Quick Answer: Overtime pay equals your regular rate of pay × 1.5 × your overtime hours. Federally, overtime is any hours worked over 40 in a single workweek. For example, at $22 an hour, 6 overtime hours pay $22 × 1.5 × 6 = $198, on top of your regular 40-hour wages. Some states, including California, also require daily overtime and double time regardless of the weekly total.
This guide from Anchor AI Tools covers the federal formula, a full worked example, how bonuses change your regular rate, and the state rules, such as California’s daily overtime and double time, that can trigger overtime before you even reach 40 hours.
The Overtime Pay Formula
Overtime Pay = Regular Rate of Pay × 1.5 × Overtime HoursOvertime hours are any hours over 40 in a single workweek under federal lawTotal weekly pay is your regular pay for the first 40 hours, plus your overtime pay for every hour after that. The 1.5 multiplier is commonly called time and a half.
Regular pay and overtime pay add together to give total pay for the week.
Step-by-Step: How to Calculate Overtime Pay
- Find your regular rate of pay. Your hourly wage, or your total straight-time earnings (including non-discretionary bonuses) divided by hours worked, if your pay is not a flat hourly rate.
- Total your hours worked for the week. Count every hour actually worked in the fixed, recurring seven-day workweek your employer uses.
- Subtract 40 to find overtime hours. Anything over 40 in that workweek is overtime under federal law, unless your state sets a stricter daily rule.
- Multiply your regular rate by 1.5. This gives your overtime rate per hour, or by 2 for any hours that qualify for double time.
- Multiply the overtime rate by your overtime hours. The result is your overtime pay for the week.
- Add it to your regular pay. Regular pay for the first 40 hours plus overtime pay equals your total pay for the week.
Worked Example
A warehouse worker earns $22 an hour and works 46 hours in one week, with no bonuses and no state daily-overtime rule involved.
| Item | Amount |
|---|---|
| Regular hours (40 × $22.00) | $880.00 |
| Overtime hours worked | 6 |
| Overtime rate ($22.00 × 1.5) | $33.00 |
| Overtime pay (6 × $33.00) | $198.00 |
Calculation
Total weekly pay = $880.00 + $198.00
Total weekly pay: $1,078.00
That $1,078.00 is what this employee is owed for the week, before tax. To estimate take-home pay after federal tax and FICA on a figure like this, try our Payroll Calculator.
Finding Your Regular Rate When You Have Bonuses or Multiple Pay Rates
Your regular rate is not always just your hourly wage. If you earn a non-discretionary bonus or commission, or work at more than one pay rate in the same job, federal law requires a blended rate.
An employee earns $18 an hour, receives a $45 non-discretionary weekly bonus, and works 45 hours.
| Item | Amount |
|---|---|
| Straight-time pay (45 × $18.00) | $810.00 |
| Plus weekly bonus | $45.00 |
| Total straight-time earnings | $855.00 |
| Regular rate ($855.00 ÷ 45) | $19.00 |
| Overtime hours | 5 |
| Overtime premium (0.5 × $19.00 × 5) | $47.50 |
Calculation
Total weekly pay = $855.00 + $47.50
Total weekly pay: $902.50
The $855.00 already covers straight-time pay for all 45 hours, including the 5 overtime hours, so only the extra half-time premium is added on top, not a full 1.5× rate stacked on pay already received.
State Overtime Rules Can Be Stricter Than Federal Law
Federal law only counts hours over 40 in a week. Several states add daily overtime rules that can trigger extra pay on a single long shift, even in a week that never reaches 40 hours.
California requires 1.5× pay for hours 8 through 12 worked in a single day, and double time (2×) for any hours beyond 12 in that day. On an employee’s seventh consecutive day of work in a workweek, the first 8 hours pay 1.5× and anything beyond 8 hours that day pays double time.
An employee earns $25 an hour and works a single 13-hour shift in California.
| Hours | Rate | Amount |
|---|---|---|
| 0 – 8 (straight time) | $25.00 | $200.00 |
| 8 – 12 (1.5×) | $37.50 | $150.00 |
| Over 12 (2× double time) | $50.00 | $50.00 |
Calculation
Day total = $200.00 + $150.00 + $50.00
Day total: $400.00
This daily total applies regardless of how many hours the employee works the rest of that week. Always check your own state’s labor department, since rules vary and change.
Common Mistakes to Avoid
Leaving bonuses out of the regular rate. Non-discretionary bonuses and commissions must be folded into the regular rate before applying the 1.5× multiplier, not paid on top of a plain hourly rate.
Assuming a salary means no overtime. Salaried employees are only exempt if they also meet the duties test and earn at least $684 a week ($35,568 a year) as of 2026. Below that, salaried non-exempt employees still earn overtime.
Offering time off instead of pay. Private-sector employers generally cannot substitute paid time off for overtime pay; it must be paid in cash in the same pay period, with limited exceptions for public-sector employers.
Ignoring stricter state rules. Federal law is a floor, not a ceiling. States including California, Alaska, and Nevada require daily overtime that can apply before an employee reaches 40 hours for the week.
Who Needs to Calculate Overtime Pay
Payroll and HR staff processing weekly or biweekly pay runs, small-business owners without a dedicated payroll department, hourly employees checking whether a paycheck looks right, and salaried employees near the exemption threshold confirming whether they qualify.
Already know your gross pay for the week and want your take-home amount after tax? Try our Payroll Calculator to estimate federal tax and FICA on top of these numbers.
Need your full paycheck after taxes, not just the overtime portion?
Try the Payroll CalculatorFrequently Asked Questions
What is the formula for overtime pay?
Overtime pay equals your regular rate of pay multiplied by 1.5, multiplied by the number of overtime hours worked. Under federal law, overtime hours are any hours over 40 in a single workweek. Some states add daily overtime and double time on top of this federal rule.
Do all employees get paid overtime?
No. Only non-exempt employees qualify. Exempt employees must meet three tests: paid on a salary basis, paid at least $684 a week ($35,568 a year) as of 2026, and their main duties fit an exempt category such as executive or administrative work.
Does overtime pay include bonuses and commissions?
Yes, if they are non-discretionary. Announced bonuses, commissions, and shift differentials must be added into your total earnings before dividing by hours worked to find your regular rate, which raises your overtime rate above your base hourly wage.
What is double time, and when do I get it?
Double time pays twice your regular rate. Federal law does not require it, but California does: after 12 hours worked in a single day, and after 8 hours worked on the seventh consecutive day in a workweek.
Can my employer give me time off instead of overtime pay?
Generally no, if you work for a private employer. Federal law requires non-exempt private-sector employees to be paid overtime in cash in the pay period it was earned. Compensatory time off instead of pay is mainly limited to public-sector employers.
Is overtime pay taxed at a higher rate?
No. Overtime pay is taxed as ordinary income, at the same rates as your regular wages. A paycheck with overtime can have more tax withheld simply because it is larger, but the tax rate itself does not change.
Does working more than 8 hours in a day count as overtime?
Only in some states. Federal law bases overtime purely on a 40-hour workweek, not daily hours. States including California, Alaska, and Nevada require daily overtime after 8 hours worked, regardless of the weekly total.
How do I find my regular rate if I have two different pay rates?
Add your total earnings from both rates for the week, then divide by your total hours worked. That weighted average is your regular rate, and overtime hours are paid at 1.5 times that blended rate, not either rate alone.
Related Free Guides & Tools From Anchor AI Tools
Accuracy Note: This guide explains general federal overtime rules under the Fair Labor Standards Act and California’s daily overtime rules, for planning and educational purposes. Overtime law varies by state and by job duties. Confirm your specific situation with your state labor department, your employer’s payroll team, or a qualified employment attorney before making pay decisions.
Content Lead, Anchor AI Tools, California, USA. Spotted an error? Email hello@anchoraitools.com and it will be checked and corrected. See our editorial standards.