Overtime pay formula

Everhour embeds time tracking in project tools, while the formula still depends on covered nonexempt hours.

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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Acme Web Project
1
50% of budget used
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$2,500.00 remaining
75%
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Your Company LLChello@yourcompany.com
INVOICE
Invoice #1042
Group by:
DescriptionHoursRateAmount
Website Redesign14h$150/h$2,100.00
Brand Guidelines7h$150/h$1,050.00
Marketing Strategy3.5h$150/h$525.00
Total Due$3,675.00
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How overtime pay is calculated

What this calculation answers

The formula answers a payroll question: how much extra pay is due when a covered nonexempt employee works more than 40 hours in one fixed FLSA workweek. The federal baseline uses a 168-hour workweek made of seven consecutive 24-hour periods. Each workweek stands alone, so 35 hours in one week and 45 hours in the next cannot be averaged into two 40-hour weeks.

The output is usually three figures: regular straight-time pay, overtime pay at not less than 1.5x the regular rate, and gross pay for the workweek. The calculation does not decide exempt status by job title. Under the federal EAP exemptions, job duties and salary-basis rules matter, including the $684 per week salary level where that salary test applies.

Use the regular rate correctly

The regular rate is not always the employee's base hourly wage. Under the federal baseline, the regular rate is total compensation for the workweek, excluding statutory exclusions, divided by total hours actually worked in that workweek. That matters when the week includes nondiscretionary bonuses, shift differentials, commissions, or multiple hourly rates.

A common mistake is multiplying overtime hours by 1.5x the lowest hourly rate worked that week. If a covered nonexempt employee earns two rates in the same workweek, or receives includable extra compensation, calculate the regular rate first. The formula starts with the workweek's pay and hours, not with a convenient rate pulled from one shift.

Apply the weekly formula

For a simple hourly case, assume a covered nonexempt employee works 47 hours in one fixed FLSA workweek at a $24.80 regular hourly rate. Regular hours are capped at 40 for the federal weekly overtime calculation. The remaining 7 hours are overtime hours, paid at not less than 1.5x the regular rate.

The math is: 40 regular hours times $24.80 equals $992.00. The overtime rate is $24.80 times 1.5, or $37.20. Seven overtime hours times $37.20 equals $260.40. Total gross pay for the workweek is $1,252.40. More protective state rules, contracts, or policies can require a greater benefit than this federal baseline.

When a calculator is enough

A one-off formula check is enough when you know the worker is covered and nonexempt, the workweek is fixed, the hours worked are final, and the regular rate is simple. It is also enough for spotting obvious payroll errors, such as paying 47 hours at straight time or averaging two workweeks together.

A managed workflow is better when overtime depends on approved time records, task-level tracking, daily or weekly review, or payroll handoff. Everhour can place tracking controls inside tools such as Asana, ClickUp, Jira, GitHub, Monday, Notion, Trello, and others, so tracked project and task time flows into timesheets, budgets, and reports before payroll review.

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 pay formula?

For the United States federal baseline, covered nonexempt employees must receive at least 1.5x their regular rate for hours worked over 40 in a fixed 168-hour FLSA workweek. The basic formula is regular pay for the first 40 hours plus overtime hours multiplied by 1.5x the regular rate.

How do you calculate the regular rate before overtime?

Divide total compensation for the workweek, excluding statutory exclusions, by total hours actually worked in that same workweek. Use that regular rate for the overtime premium calculation. This step is especially important when the employee has multiple hourly rates, nondiscretionary bonuses, shift differentials, or other includable compensation in the week.

Can overtime be avoided by moving hours between weeks?

No. Under the FLSA, each workweek stands alone for overtime calculations. Hours cannot be averaged over two or more workweeks to avoid overtime. If a covered nonexempt employee works 46 hours in one fixed workweek, the 6 hours over 40 require overtime pay under the federal baseline.

Does the formula add premium pay for holidays or weekends?

Not by itself under federal law. The FLSA does not require overtime pay merely because work occurs on Saturdays, Sundays, holidays, or regular days of rest. The federal trigger is hours worked over 40 in the workweek, unless a more protective state law, employer policy, contract, or union agreement applies.

Can an employee waive overtime pay?

No. FLSA overtime due to a covered nonexempt employee cannot be waived by an employer-employee agreement. Overtime pay is due on the regular payday for the period worked. Compensatory time off generally does not replace overtime pay, except in special circumstances for state and local government employees.

How does Everhour connect overtime tracking to work tools?

Everhour embeds time tracking controls inside supported project tools such as Asana, ClickUp, Jira, GitHub, Monday, Notion, Trello, and others. Project and task metadata sync into Everhour, so overtime review can start from the same work records employees already use.

Turn overtime math into records

Track approved hours where work happens, then use Everhour integrations to move project and task time into timesheets, budgets, and reports for cleaner overtime review.

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