Overtime rate calculator

Everhour supports approved timesheets and payroll review, while overtime rates still depend on the correct regular-rate calculation.

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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Invoice #1042
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DescriptionHoursRateAmount
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Marketing Strategy3.5h$150/h$525.00
Total Due$3,675.00
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How overtime rates are calculated

What this calculation answers

An overtime rate calculation answers one direct question: what hourly rate applies to overtime hours? Under the United States federal baseline, the FLSA requires covered nonexempt employees to receive at least 1.5 times their regular rate for hours worked over 40 in a fixed workweek. The result is the overtime hourly rate, not the full gross pay for the week.

This matters when you are checking payroll, estimating labor cost, or separating regular and overtime lines on a timesheet. The calculation starts with the regular rate, then applies the overtime multiplier. More protective state rules, employment agreements, or contracts can require a greater benefit, so the federal result is the baseline, not always the final rule.

Start with the regular rate

The regular rate is not always the employee's base hourly wage. Under the FLSA, the regular rate is total compensation for the workweek, excluding statutory exclusions, divided by total hours actually worked in that workweek. For a simple hourly employee with no extra included pay, the regular rate and base hourly wage are the same.

Problems appear when payroll uses the base wage only and ignores compensation that belongs in the regular-rate calculation. Multiple pay rates, nondiscretionary bonuses, shift differentials, or other included earnings can change the regular rate before the 1.5 multiplier is applied. The overtime rate is only as accurate as the regular rate used to produce it.

Apply the overtime multiplier

For a simple hourly case, assume a covered nonexempt employee works 47 hours in one fixed FLSA workweek at a $24.80 regular rate. The federal overtime rate is $24.80 × 1.5 = $37.20. The employee has 7 overtime hours because 47 − 40 = 7. Overtime pay for those hours is 7 × $37.20 = $260.40.

Straight-time pay for the first 40 hours is 40 × $24.80 = $992.00. Total gross pay for the week is $992.00 + $260.40 = $1,252.40 before taxes, deductions, or other payroll adjustments. Do not average two workweeks together; each FLSA workweek stands alone for overtime calculations.

Watch the threshold rule

The FLSA workweek is a fixed and regularly recurring period of 168 hours, made of seven consecutive 24-hour periods. It can start on any day and hour, but once set, it controls the weekly overtime count. Federal law does not create daily overtime just because an employee works more than 8 hours in one day.

Weekend or holiday work also does not create federal overtime premium pay by itself. Under the federal baseline, the trigger is hours worked over 40 in the workweek unless a more protective state law, employer policy, contract, or agreement applies. Holiday or vacation pay for time not worked is generally set outside the FLSA.

Use one-off math or approvals

A one-off overtime rate calculation is enough when you need to check a single weekly result, test a payroll line, or estimate the cost of extra hours before scheduling. It works best when the regular rate is clear, the workweek is fixed, and no state-specific daily overtime, double-time tier, or contract premium changes the answer.

A managed workflow is better when overtime affects payroll, billing, or approvals every pay period. Everhour Timesheets collect weekly project and working hours, let users submit time for approval, and allow admins to approve, reject, partially approve, and lock entries before payroll or billing review. That creates a record behind the overtime number.

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 difference between regular rate and overtime rate?

The regular rate is the hourly rate used as the base for overtime. Under the FLSA, it equals total compensation for the workweek, excluding statutory exclusions, divided by total hours actually worked in that workweek. The overtime rate is at least 1.5 times that regular rate for covered nonexempt employees' hours worked over 40 in the workweek.

When does the federal overtime rate apply?

The federal overtime rate applies when a covered nonexempt employee works more than 40 hours in a fixed FLSA workweek. The workweek is 168 hours, or seven consecutive 24-hour periods. Federal law does not allow averaging hours across two or more workweeks to avoid overtime.

Can an employee agree to skip overtime pay?

No. FLSA overtime for covered nonexempt employees 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.

Does an exemption remove the overtime rate calculation?

Yes, when the employee is properly exempt. Standard executive, administrative, and professional exemptions require 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. Job titles alone do not determine exempt status.

What mistake changes the overtime rate most often?

The common mistake is multiplying the base hourly wage by 1.5 when the regular rate is different. The regular rate can include more than the base wage, depending on the compensation paid in that workweek and the statutory exclusions. If the regular rate is wrong, every overtime-hour amount is wrong.

How does Everhour support overtime payroll review?

Everhour Timesheets collect weekly project hours and working hours so managers can review time before payroll or billing. Users submit time for approval, and admins can approve, reject, partially approve, and lock submitted or approved entries to protect the reviewed record.

Can Everhour show overtime hours before payroll?

Everhour Overtimes can identify daily or weekly overtime from configured limits and show overtime hours in Team Hours. Admins can review regular, 1.5x overtime, and 2x double-overtime data before using payroll calculations based on hourly cost and tracked time.

Turn overtime math into approvals

Move recurring overtime review into submitted, approved, and locked timesheets. Everhour gives managers a payroll-ready record behind each overtime calculation.

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