How is overtime pay calculated?
Federal law counts overtime by the workweek: a fixed, recurring run of seven days, 168 hours in a row, that your employer sets. Each workweek stands on its own, so an employer who pays every two weeks cannot average 30 hours in one week against 50 in the next. The 50-hour week still has 10 overtime hours.
Overtime pay = overtime hours × regular rate × 1.5
Weekly pay = regular hours × regular rate + overtime pay
- Regular rate: usually your hourly rate, but shift differentials and bonuses promised for hours or output are added in, which raises the overtime rate.
- Hours worked: time you actually work. Paid holidays, vacation and sick days are not hours worked, so they do not count toward the weekly limit.
- No federal extras: federal law has no daily overtime, no double time and no weekend premium. Those come only from state law, a union contract or your employer's own policy.
29 U.S.C. 207(a)(1); 29 CFR 778.104, 778.105, 778.207(b), 778.218.
What does a 46-hour week pay under federal and California rules?
A worker paid $20.00 an hour works 10, 10, 10, 10 and 6 hours from Monday to Friday: 46 hours in total.
| Line | Hours × rate |
|---|---|
| Regular | 40 × $20.00 = $800.00 |
| Overtime | 6 × $30.00 = $180.00 |
| Week | $980.00 |
| Line | Hours × rate |
|---|---|
| Regular | 38 × $20.00 = $760.00 |
| Overtime | 8 × $30.00 = $240.00 |
| Week | $1,000.00 |
Federal rules look at the weekly total only: 46 minus 40 is 6 overtime hours. California also counts each day, so the four 10-hour days give 2 overtime hours each, 8 in all. The remaining 38 hours are under 40, so no weekly overtime is added on top.
What does California add?
California keeps the weekly rule and adds daily ones. This calculator applies all of them when you enter hours day by day.
| When | Rate |
|---|---|
| Hours over 8 in a workday, up to 12 | 1.5x |
| Hours over 12 in a workday | 2x |
| Hours over 40 in a workweek (straight-time hours only) | 1.5x |
| 7th day of work in one workweek (all 7 days worked), first 8 hours | 1.5x |
| 7th day of work in one workweek (all 7 days worked), over 8 hours | 2x |
Hours already paid as daily overtime are not counted again toward the weekly 40, so no hour is paid twice.
Cal. Labor Code 510(a); California Labor Commissioner, Overtime FAQ.
What does Alaska add?
Alaska pays 1.5 times the regular rate for hours over 8 in a day and over 40 in a week, for employers with 4 or more employees. You are paid under whichever rule gives more overtime hours, never both for the same hour. Alaska has no double time.
Alaska Stat. 23.10.060; Alaska Wage and Hour FAQ.
Who is not owed overtime?
Some salaried employees are exempt under US federal law. To be exempt as an executive, administrative or professional employee, a person must usually be paid a salary of at least $684 a week and do work that meets the duties test for that exemption. Being paid a salary is not enough on its own. Some states set a higher salary line; California's is twice the state minimum wage for full-time work.
29 CFR 541.600; Cal. Labor Code 515(a).
Overtime questions
What does OT mean on a pay stub?
OT is short for overtime. An OT line is the pay for hours counted as overtime, which under US federal law means hours over 40 in a workweek, paid at 1.5 times your regular rate. California and Alaska also count overtime by the day.
29 U.S.C. 207(a)(1).
Can my employer give me comp time instead of overtime pay?
Not in a private-sector job. Under federal law, only public agencies, such as state and local governments, may give compensatory time off instead of overtime pay, at 1.5 hours off for each overtime hour.
29 U.S.C. 207(o).
Do I get paid for overtime my employer did not approve?
Yes. Work your employer knows about, or has reason to believe you are doing, counts as hours worked even if no one asked for it. An employer can discipline you for breaking an overtime policy, but must still pay for the hours.
29 CFR 785.11 to 785.13.
Can I agree to give up overtime pay?
No. The right to overtime pay under the Fair Labor Standards Act cannot be waived by an agreement between you and your employer, so a contract that says otherwise does not remove it.
Brooklyn Savings Bank v. O'Neil, 324 U.S. 697 (1945).
Sources
- U.S. Department of Labor, Wage and Hour Division: Overtime Pay
- 29 U.S.C. 207, Maximum hours (GovInfo)
- 29 CFR Part 778, Overtime Compensation (eCFR)
- 29 CFR Part 785, Hours Worked (eCFR)
- 29 CFR 541.600, Amount of salary required (eCFR)
- California Labor Commissioner: Overtime FAQ
- Alaska Department of Labor: Wage and Hour FAQ
- Tested against
- Published test cases
- Limits
- Not legal, tax or payroll advice. An estimate from the rules named above. See the Disclaimer.