PRACTICAL GUIDE

How to Calculate Overtime Pay

Separate hours by workweek before applying an overtime multiplier.

Federal weekly overtime example

For many covered nonexempt employees under the Fair Labor Standards Act, federal overtime is at least one and one-half times the regular rate for hours over 40 in a workweek. Coverage, exemptions and the regular rate can require additional analysis.

At $20 per hour for 45 hours, regular pay is 40 × $20 = $800. Overtime pay is 5 × $20 × 1.5 = $150. Estimated gross pay is $950 before taxes and deductions.

  1. Total the completed hours for one defined workweek.
  2. Separate the regular and overtime hours using the applicable threshold.
  3. Multiply each category by the applicable rate and add the estimated gross pay.

Biweekly does not mean an 80-hour threshold

A two-week pay period contains two distinct workweeks. If Week 1 has 45 hours and Week 2 has 35 hours, the arithmetic is 75 regular hours and 5 overtime hours—not 80 regular hours.

WorkTime Hub calculates each week independently and then combines the two summaries.

Regular rate is not always the listed hourly rate

Certain bonuses or other compensation may affect the regular rate used for overtime. The calculator’s hourly-rate field is an estimate input and does not determine the legally required regular rate.

State and policy differences

Some states or agreements may require daily overtime, double time or other premiums. Version 2 intentionally does not claim to calculate California overtime. Separate-hours mode can estimate values when the user already knows the correct regular, overtime and double-time hours.

Use this guide with

Reviewed by the WorkTime Hub editorial teamLast reviewed July 24, 2026 · Examples checked against the calculator test suiteRead our methodology

Frequently asked questions

Does weekend work automatically mean overtime?

Not necessarily under the federal weekly rule; the applicable workweek total and other rules matter.

Does the tool calculate taxes?

No. Results are estimated gross pay before taxes and deductions.

Can I use a custom threshold?

Yes, but you are responsible for entering the threshold applicable to your situation.