What is Overtime Pay?

Overtime pay is the additional compensation employees receive for working beyond their regular working hours. In most cases, overtime is calculated at 1.5 times (time and a half) or 2 times (double time) the regular hourly wage, depending on labor laws and company policies.

How to Use the Overtime Pay Calculator

Our Overtime Pay Calculator helps you quickly determine how much extra pay you’ll earn for working overtime. Simply enter:

• Your regular hourly wage
• The number of overtime hours worked
• The overtime pay rate (1.5x, 2x, or custom)

The calculator will instantly show your total overtime earnings and total paycheck amount including overtime.

Understanding Overtime Pay Rates

• Time and a Half (1.5x) – Most common overtime rate. If you earn $20/hour, your overtime rate is $30/hour.
• Double Time (2x) – Used for holidays or excessive overtime. If you earn $20/hour, double-time pay is $40/hour.
• Custom Overtime Rate – Some employers offer different overtime rates based on contracts or labor agreements.

Who is Eligible for Overtime Pay?

Overtime eligibility depends on labor laws in your country or state. In the U.S., the Fair Labor Standards Act (FLSA) requires most non-exempt employees to receive overtime pay for working over 40 hours per week. Some exempt employees, like salaried managers, may not qualify.

Benefits of Calculating Overtime Pay

• Plan Your Budget – Know how much extra income you’ll earn.
• Avoid Underpayment – Ensure you’re paid fairly for extra hours.
• Make Informed Work Decisions – Decide if overtime is worth your time.

Common Questions About Overtime Pay

1. How do I calculate overtime for multiple weeks?

Use the calculator for each week separately, as overtime laws typically apply on a weekly basis.

2. Do part-time workers get overtime pay?

Yes, if they exceed the legal threshold (e.g., 40 hours/week in the U.S.).

3. Does overtime pay affect taxes?

Yes, overtime earnings are taxed like regular wages, possibly increasing tax deductions.

4. How are bonuses/commissions factored into overtime calculations?

Non-discretionary bonuses (e.g., performance incentives) must be included in the regular pay rate for overtime calculations under the FLSA.

5. Are salaried employees entitled to overtime pay?

Salaried employees may be exempt unless they earn below $35,568/year or perform non-managerial tasks (e.g., administrative roles).

6. What’s the difference between exempt vs. non-exempt employees?

Exempt employees (e.g., executives, professionals) are excluded from overtime under FLSA, while non-exempt workers must receive 1.5x pay for >40 hours/week.

7. Do employers have to pay overtime for weekend/holiday work?

No—unless hours exceed 40/week. Weekend/holiday premiums are optional unless mandated by contract.

8. How does overtime work for remote or gig workers?

Non-exempt remote workers qualify for overtime, but gig/contract workers are typically exempt 24.

9. What if my employer refuses to pay overtime?

Document hours and consult an employment lawyer. FLSA violations can lead to back pay, fines, or lawsuits 210.

10. Can overtime hours be ‘banked’ for time off instead of pay?

Illegal in the U.S. under FLSA—overtime must be paid as wages, not comp time.

11. How is overtime calculated for shift workers with varying rates?

Use a weighted average: (Total weekly earnings ÷ Total hours) × 1.5 × Overtime hours.

12. Are there daily overtime limits in certain industries?

Yes. Healthcare uses the 8/80 rule (overtime after 8 hours/day or 80 hours/14 days).

13. Do independent contractors qualify for overtime?

No—contractors are exempt. Misclassification is a common violation; report discrepancies.

Final Thoughts

Knowing your overtime pay helps you make better financial decisions. Use our Overtime Pay Calculator to quickly estimate your extra earnings and ensure fair compensation for your hard work!