Overtime laws explained

Everhour supports resource planning and workload visibility, while overtime law still requires the correct covered nonexempt baseline.

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 rules that affect the calculation

What this calculation answers

An overtime calculation answers a narrow pay question: how much extra pay is due when a covered nonexempt employee works beyond the applicable overtime threshold. For the United States federal baseline under the FLSA, covered nonexempt employees must receive overtime pay for hours worked over 40 in a fixed workweek at not less than 1.5 times the regular rate of pay.

The calculation does not decide every wage issue. Exempt status, state-law coverage, contract terms, and employer policy can change the result before the math starts. The FLSA workweek is a fixed 168-hour period made of seven consecutive 24-hour periods, and each workweek stands alone. Hours cannot be averaged across two or more workweeks to erase overtime.

Rules that change the result

The first legal checkpoint is worker category. The federal overtime baseline applies to covered nonexempt employees, not every worker with a timesheet. Standard executive, administrative, and professional exemptions under DOL Fact Sheet #17A require 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 job titles alone do not decide exemption status.

The second checkpoint is whether another rule gives the employee a greater benefit. Federal law does not create daily overtime, and the FLSA does not require overtime pay merely because work occurs on Saturdays, Sundays, holidays, or regular days of rest. Holiday or vacation pay for time not worked is generally set by agreement, policy, contract, or state law. More protective state wage laws control when they provide greater rights.

How the pay formula works

For a simple federal baseline example, assume a covered nonexempt employee works 49 hours in one fixed FLSA workweek at a $22.80 regular rate. Regular pay covers the first 40 hours: 40 × $22.80 = $912.00. Overtime covers 9 hours over 40 at 1.5 times the regular rate: $22.80 × 1.5 = $34.20, and 9 × $34.20 = $307.80.

The total gross pay for that workweek is $1,219.80 before taxes, deductions, or other payroll adjustments. If the regular rate is not just one hourly wage, calculate it first as total compensation for the workweek, excluding statutory exclusions, divided by total hours actually worked in that workweek. Bonuses, multiple rates, and other includable pay can raise the regular rate and therefore raise the overtime premium.

When a calculator is enough

A one-off calculator is enough when you have one covered nonexempt employee, one fixed workweek, one regular rate, and no state, contract, or policy rule that changes the threshold or multiplier. Use it for checking a pay stub, estimating a correction, or confirming that overtime hours were not averaged away across separate workweeks.

A managed workflow is the better fit when overtime depends on schedules, workload plans, approvals, or recurring payroll review. Everhour Resource Planning gives managers visual timelines, member and project views, weekly capacity, availability gaps, scheduled time off, and planned-vs-actual comparisons. That turns overtime from a last-minute payroll surprise into a capacity signal before hours are worked.

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

What is the federal overtime baseline under the FLSA?

Under the FLSA, covered nonexempt employees must receive overtime pay for hours worked in excess of 40 in a workweek. The overtime rate must be not less than time and one-half the employee's regular rate of pay. The federal baseline uses a fixed 168-hour workweek, not a calendar month or pay period average.

Why does the regular rate matter more than the base hourly rate?

The regular rate is the rate used to price overtime. It is calculated by dividing total compensation for the workweek, excluding statutory exclusions, by total hours actually worked in that workweek. If a covered nonexempt employee has multiple pay rates or includable bonus pay, using only the base hourly rate can understate overtime pay.

Can an employer move hours between workweeks to avoid overtime?

No. Each FLSA workweek stands alone for overtime calculations. Hours may not be averaged over two or more workweeks to avoid overtime. For example, 44 hours in one fixed workweek and 36 hours in the next still creates 4 federal overtime hours in the first workweek for a covered nonexempt employee.

Does holiday pay count as overtime under federal law?

The FLSA does not require payment for time not worked, including vacations or federal or non-federal holidays. Those benefits are generally set by agreement, employer policy, contract, or a representative or union contract. Holiday hours that are not actually worked generally do not create federal overtime hours by themselves.

Which legal rule should be used when federal and state standards differ?

Use the rule that gives the covered employee the greater benefit or more generous rights under the applicable laws. The federal FLSA rule is the baseline, but state wage laws can add daily overtime, higher wage floors, different exemptions, or other protections. The calculation should start only after the controlling rule is identified.

How does Everhour Resource Planning support overtime planning?

Everhour Resource Planning shows workload on visual timelines with member and project views, weekly capacity, availability gaps, and scheduled time off. Managers can compare planned time with actual tracked time, then adjust assignments before repeated over-capacity weeks turn into overtime review problems.

How can Everhour show overtime once hours are tracked?

Everhour Overtimes supports daily and weekly overtime limits, regular, 1.5x overtime, and 2x double overtime tiers. Admins can review overtime in Team Hours, where overtime and double-overtime data are surfaced for payroll and operational review.

Plan overtime before payroll

Use Everhour Resource Planning to compare planned work, weekly capacity, availability, and time off before hours turn into payroll exceptions, giving teams clearer overtime visibility.

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