How to Calculate Overtime Pay
Calculating overtime pay is straightforward once you know the steps. This guide walks you through every type of overtime calculation — from the standard time and a half formula to California daily overtime and weighted rates for workers with multiple pay rates.
Step 1: Determine Your Hourly Rate
If you are paid hourly, you already know your rate. If you are salaried, convert to an hourly rate using this formula:
Hourly Rate = Annual Salary ÷ 52 weeks ÷ 40 hours
For example, if you earn $50,000 per year:
$50,000 ÷ 52 ÷ 40 = $24.04 per hour
Step 2: Calculate Your Overtime Rate
The standard overtime rate is time and a half (1.5x) your regular hourly rate:
Overtime Rate = Hourly Rate × 1.5
Using $24.00/hr as an example: $24.00 × 1.5 = $36.00/hr
Step 3: Multiply by Overtime Hours
Overtime hours are any hours worked beyond 40 in a workweek (under federal law). Multiply your overtime rate by the number of overtime hours:
Overtime Pay = Overtime Rate × Overtime Hours
$36.00 × 8 overtime hours = $288.00
Step 4: Add Regular Pay + Overtime Pay
Your total weekly pay combines regular and overtime earnings:
Total Pay = (Regular Hours × Hourly Rate) + Overtime Pay
(40 × $24.00) + $288.00 = $960.00 + $288.00 = $1,248.00
| Component | Calculation | Amount |
|---|---|---|
| Regular Pay (40 hrs) | 40 × $24.00 | $960.00 |
| Overtime Rate | $24.00 × 1.5 | $36.00/hr |
| Overtime Pay (8 hrs) | $36.00 × 8 | $288.00 |
| Total Weekly Pay | $960.00 + $288.00 | $1,248.00 |
How to Calculate Double Time
Double time pays 2 times your regular rate. It is required in California for hours worked beyond 12 in a single day and on the 7th consecutive workday after 8 hours.
Double Time Rate = Hourly Rate × 2
At $24.00/hr: $24.00 × 2 = $48.00/hr
If you work 4 hours at double time: $48.00 × 4 = $192.00
How to Calculate Double Time and a Half
Double time and a half pays 2.5 times your regular rate. This rate is most common for holiday work under union contracts or employer policies.
Double Time and a Half Rate = Hourly Rate × 2.5
At $24.00/hr: $24.00 × 2.5 = $60.00/hr
Working 8 hours on a holiday at double time and a half: $60.00 × 8 = $480.00
California Daily Overtime Calculation
California has unique overtime rules based on daily hours worked, in addition to the standard 40-hour weekly threshold:
- Over 8 hours in a day: 1.5x (time and a half)
- Over 12 hours in a day: 2x (double time)
- 7th consecutive workday: First 8 hours at 1.5x, hours beyond 8 at 2x
Example: You earn $20/hr and work a 10-hour day in California.
- First 8 hours: 8 × $20.00 = $160.00 (regular rate)
- Next 2 hours: 2 × $30.00 = $60.00 (time and a half)
- Total for the day: $220.00
Use our California overtime calculator for automatic daily and weekly calculations under CA rules.
Weighted Overtime (Multiple Rates)
If you work at different pay rates during the same workweek, your overtime rate is based on the weighted average of all hours worked:
- Calculate total regular earnings for all hours at all rates
- Divide by total hours worked to get the weighted average rate
- Multiply the weighted average by 0.5 for the overtime premium per hour
Example: You work 30 hours at $18/hr and 15 hours at $22/hr (45 total hours, 5 overtime):
- Total regular earnings: (30 × $18) + (15 × $22) = $540 + $330 = $870
- Weighted average rate: $870 ÷ 45 = $19.33/hr
- Overtime premium: $19.33 × 0.5 = $9.67 per OT hour
- Total overtime pay: 5 × $9.67 = $48.33
- Total pay: $870 + $48.33 = $918.33
Use Our Overtime Calculator
Skip the manual math. Enter your hourly rate, hours worked, and overtime multiplier to get instant results.
Frequently Asked Questions
How do you calculate time and a half?
Multiply your hourly rate by 1.5. For example, $20/hr × 1.5 = $30/hr overtime rate. Then multiply that rate by your overtime hours to find your total overtime pay.
How to calculate overtime for salaried employees?
First, convert your salary to an hourly rate: divide your annual salary by 52 (weeks), then divide by 40 (hours). Apply the 1.5x multiplier to that hourly rate for overtime hours. Example: $52,000 ÷ 52 ÷ 40 = $25/hr, overtime rate = $37.50/hr.
How is overtime calculated in California?
California uses daily overtime in addition to weekly: hours over 8 in a day are paid at 1.5x, hours over 12 in a day are paid at 2x. On the 7th consecutive workday, the first 8 hours are 1.5x and hours beyond 8 are 2x. Use our California overtime calculator for precise calculations.
How to calculate double time and a half?
Multiply your hourly rate by 2.5. For example, $20/hr × 2.5 = $50/hr. This rate is commonly used for holiday work under union contracts or employer policies.