Everhour turns approved billable time into invoices, but overtime compensation still starts with the right workweek math.
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
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An overtime compensation calculation answers one practical question: how much extra pay is due when a covered nonexempt employee works more than 40 hours in one fixed FLSA workweek. The workweek is a recurring 168-hour period made of seven consecutive 24-hour periods, and each workweek stands alone. Hours from two weeks cannot be averaged to remove overtime.
The output is the employee's gross pay for that workweek before taxes and deductions. It normally includes straight-time pay for the first 40 hours, overtime pay at not less than 1.5x the regular rate for hours over 40, and any includable compensation that belongs in the regular-rate calculation. More protective state rules, contracts, or policies can require a higher result.
For the United States federal baseline, the FLSA requires covered nonexempt employees to receive overtime pay for hours worked in excess of 40 in a workweek. The rate must be at least time and one-half the employee's regular rate of pay. The regular rate is total compensation for the workweek, excluding statutory exclusions, divided by total hours actually worked in that same workweek.
A common mistake is treating Saturdays, Sundays, holidays, or regular days of rest as automatic federal overtime. The FLSA does not require overtime pay merely because work occurs on those days; the federal trigger is hours over 40 in the workweek unless another law or agreement applies. The FLSA also does not require payment for time not worked, including vacation or holidays, unless policy, contract, state law, or a union agreement creates that benefit.
Start with total hours worked in the fixed workweek. Subtract 40 to find federal overtime hours, then multiply those overtime hours by 1.5x the regular rate. If the regular rate is based only on an hourly wage, the formula is: 40 hours times regular rate, plus overtime hours times regular rate times 1.5. If bonuses or other includable earnings apply, calculate the regular rate first before applying the multiplier.
Example: a covered nonexempt employee works 48 hours in one fixed FLSA workweek at a $26.40 regular rate. The straight-time portion is 40 hours times $26.40, or $1,056. The overtime rate is $26.40 times 1.5, or $39.60. The overtime portion is 8 hours times $39.60, or $316.80. Total gross compensation for the week is $1,372.80.
A calculator is enough when you need a one-time check: one employee, one workweek, one regular rate, and no unresolved state-law, contract, exemption, bonus, or policy question. Use the result to check whether a payroll line roughly matches the expected federal baseline before you review deductions, taxes, or employer-specific earnings codes.
A managed workflow matters when overtime affects billing, payroll review, or client invoices across a team. Approved time entries, locked periods, and clear billable status prevent later edits from changing compensation or invoice amounts. Everhour Billing & Invoicing converts tracked billable time and expenses into invoices, excludes non-billable tasks, and exports invoices to QuickBooks Online, Xero, or FreshBooks.
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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The federal regular rate is total compensation for the workweek, excluding statutory exclusions, divided by total hours actually worked in that workweek. Includable pay changes the regular rate before the 1.5x overtime multiplier is applied. Do not use base hourly wage alone when the employee received other compensation that must be included.
Not necessarily. The FLSA workweek is a fixed and regularly recurring 168-hour period made of seven consecutive 24-hour periods. It may start on any day and at any hour. Once the employer's workweek is set for the employee, overtime is calculated inside that workweek, not by calendar preference.
No. FLSA overtime due to a covered nonexempt employee cannot be waived by employer-employee agreement. Overtime is due on the regular payday for the period worked. Compensatory time off generally cannot replace overtime pay except in special circumstances for state and local government employees.
Only if the exemption actually applies. Standard executive, administrative, and professional exemptions require both job-duties tests and salary-basis pay of at least $684 per week. The computer-employee exemption can use that salary basis or $27.63 per hour, and outside-sales employees qualify under duties and location tests without a salary-level requirement. Job titles alone do not determine exempt status.
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. The federal FLSA rule is the baseline for covered nonexempt employees, not a cap. State daily overtime, double-time tiers, or stricter rules can raise the final compensation.
Everhour Billing & Invoicing converts tracked billable time and expenses into invoices, calculates invoice amounts from rates, and excludes non-billable tasks. Invoice data can be grouped by project, task, person, or date, then exported to QuickBooks Online, Xero, or FreshBooks with invoice status synced back to Everhour.
Everhour Timesheets let managers review weekly project hours and working hours before payroll, billing, or reporting. Submitted time can be approved, rejected, partially approved, and locked, which gives payroll reviewers a cleaner record before overtime compensation is finalized.
Move beyond one-off overtime checks with billable time, non-billable exclusions, invoice grouping, and accounting exports. Everhour connects approved tracked time to client-ready billing.
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