Overtime Pay Rate Calculator
Understanding Overtime Pay Rate
Overtime pay is compensation provided to an employee for any hours worked beyond their standard working hours in a given workweek. The specifics of overtime pay are often dictated by labor laws, such as the Fair Labor Standards Act (FLSA) in the United States, which mandates that non-exempt employees receive pay at a rate of at least one and a half times (1.5x) their regular rate of pay for all hours worked over 40 in a workweek.
How Overtime Pay is Calculated:
The calculation is straightforward:
- Determine the Regular Hourly Rate: This is the standard rate of pay for an employee for their regular working hours.
- Identify the Overtime Multiplier: This is typically 1.5 (time-and-a-half), but can sometimes be 2 (double time) depending on company policy or specific regulations for holidays or certain days.
- Calculate the Overtime Hourly Rate: Multiply the regular hourly rate by the overtime multiplier.
Overtime Hourly Rate = Regular Hourly Rate × Overtime Multiplier - Calculate Total Overtime Pay: Multiply the overtime hourly rate by the number of overtime hours worked.
Total Overtime Pay = Overtime Hourly Rate × Overtime Hours Worked
This calculator helps you quickly determine your overtime earnings based on your regular pay rate and the hours you've worked beyond your standard schedule.
Example Calculation:
Let's say an employee has a regular hourly rate of $20.00, works 5 hours of overtime in a week, and their overtime is paid at time-and-a-half (1.5x).
- Regular Hourly Rate: $20.00
- Overtime Multiplier: 1.5
- Overtime Hours Worked: 5
Calculation:
- Overtime Hourly Rate = $20.00 × 1.5 = $30.00
- Total Overtime Pay = $30.00 × 5 hours = $150.00
Therefore, the employee would earn $150.00 in overtime pay for those 5 hours.