum, 1.5 × $7.25 = $10.875.
    • Subtract the tip credit (up to $5.12 federally) → $5.755 cash wage for each OT hour (plus your tips).
    • Your total cash wages are: straight-time cash wages for all hours + $5.755 × 3 for the OT hours.
      Check your state’s higher minimum/tip credit; many states require more.

Common “gotchas” that change your regular rate

  • Nondiscretionary bonuses (attendance, production, promised incentives) count toward the regular rate. If you earned them this week, they usually raise this week’s regular rate—so your OT premium rises too.
  • Shift differentials and hazard pay count.
  • Per-diem that acts like wages can count; true reimbursements generally don’t.
  • Paid holiday or vacation pay typically doesn’t create overtime because it’s not “hours worked.” Check policy language on how it appears on the stub.
  • Changing rates within the week: If you worked at $18/hr for two days and $20/hr for three days (or different jobs), you may need a weighted average to get the regular rate.

What doesn’t automatically create overtime

  • Holidays, weekends, and nights by themselves don’t trigger federal overtime—only the weekly hours over 40 do. An employer can choose to pay a holiday premium (1.5× or 2×), but that’s a policy/contract, not the federal baseline.
  • Missed lunch: If your lunch is unpaid but you worked through it, those minutes are hours worked and can push you over 40. Keep notes and tell your manager/HR so it gets fixed.
  • Travel time: Some travel is paid time (like required travel between worksites inside the day). Commuting from home to work usually isn’t. Ask your manager which travel hours count.

The Overtime Worksheet (screenshoot this)

  1. Workweek: __________________________
  2. Daily hours (Mon–Sun): __ / __ / __ / __ / __ / __ / __
  3. Total hours: ________ → OT hours = max(0, Total − 40) = ________
  4. Does your pay include extras this week?
    • Night/shift diff: $____ × ___ hours = $_____
    • Nondiscretionary bonus/commission/piece: $_____
  5. Regular rate:
    • If plain hourly: $________
    • If extras: (All pay that counts ÷ Total hours) = $________
  6. Overtime premium: OT hours × 0.5 × Regular rate = $________
  7. Total weekly pay (estimate): Straight-time pay + OT premium = $________

Pro move: Keep this worksheet in your Notes app and duplicate it each week.

How to read your pay stub for overtime

Look for lines like “OT,” “Overtime,” “1.5×,” or codes your company uses. You should see:

  • Hours at regular rate (up to 40)
  • Hours at OT rate (over 40) or a separate OT premium line
  • Any differentials or bonuses (either as a rate bump or a separate line)

If something’s off:

  1. Compare timeclock punches with your worksheet.
  2. Email HR/payroll with dates, shifts, and your math (be polite and specific).
  3. Keep all replies. If it doesn’t resolve, consider your state labor agency.

FAQ (quick answers you can quote)

Do I get overtime after 8 hours in a day?
Only in some states or under certain contracts. Federally, it’s after 40 hours in a workweek.

Is double time a law?
No. Double time is an employer/contract perk unless your state or contract says otherwise.

Do paid holidays count toward the 40 hours?
Usually no—they’re not “hours worked.” But if you also worked enough hours to exceed 40, overtime still applies to the work hours above 40.

My manager told me not to clock OT but still finish the job.
Working off the clock is a red flag. Log your time and escalate politely. You must be paid for all hours you’re permitted or required to work.

I switched roles mid-week with different rates. How do I compute overtime?
Use a weighted average regular rate across all hours and pays for that week, then apply the OT premium to hours above 40.

I’m tipped—how do I know my OT is right?
Ask payroll how they compute the cash wage for OT hours using the applicable minimum wage and tip credit. Many states require higher amounts than the federal baseline.

Extra: Weighted-Average Example (multiple rates in one week)

  • Mon–Tue: 16 hours @ $18/hr = $288
  • Wed–Fri: 24 hours @ $21/hr = $504
  • Sat: 6 hours @ $21/hr (now you’re at 46 hours total → 6 OT)
  • Straight-time pay (all 46 hours): $288 + $504 + (6 × $21) = $288 + $504 + $126 = $918
  • Regular rate: $918 ÷ 46 = $19.96
  • OT premium: 6 × (0.5 × $19.96) = 6 × $9.98 = $59.88
  • Total: $918 + $59.88 = $977.88

Notice how we paid straight time for all 46 hours at the rates you actually earned, and then added a 0.5× premium for the 6 OT hours, based on the weighted regular rate.

Bonus: Simple OT Calculator Logic (so you can sanity-check any app)

If you’re building a spreadsheet or using a calculator:

  1. Input: hours per day, base rates, any differentials, and bonuses that count.
  2. Compute straight-time pay for each block of hours at the rate actually earned.
  3. Sum total hours and total straight-time pay.
  4. Regular rate = Total straight-time pay + included bonuses ÷ Total hours.
  5. OT hours = max(0, Total hours − 40) (plus any daily OT if your state/contract requires).
  6. OT premium = OT hours × 0.5 × Regular rate.
  7. Total pay = Straight-time pay + bonuses + OT premium.

That’s it. No mystery, just careful addition and one multiplication.

Real-World Playbook (what to do this week)

  • Before your shift: Open your phone note and write the workweek.
  • Each day: Log start, stop, and unpaid meal (if any).
  • Friday night/Saturday: Total your hours. If > 40, highlight the OT hours.
  • Do the math: Use the worksheet above (1 minute).
  • Snapshot: Take a photo of the result so you can compare to the stub.
  • On payday: Match lines and hours. If something’s off, email HR/payroll the same day with your clean bullet-point math.

Important reminders (so you keep every dollar)

  • Your regular rate can be higher than your base wage. If you earned a nondiscretionary bonus this week, your OT premium should increase.
  • Night/shift/hazard differentials count toward the regular rate.
  • Paid time off doesn’t create overtime, but your work hours over 40 still do.
  • Holiday or Sunday premiums are policy/contract items—not automatic from federal law.
  • Keep your own records. You are the best witness for your time.

Wrap-Up (and your next step)

Overtime becomes simple when you follow the same rhythm every week:

  1. Fix the workweek → 2) Count hours worked → 3) Find the regular rate → 4) Mark hours over 40 → 5) Add the 0.5× premium (or pay 1.5× for those hours).

Want to check the numbers faster? Use our Overtime & Holiday Pay Calculator: plug in hours, rate, and any extras (differentials/bonuses) and it will show your regular rate, OT premium, and total in seconds. Then compare to your stub and keep the difference.