How does overtime work

Everhour tracks approved hours and overtime tiers, while FLSA calculations still require the right workweek and regular rate.

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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1
50% of budget used
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Website Redesign14h$150/h$2,100.00
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Marketing Strategy3.5h$150/h$525.00
Total Due$3,675.00
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Overtime pay basics

What this calculation answers

This calculation answers whether hours in a pay period produce overtime pay and how much extra compensation is due. For the United States federal baseline, covered nonexempt employees get overtime after more than 40 hours worked in one fixed FLSA workweek. The workweek is 168 hours, or seven consecutive 24-hour periods, and it can start on any day and hour if it is fixed and recurring.

The result usually gives you regular pay, overtime pay, and total gross pay for the workweek before taxes, deductions, or benefit adjustments. It does not decide employee classification by itself. Exempt status depends on the applicable duties and pay tests, and more protective state law, policy, contract, or union terms can create a larger overtime obligation than the federal baseline.

Use the right workweek

The most common overtime mistake is treating a pay period as the calculation unit. Under the FLSA federal baseline, each workweek stands alone. If a covered nonexempt employee works 50 hours in week one and 30 hours in week two, the employer cannot average those two weeks into 40 hours per week to avoid overtime for week one.

Weekend and holiday work do not create federal overtime merely because of the calendar day. If the Saturday shift pushes total hours over 40 in the fixed workweek, the excess hours count. If the employee works only 38 total hours that week, the FLSA does not require an overtime premium just because some hours fell on Saturday, Sunday, a holiday, or a regular day of rest.

Apply the overtime formula

For a single hourly rate, calculate regular hours first, then overtime hours. Example: a covered nonexempt employee works 46 hours in one fixed FLSA workweek at a $29 regular rate. The first 40 hours pay $1,160. The 6 overtime hours pay $261 because FLSA overtime must be at least 1.5 times the employee's regular rate. Total gross pay is $1,421.

The regular rate is not always the base hourly rate. Under the FLSA federal baseline, the regular rate is total compensation for the workweek, excluding statutory exclusions, divided by total hours actually worked in that workweek. Multiple rates, nondiscretionary bonuses, commissions, and certain other earnings can change the regular rate, so base-wage-only math can understate overtime pay.

When calculation needs workflow

A one-off calculation is enough when you are checking one clean week, one covered nonexempt employee, one hourly rate, and no state, policy, contract, or union premium that changes the answer. It is also enough for a quick estimate before payroll review, as long as the final payroll record still uses the correct workweek, regular rate, and approved hours.

A managed workflow is better when overtime repeats across a team, daily and weekly limits both matter, approvals are required, or payroll needs a clear handoff. Everhour Overtimes supports daily and weekly overtime limits, 1.5x and 2x tiers, Team Hours overtime visibility, and payroll calculations based on employee hourly cost and tracked time.

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

When does federal overtime pay apply?

Under the FLSA federal baseline, covered nonexempt employees must receive overtime pay for hours worked over 40 in a fixed workweek. The overtime rate must be at least 1.5 times the employee's regular rate. The rule applies by workweek, not by pay period, project, month, or schedule pattern.

How is the regular rate different from the hourly rate?

The hourly rate is the wage listed for the employee's time. The regular rate is the FLSA calculation rate for the workweek: total compensation, excluding statutory exclusions, divided by total hours actually worked. If the employee has bonuses, commissions, or multiple pay rates in the same week, the regular rate can differ from the listed hourly rate.

Are paid holidays counted as hours worked for overtime?

The FLSA does not require payment for time not worked, including vacations or federal and non-federal holidays. Paid holiday hours that are not actually worked generally come from employer policy, agreement, state law, or a representative or union contract. For federal overtime, the hours worked in the fixed workweek control the threshold.

What happens when state overtime rules are more generous?

When an employee is covered by both federal and state wage laws, the employee receives the greater benefit or more generous rights under the applicable laws. That means a state daily overtime rule, double-time tier, or other premium can increase the amount owed beyond the FLSA federal baseline.

Can overtime be delayed or exchanged for time off?

FLSA overtime is due on the regular payday for the period worked and cannot be waived by employer-employee agreement. Compensatory time off generally does not satisfy private-sector FLSA overtime obligations, except in special circumstances for state and local government employees. Policy preferences do not replace the covered nonexempt employee's wage right.

How does Everhour calculate overtime for team payroll review?

Everhour Overtimes lets admins set daily and weekly overtime limits, including 1.5x overtime and 2x double-overtime tiers. Team Hours shows overtime visibility, and the Payroll dashboard calculates overtime pay and gross pay from hourly cost and tracked time.

How does Everhour keep overtime hours tied to approved records?

Everhour Timesheets let employees submit weekly project hours or working hours for review before payroll or billing use. Managers can approve, reject, partially approve, and lock submitted time so overtime review is based on approved entries rather than loose spreadsheet totals.

Turn overtime checks into payroll-ready records

Set overtime limits, review Team Hours, and calculate payroll from approved tracked time. Everhour gives teams a clearer overtime workflow from hours worked to gross pay.

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