How to Calculate Overtime Pay

If you work more than 40 hours in a week, federal law in the United States generally requires your employer to pay you overtime at one-and-a-half times your regular hourly rate. But knowing the rule and doing the math on your own paycheck are two different things.

This guide walks through the overtime formula step by step, covers double-time rules, and shows a full worked example so you can check your pay stub with confidence.

The basic overtime formula

For hourly workers, the standard overtime formula is:

The 1.5 multiplier is called "time-and-a-half." Your first 40 hours are paid at your normal rate, and every hour beyond 40 gets the 1.5× premium.

Step-by-step: a full week example

Say you earn $20/hour and worked 48 hours this week:

1. Regular pay: 40 hours × $20 = $800
2. Overtime hours: 48 − 40 = 8 hours
3. Overtime rate: $20 × 1.5 = $30/hour
4. Overtime pay: 8 × $30 = $240
5. Total gross pay: $800 + $240 = $1,040

What about double time?

Some states, union contracts, and company policies pay double time (2×) in special cases — for example, California requires double time after 12 hours in a single day. The formula is the same, just swap the multiplier:

Common mistakes to avoid

• Overtime is weekly, not daily (under federal law) — two 10-hour days do not trigger overtime by themselves.
• Use your regular rate, including most bonuses and shift differentials, not just base pay.
• Salaried does not always mean exempt — many salaried workers under the federal salary threshold still earn overtime.

Frequently asked questions