Calculate overtime for hourly workers

Hourly overtime starts with covered nonexempt status and a fixed workweek. Everhour helps teams plan capacity before excess hours build up.

What will your overtime pay be?

Calculate regular and overtime earnings based on your hours and rate. Supports standard time-and-a-half and double-time multipliers.

Total hours including overtime

$

Typically 40h/week

Total pay this period
Regular pay$1,000.00
Overtime pay$300.00
OT hours8h

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Overtime pay basics for hourly work

What this calculation answers

This calculation tells you the gross overtime pay for an hourly worker in one fixed FLSA workweek. For the United States federal baseline, covered nonexempt hourly workers must receive overtime for hours worked over 40 in a workweek at not less than 1.5 times the regular rate of pay.

The result matters when you check payroll, price labor costs, approve timesheets, or compare scheduled hours with actual hours worked. The calculation does not decide exempt status by job title alone. Some hourly workers remain covered and nonexempt, while certain computer employees can be exempt if they meet the duties test and are paid at least $27.63 per hour.

Use the fixed workweek first

The FLSA workweek is a fixed, regularly recurring period of 168 hours: seven consecutive 24-hour periods. It can start on any day and hour, but once set, each workweek stands alone. You cannot average 36 hours in one week with 48 hours in the next week to avoid overtime in the second week.

For hourly workers, the first check is simple: count hours actually worked inside that workweek. Paid vacation, holidays, and other time not worked are not required by the FLSA and generally come from policy, agreement, contract, or state law. More protective state or local wage laws control when they provide the greater benefit.

Apply the overtime formula

For a single-rate hourly worker, start with regular hours, overtime hours, and the regular hourly rate. Example: a covered nonexempt hourly employee works 49 hours in one FLSA workweek at a $23.50 regular rate. The first 40 hours are straight time, and the 9 hours over 40 are overtime hours.

Straight-time pay is 40 × $23.50 = $940.00. The federal overtime rate is $23.50 × 1.5 = $35.25. Overtime pay is 9 × $35.25 = $317.25. Total gross pay for the week is $940.00 + $317.25 = $1,257.25, before taxes, deductions, or any additional policy-based premiums.

Avoid hourly-worker pay mistakes

The most common mistake is counting paid hours instead of hours actually worked. A bona fide meal period, typically 30 minutes or longer, generally does not count as paid work time if the employee is relieved from duty. On-call time is different: an hourly employee required to remain on the employer's premises is working while on call.

Another mistake is using the base rate when the regular rate is different. For nonexempt hourly workers, the regular rate is total workweek compensation, excluding statutory exclusions, divided by total hours actually worked in that workweek. If the worker performs two jobs at different straight-time rates in the same week, use the weighted average regular rate.

When a calculation is enough

A one-off calculation is enough when you have one worker, one rate, one complete workweek, and no dispute over hours worked. It is also enough for a quick payroll check before entering the final number in payroll software. Keep the fixed workweek, covered nonexempt status, and regular-rate inputs visible.

A managed workflow is better when overtime repeats, schedules change, or managers need to prevent overwork before payroll review. Everhour Resource Planning shows member and project timelines, weekly capacity, availability gaps, scheduled time off, and planned-vs-actual time so teams can see pressure before hourly overtime becomes a recurring cost.

This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.

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Frequently Asked Questions

Which hourly workers are covered by federal overtime?

Under the FLSA federal baseline, covered nonexempt hourly workers must receive overtime for hours worked over 40 in a workweek. Blue-collar production, maintenance, construction, and similar manual workers covered by the FLSA are not exempt under Part 541 no matter how highly paid they are. More protective state or local rules can provide greater rights.

Do paid holidays or vacation hours count toward 40 hours?

The FLSA does not require payment for time not worked, including vacations or federal and non-federal holidays. Those benefits are generally set by employer policy, agreement, representative or union contract, or state law. For the federal overtime calculation, count hours actually worked in the fixed workweek unless another applicable rule gives the worker a greater benefit.

How do two hourly jobs in one week change the rate?

If a covered nonexempt employee works two or more jobs at different straight-time rates in one workweek, the regular rate is the weighted average. Add all straight-time earnings for the week, excluding statutory exclusions, then divide by total hours actually worked. Apply 1.5 times that regular rate to hours over 40 unless another valid method or more protective law applies.

When should on-call hours be included?

On-call time counts as hours worked when an hourly employee must remain on the employer's premises. At-home on-call time is usually not hours worked unless the restrictions significantly limit the employee's freedom. This matters because compensable on-call hours can push a covered nonexempt hourly worker above 40 hours in the fixed FLSA workweek.

Can weekend hours be overtime for hourly workers?

The FLSA does not require extra pay merely because work occurs on Saturdays, Sundays, holidays, or regular rest days. Under the federal baseline, overtime is triggered by hours worked over 40 in the workweek for covered nonexempt employees. Weekend or holiday premiums can still be required by state law, contract, policy, or another agreement.

How does Everhour Resource Planning help control overtime before it happens?

Everhour Resource Planning shows visual timelines by member or project, weekly capacity, availability gaps, scheduled time off, and planned-vs-actual time. Managers can compare assigned hours with capacity before the workweek fills up, then adjust staffing before overtime becomes a payroll issue.

How does Everhour support overtime review after hours are worked?

Everhour Overtimes supports daily and weekly overtime limits, 1.5x and 2x tiers, and overtime visibility in Team Hours. Its Payroll dashboard calculates overtime pay and gross pay from employee hourly cost and tracked time after the Overtime app is enabled.

Plan hourly work before payroll

Use Resource Planning to compare assignments, capacity, time off, and actual hours before weekly totals become overtime. Everhour gives managers a clearer path from schedule pressure to payroll-ready review.

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