Overtime threshold calculator

Everhour supports approved timesheets and payroll review, while overtime thresholds still require the correct workweek rule.

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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50% of budget used
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Invoice #1042
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Marketing Strategy3.5h$150/h$525.00
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How overtime thresholds work

What this calculation answers

An overtime threshold calculation answers a narrow payroll question: how many hours in a fixed workweek cross the rule that creates overtime pay. Under 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 threshold is not a daily total under federal law.

The same calculation also helps prevent two common mistakes: averaging two workweeks together and counting paid time off as hours worked. Each FLSA workweek stands alone. The workweek is a fixed and regularly recurring period of 168 hours, or seven consecutive 24-hour periods, and it may start on any day and hour.

Set the right threshold first

Start by identifying the rule that applies before doing the math. For the federal baseline, the threshold is hours worked over 40 in one fixed workweek for covered nonexempt employees. The FLSA does not require overtime pay merely because work occurs on Saturdays, Sundays, holidays, or regular days of rest.

State law, a union contract, or an employer policy can create a more generous rule. When an employee is covered by both federal and state wage laws, the employee is entitled to the greater benefit or more generous rights provided under the applicable laws. That means a threshold calculator should use the rule that actually governs the worker, not just the broad federal default.

Calculate pay over the threshold

For a simple hourly case, assume a covered nonexempt employee works 44 hours in one fixed FLSA workweek at a $31.20 regular rate. The first 40 hours are paid at straight time: 40 × $31.20 = $1,248.00. The 4 hours over the federal weekly threshold are paid at not less than 1.5× the regular rate: 4 × $46.80 = $187.20.

Total gross pay for that workweek is $1,435.20 before taxes, deductions, or other payroll items. If the employee has includable bonuses, commissions, or multiple rates in the same workweek, calculate the regular rate as total compensation for the workweek, excluding statutory exclusions, divided by total hours actually worked in that workweek.

When a calculator is enough

A one-off calculator is enough when you are checking one fixed workweek, one worker classification, and one clear threshold. It is also enough for a fast reasonableness check on a payroll line, as long as you already know the worker is covered and nonexempt and the correct jurisdictional rule has been selected.

A managed workflow is better when overtime has to be reviewed before payroll or billing. Everhour Timesheets collect weekly project and working hours, let users submit time for approval, and let admins approve, reject, partially approve, or lock time entries before the numbers move into 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 threshold creates overtime under the FLSA federal baseline?

Under the FLSA federal baseline, covered nonexempt employees must receive overtime pay for hours worked in excess of 40 in a fixed workweek. The overtime rate must be not less than 1.5× the employee's regular rate of pay. More protective state laws, contracts, or policies can create a different or more generous threshold.

Does a workweek have to match the calendar week?

No. An FLSA workweek is a fixed and regularly recurring period of 168 hours, made up of seven consecutive 24-hour periods. It can start on any day and hour. Once set, each workweek stands alone for overtime calculations, so hours from two different workweeks cannot be averaged together to avoid overtime.

Do weekend or holiday hours cross the threshold automatically?

No. The FLSA does not require overtime pay merely because work occurs on Saturdays, Sundays, holidays, or regular days of rest. Under the federal baseline, the trigger is hours worked over 40 in the workweek unless another law, employer policy, contract, or union agreement provides a more generous rule.

Should vacation or holiday pay count toward hours worked?

The FLSA does not require payment for time not worked, including vacation or federal and non-federal holidays. Those benefits are generally set by employer policy, agreement, or a representative or union contract. For federal overtime under the FLSA, the threshold is based on hours actually worked in the workweek.

Can an employee agree to skip overtime after crossing the threshold?

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

How does Everhour support overtime threshold 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, or lock entries so the reviewed hours stay protected from later edits.

How can Everhour show overtime hours after review?

Everhour Overtimes can apply daily or weekly overtime limits and show overtime in Team Hours. Admins can review regular, 1.5× overtime, and 2× double overtime hours before using the Payroll dashboard to calculate overtime pay and gross pay from hourly cost and tracked time.

Approve overtime before payroll

Use approved weekly timesheets before manual overtime math becomes payroll cleanup. Everhour keeps submitted hours reviewable, approved, and locked for a cleaner handoff to payroll review.

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