How Overtime Is Calculated
Overtime refers to hours worked beyond the standard workweek, typically 40 hours.
What Is Overtime
Overtime refers to hours worked beyond the standard workweek, typically 40 hours.
FLSA Overtime Rules
Under the U.S. FLSA, covered, nonexempt workers generally receive 1.5× their regular rate for hours over 40 in a workweek. Exemptions and other jurisdictions can produce different rules.
A practical method
Overtime pay starts with three separate facts: the eligible hours, the regular rate used as the base, and the required multiplier. These are determined by the applicable law, contract, or workplace policy. Desmarto's Overtime Calculator separates regular and overtime hours using configured thresholds; it does not calculate pay or decide which rule governs a particular worker or situation.
- Confirm the overtime threshold: Identify whether overtime is based on daily hours, weekly hours, specific days, or another rule.
- Separate regular and overtime hours: Only hours beyond the applicable threshold enter the overtime bucket unless a rule says otherwise.
- Determine the base rate: Check which earnings are included in the regular rate before applying the multiplier.
- Calculate and reconcile: Regular pay = regular hours × regular rate; overtime pay = overtime hours × base rate × multiplier.
Worked example
Using an illustrative weekly threshold of 40 hours, a person with 44 eligible hours, a $20 base rate, and a 1.5 multiplier has $800 regular pay plus $120 overtime pay, for $920 gross before taxes or deductions. A different rule can produce a different split.
Checks, edge cases, and common mistakes
- Do not assume every country or worker uses a 40-hour weekly threshold.
- Do not confuse overtime hours with the overtime premium alone.
- Check whether bonuses or differentials affect the regular-rate calculation.
- Treat the result as an estimate until the applicable legal and contractual rules are confirmed.
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Desmarto Editorial Team
The Desmarto team creates accurate, well-researched content about time, date, and work-hour calculations. Every guide is reviewed for precision and clarity.
Quick reference
Frequently asked questions
How is overtime calculated in the US?
Under FLSA, overtime is 1.5x the regular rate for hours over 40 in a workweek.
What is time and a half?
1.5 times the regular hourly rate. $20/hour becomes $30/hour for overtime.