The federal rule, in one sentence
The Fair Labor Standards Act requires covered, non-exempt employees to be paid at least one and a half times their regular rate for hours worked beyond 40 in a workweek. Everything else — double time, daily overtime, overtime on holidays — is employer policy or state law layered on top.
total = (rate × regular hours) + (rate × multiplier × overtime hours)The premium is the point
The result panel separates the overtime premium — the extra half — from the straight-time value of those hours, because that premium is what the law actually grants you. Eight overtime hours at $20 an hour are worth $160 at straight time; the 1.5× multiplier adds $80 on top.
Worked example · $20/hour, 40 regular + 8 overtime hours
- Regular pay: 40 × $20 = $800.
- Overtime rate: $20 × 1.5 = $30; overtime pay: 8 × $30 = $240.
- Week total: $1,040 — an effective $21.67 an hour across all 48 hours.
What overtime does to the paycheck
Overtime raises gross pay; deductions then take their usual share. There is no separate overtime tax, but a larger weekly amount can push more of the check into withholding. To see the net effect, send your weekly total to the paycheck calculator — the result panel links there with your figure filled in. If you are converting a whole overtime-heavy year into a salary equivalent, start from the hourly to salary calculator instead.
What’s included, and what isn’t
Every figure this calculator produces is an estimate. Here is exactly what it accounts for, and what it does not.
What’s included
- Regular pay and overtime pay for the week, exactly as entered.
- The overtime premium — what the higher rate adds versus straight time.
- Weekly, monthly and annual totals, plus your blended effective hourly rate.
What’s not included
- Taxes and deductions — every figure is gross pay. The paycheck calculator estimates the deductions.
- Exemption status. Salaried executive, administrative and professional roles may not be owed overtime at all.
- State daily-overtime rules (California, for example, requires overtime after 8 hours in a day).
- Bonuses and shift differentials, which can raise the legal regular rate the premium is computed on.
What this calculator assumes
- Overtime is paid on every overtime hour you enter, at the multiplier you choose.
- The FLSA minimum for covered, non-exempt employees is 1.5× the regular rate after 40 hours in a workweek.
- The annual figure assumes this week repeats for 52 weeks — real overtime usually varies.
- Your regular rate is your straight hourly wage. For workers with bonuses or multiple rates, the legal “regular rate” can be higher.
Sources
Every rate and threshold above is transcribed from a primary source and re-checked on the date shown.
Frequently asked questions
What is time and a half?
One and a half times your regular hourly rate. Under the Fair Labor Standards Act, covered non-exempt employees must be paid at least that for every hour beyond 40 in a workweek. At $20 an hour, overtime hours pay $30.
Who is entitled to overtime pay?
Covered, non-exempt employees — which includes most hourly workers. Salaried executive, administrative and professional roles above a salary threshold can be exempt, meaning no federal overtime entitlement at all. Exemption depends on actual job duties, not the job title.
Is overtime taxed at a higher rate?
No. Overtime dollars are ordinary wages and are taxed like the rest of your pay. A bigger paycheck can have proportionally more withheld — because withholding tables annualise each check — but there is no special overtime tax rate. The paycheck calculator shows the withholding on any weekly amount.
When is double time required?
Federal law never requires it — the FLSA minimum is 1.5×. Double time comes from employer policy, union contracts, or state rules; California, for example, requires 2× beyond 12 hours in a single day. The calculator offers both multipliers so you can model your employer's actual policy.
Does my state have its own overtime rules?
Some do. A few states — California most prominently — require daily overtime after 8 hours in a day, on top of the federal weekly rule. This calculator models the federal weekly standard; if your state adds daily overtime, your entitlement can be higher than shown.