How to Calculate Overtime Pay Rate

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Overtime Pay Rate Calculator

1.5x (Time and a Half) 2.0x (Double Time) 1.0x (Straight Time)
Overtime Hourly Rate: $0.00 / hr
Regular Hours: 0.00
Overtime Hours: 0.00
Regular Pay: $0.00
Overtime Pay: $0.00
Total Gross Pay: $0.00

How to Calculate Overtime Pay Rate

Calculating overtime pay accurately is essential for both employees verifying their paychecks and employers managing payroll compliance. In many jurisdictions, including under the U.S. Fair Labor Standards Act (FLSA), non-exempt employees are entitled to overtime pay for hours worked beyond the standard workweek.

Understanding the Basics

The standard workweek is typically defined as 40 hours. Any hours worked in excess of this threshold during a single workweek are considered overtime hours. The standard overtime rate is usually "time and a half," meaning 1.5 times the employee's regular hourly rate.

The Overtime Rate Formula

To find your specific overtime hourly rate, use the following formula:

Overtime Rate = Regular Hourly Wage × Overtime Multiplier

If your employer pays "time and a half" (1.5x), simply multiply your hourly wage by 1.5.

Step-by-Step Calculation Example

Let's calculate the pay for an employee named Sarah, who earns $24.00 per hour and worked 45 hours in one week.

  • Step 1: Determine the Overtime Rate.
    $24.00 × 1.5 = $36.00 per overtime hour.
  • Step 2: Separate Regular and Overtime Hours.
    Regular Hours = 40
    Overtime Hours = 45 – 40 = 5 hours.
  • Step 3: Calculate Regular Pay.
    40 hours × $24.00 = $960.00.
  • Step 4: Calculate Overtime Pay.
    5 hours × $36.00 = $180.00.
  • Step 5: Calculate Total Gross Pay.
    $960.00 + $180.00 = $1,140.00.

Double Time and Special Circumstances

While federal law typically mandates 1.5x pay for hours over 40, some companies or union contracts offer "Double Time" (2.0x) for work performed on holidays, Sundays, or after working a certain number of consecutive hours. In this case, you would multiply your regular rate by 2.

Weighted Average Overtime

If an employee works two different jobs at different rates within the same company, calculating the overtime rate becomes more complex. You must calculate the "weighted average" of the two rates to determine the base rate upon which the overtime multiplier is applied. This calculator assumes a single hourly rate for the pay period.

function calculateOvertimeRate() { // Get input values var hourlyRateInput = document.getElementById('otHourlyRate'); var totalHoursInput = document.getElementById('otTotalHours'); var thresholdInput = document.getElementById('otThreshold'); var multiplierInput = document.getElementById('otMultiplier'); var hourlyRate = parseFloat(hourlyRateInput.value); var totalHours = parseFloat(totalHoursInput.value); var threshold = parseFloat(thresholdInput.value); var multiplier = parseFloat(multiplierInput.value); // Validation if (isNaN(hourlyRate) || hourlyRate < 0) { alert("Please enter a valid regular hourly wage."); return; } if (isNaN(totalHours) || totalHours < 0) { alert("Please enter valid total hours worked."); return; } if (isNaN(threshold) || threshold threshold) { regularHours = threshold; overtimeHours = totalHours – threshold; } else { regularHours = totalHours; overtimeHours = 0; } // Calculate Pay regularPay = regularHours * hourlyRate; overtimePay = overtimeHours * overtimeRate; totalPay = regularPay + overtimePay; // Update UI document.getElementById('displayOtRate').innerHTML = '$' + overtimeRate.toFixed(2) + ' / hr'; document.getElementById('displayRegHours').innerHTML = regularHours.toFixed(2) + ' hrs'; document.getElementById('displayOtHours').innerHTML = overtimeHours.toFixed(2) + ' hrs'; document.getElementById('displayRegPay').innerHTML = '$' + regularPay.toFixed(2); document.getElementById('displayOtPay').innerHTML = '$' + overtimePay.toFixed(2); document.getElementById('displayTotalPay').innerHTML = '$' + totalPay.toFixed(2); // Show results container document.getElementById('otResult').style.display = 'block'; }

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