Overtime Pay Calculator
What is Time and a Half?
Time and a half is the increased pay rate that employers are required to pay employees for hours worked beyond the standard work week. In the United States and many other jurisdictions, the Fair Labor Standards Act (FLSA) mandates that covered nonexempt employees receive overtime pay at a rate not less than one and one-half times their regular rate of pay after 40 hours of work in a workweek.
How to Calculate Time and a Half
Calculating your overtime pay involves three simple steps:
- Determine your Overtime Rate: Multiply your standard hourly wage by 1.5.
- Calculate Overtime Hours: Subtract the standard weekly threshold (usually 40 hours) from your total hours worked.
- Calculate Total Pay: Add your regular pay (Standard Hours × Hourly Wage) to your overtime pay (Overtime Hours × Overtime Rate).
The formula for the rate itself is:
Time and a Half Rate = Regular Hourly Wage × 1.5
Calculation Example
Let's look at a realistic example to understand the math better. Suppose your regular hourly wage is $22.00 and you worked 48 hours in a single week.
- Regular Rate: $22.00 / hour
- Overtime Rate: $22.00 × 1.5 = $33.00 / hour
- Regular Pay: 40 hours × $22.00 = $880.00
- Overtime Hours: 48 – 40 = 8 hours
- Overtime Pay: 8 hours × $33.00 = $264.00
- Total Gross Pay: $880.00 + $264.00 = $1,144.00
Double Time vs. Time and a Half
While federal law only mandates time and a half for overtime, some employers or union contracts may offer "Double Time" (2x standard pay) for working on specific holidays or after working an excessive number of consecutive hours. Double time is calculated by multiplying the standard hourly rate by 2.
Who is Eligible?
Most hourly employees are eligible for time and a half pay. However, there are exemptions for certain salaried employees, executive, administrative, and professional employees, as well as outside sales employees. It is important to check your local labor laws or employment contract to confirm your eligibility status.