What is overtime pay

Everhour supports approved timesheets, while overtime pay still depends on the governing workweek, regular rate, and worker status.

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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How overtime pay works

What this calculation answers

Overtime pay is extra pay owed when a covered nonexempt employee works more than the applicable overtime threshold. Under the FLSA federal baseline, that threshold is hours worked over 40 in one fixed workweek, and the overtime rate is at least 1.5 times the employee's regular rate. The result answers how much premium pay belongs on the paycheck for that workweek.

The calculation matters for payroll review, pay stub checks, job-costing, and billing decisions when labor hours rise above planned levels. It also prevents a common mistake: treating every long day, weekend shift, or holiday shift as federal overtime. The FLSA does not require overtime pay merely because work occurs on Saturdays, Sundays, holidays, or regular days of rest.

Use the correct workweek

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, each FLSA workweek stands alone for overtime calculations. Hours may not be averaged over two or more workweeks to avoid overtime owed under the federal baseline.

For example, 36 hours in week one and 44 hours in week two do not average to 40 hours for both weeks. Week one has no federal overtime under the FLSA baseline. Week two has 4 overtime hours for a covered nonexempt employee, unless a more protective state rule, policy, contract, or other applicable law gives the employee greater rights.

Calculate the overtime amount

For a simple hourly case, assume a covered nonexempt employee works 49 hours in one fixed FLSA workweek at a $25.20 regular hourly rate. The first 40 hours are paid at $25.20, which equals $1,008.00. The 9 overtime hours are paid at 1.5 times $25.20, or $37.80 per overtime hour.

The overtime pay is 9 × $37.80 = $340.20. Total gross pay for that workweek is $1,008.00 + $340.20 = $1,348.20. For non-hourly pay, multiple rates, or certain bonuses, the regular rate is calculated 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 have one employee, one fixed workweek, clear hours worked, and a known regular rate. It is also enough for a fast pay stub check when you only need to verify the overtime line. The answer is less reliable when entries are missing, late edits exist, or the regular rate includes pay beyond a base hourly wage.

A managed workflow is better when overtime affects payroll approval, client billing, or recurring team review. Everhour Timesheets collect weekly project hours and working hours by person, let users submit time for approval, and let admins approve, reject, partially approve, or lock time entries before payroll or billing uses them.

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 does overtime pay mean under the FLSA federal baseline?

Under the FLSA federal baseline, overtime pay is pay of at least 1.5 times the regular rate for hours worked over 40 in a fixed workweek by covered nonexempt employees. The rule applies to hours worked, not to the length of the pay period or the label on the job.

Is paid vacation included in hours worked for overtime?

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

Can an employer avoid overtime by changing the pay period?

No. Under the FLSA, each fixed workweek stands alone, and hours may not be averaged across two or more workweeks to avoid overtime. A biweekly, semimonthly, or monthly payroll schedule does not erase overtime owed for hours worked over 40 in a covered nonexempt employee's FLSA workweek.

Does a salary automatically remove overtime rights?

No. Job titles alone do not determine exempt status, and salary alone is not enough for the standard executive, administrative, and professional exemptions. Those exemptions 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.

Can state law change the overtime result?

Yes. 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. More protective state rules can add daily overtime, different thresholds, or other requirements beyond the FLSA federal baseline.

How do Everhour Timesheets support overtime review?

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

Review overtime before payroll

Use approved weekly timesheets before payroll or billing decisions. Everhour keeps submitted hours reviewable, correctable, and locked after approval, giving teams a cleaner overtime record.

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