1.5x (Time and a Half)
2.0x (Double Time)
1.0x (Straight Time)
2.5x (Triple Time)
Calculation Results
Regular Hourly Rate:
$0.00
Overtime Multiplier:
1.5x
Overtime Hourly Rate:
$0.00
Total Overtime Pay:
$0.00
*Based on 0 overtime hours.
How to Calculate Overtime Hourly Rate
Calculating the correct overtime hourly rate is essential for both employers ensuring compliance with labor laws and employees verifying their paychecks. In many jurisdictions, including under the Fair Labor Standards Act (FLSA) in the United States, non-exempt employees are entitled to overtime pay for hours worked beyond 40 in a workweek.
The Standard Formula
The standard overtime rate is often referred to as "time and a half." This means the employee receives their regular hourly wage plus an additional 50% of that wage for every overtime hour worked.
Overtime Rate = Regular Hourly Rate × 1.5
However, depending on company policy, union contracts, or specific state laws (such as working on holidays), the multiplier might be higher, such as Double Time (2.0x).
Step-by-Step Calculation Guide
To determine your overtime rate manually, follow these steps:
- Step 1: Identify the Regular Rate of Pay. This is the standard amount earned per hour before any bonuses or overtime. Example: $20.00/hour.
- Step 2: Determine the Multiplier. Standard overtime is 1.5. Double time is 2.0. Example: 1.5.
- Step 3: Calculate the Overtime Rate. Multiply the Regular Rate by the Multiplier. Example: $20.00 × 1.5 = $30.00/hour.
- Step 4 (Optional): Calculate Total Overtime Pay. Multiply your new Overtime Rate by the actual number of overtime hours worked. If you worked 10 overtime hours: $30.00 × 10 = $300.00.
Example Scenario
Consider an employee named Alex who earns $24.00 per hour. During a busy week, Alex works 45 hours total (40 regular hours + 5 overtime hours).
1. Regular Pay: 40 hours × $24.00 = $960.00
2. Overtime Rate: $24.00 × 1.5 = $36.00 per hour
3. Overtime Pay: 5 hours × $36.00 = $180.00
4. Total Weekly Pay: $960.00 + $180.00 = $1,140.00
Common Overtime Multipliers
- 1.5x (Time and a Half): The federal standard for hours over 40 in a week.
- 2.0x (Double Time): Often applies to holidays, Sundays in some jurisdictions, or excessive daily hours (e.g., over 12 hours in a day in California).
- Weighted Average: If an employee works two different jobs at different rates for the same employer, the overtime rate is calculated based on the weighted average of the regular rates.