Small businesses need clean overtime math before payroll closes. Everhour supports approved timesheets for payroll and billing review.
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
The calculator gives you the number — Everhour takes it from there.
One click and you're timing. Start a timer, add an entry, edit the details. This is exactly how it feels in Everhour.
Set a budget, assign rates, and get alerted before you're over.
Measurement
Track your budget through time or costs
Every report you need — configured your way, always up to date.
Tracked hours flow straight into a polished invoice — no copy-paste, no manual math.
For a small business owner, the calculation answers a direct payroll question: how much overtime pay is due to a covered nonexempt employee for one fixed workweek? Under the FLSA federal baseline, covered nonexempt employees must receive at least 1.5 times their regular rate for hours worked over 40 in a workweek.
Coverage matters before the math starts. FLSA enterprise coverage generally applies to businesses with at least two employees and at least $500,000 in annual sales or business done, but individual employees can still be covered when their work regularly involves interstate commerce. More protective state overtime laws can require a higher benefit, so the federal result is the floor, not always the final rule.
Start with hours actually worked, not scheduled hours. The FLSA workweek is a fixed, regularly recurring period of seven consecutive 24-hour periods, and hours may not be averaged across two or more workweeks to avoid overtime. If an employee works 36 hours one week and 46 the next, the second week still has 6 overtime hours.
Small business payroll often goes wrong at classification and pay inputs. Job titles alone do not determine exempt status. For executive, administrative, and professional exemptions, DOL is applying the 2019 rule requiring at least $684 per week on a salary or fee basis plus the applicable duties test after the 2024 final rule was vacated. Additions, deductions, regular rate, straight-time earnings, overtime earnings, and pay-period totals need accurate records.
Use this sequence for a simple hourly case: regular hours are capped at 40, overtime hours are hours over 40, and overtime pay uses at least 1.5 times the regular rate. Example: a covered nonexempt employee at a small retail business works 44 hours in one fixed FLSA workweek at a $22.50 regular hourly rate.
Regular pay is 40 × $22.50 = $900.00. The overtime rate is $22.50 × 1.5 = $33.75. Overtime pay is 4 × $33.75 = $135.00. Total gross pay for the week is $1,035.00 before taxes, deductions, or any separate policy-based premiums. If the employee works at two or more straight-time rates in one workweek, the regular rate is normally the weighted average of all such earnings divided by total hours worked.
A calculator is enough when you need a one-week check for one employee, the employee is clearly covered and nonexempt, the regular rate is simple, and the workweek totals are already correct. It also works for spotting whether weekend, night, or holiday hours actually pushed a covered nonexempt employee over 40 hours, since the FLSA does not require overtime solely for those days or shifts.
A managed workflow is the better answer when payroll depends on employee submissions, manager review, corrections, and locked records. Everhour Timesheets collect weekly project hours and working hours by person, let users submit time for approval, and let admins approve, reject, partially approve, or lock time entries before payroll or billing review.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
High Performer
G2
Summer 2026
Best Ease Of Use
Capterra
Summer 2026
Rated in the top time trackers across G2, Capterra, and TrustRadius — with consistent praise for ease of use, integrations, and support.
No. FLSA coverage depends on the business and the work. Enterprise coverage generally applies when a business has at least two employees and at least $500,000 in annual sales or business done. Even below that threshold, an employee may be individually covered when the work regularly involves interstate commerce. State law can also impose more protective overtime rules.
No. Under the FLSA federal baseline, each fixed workweek stands alone. A small business cannot average 35 hours in one week with 45 hours in the next week to avoid overtime. The 45-hour week has 5 overtime hours for a covered nonexempt employee, even when the pay period covers both weeks.
Covered employers must keep accurate records for nonexempt workers, including hours worked each day, total hours each workweek, pay basis, regular hourly rate, straight-time earnings, overtime earnings, additions or deductions, and pay-period totals. Those records make the calculation defensible when payroll, billing, or a wage claim requires a week-by-week review.
No. The FLSA does not require overtime pay merely because work occurs on Saturdays, Sundays, holidays, nights, or regular days of rest. The federal trigger is hours worked over 40 in the workweek for covered nonexempt employees, unless a state law, employer policy, contract, or union agreement gives the employee a greater benefit.
Misclassification creates the biggest risk because it changes whether overtime is owed at all. A salary, manager title, or office role does not automatically make an employee exempt. For EAP exemptions, the employee must satisfy the applicable duties test and the salary-basis requirement of at least $684 per week under the rule DOL is applying after the 2024 final rule was vacated.
Everhour Timesheets collect weekly project hours and working hours by person, so managers can review time before payroll or billing. Employees can submit time for approval, and admins can approve, reject, partially approve, or lock entries to protect reviewed records from later edits.
Use approved weekly timesheets before payroll closes. Everhour gives small businesses a review path for submitted, corrected, approved, and locked time entries.
14-day free trial · No credit card · Cancel anytime
