Overtime Pay Calculator
Calculate overtime pay at 1.5× the regular rate, including nondiscretionary bonuses and multiple pay rates.
Reviewed by theComplianceToolsLibrary Editorial Team · Last updated
Key facts
- Overtime trigger
- More than 40 hours in a single workweek (federal)
- Overtime rate
- 1.5× the regular rate of pay
- Regular rate includes
- Hourly wages plus nondiscretionary bonuses, shift differentials, and commissions
- Excluded from regular rate
- Discretionary bonuses, gifts, and most paid-leave payouts
How is overtime pay calculated?
Under the FLSA, non-exempt employees must be paid at least 1.5 times their "regular rate" for every hour worked over 40 in a workweek. The regular rate isn't just the base hourly wage — it's total straight-time pay divided by total hours worked.
That means nondiscretionary bonuses, shift differentials, and commissions must be folded into the regular rate before overtime is calculated, which raises the overtime rate. Discretionary bonuses and true gifts are excluded. Overtime is figured workweek by workweek and can't be averaged across two weeks of a pay period.
How to use this tool
- 1
Enter hours worked
Enter the total hours the employee worked in the workweek.
- 2
Enter pay
Enter the base hourly rate and any nondiscretionary bonus or extra pay for that week.
- 3
Review the regular rate
The tool blends pay into the regular rate the FLSA requires before applying overtime.
- 4
See the overtime owed
View straight-time pay, the overtime premium, and total pay for the week.
Common mistakes to avoid
- Calculating overtime on the base wage only, ignoring bonuses and shift differentials.
- Averaging hours across two weeks of a pay period instead of figuring each workweek separately.
- Labeling a nondiscretionary bonus "discretionary" to keep it out of the regular rate.
- Offering comp time instead of overtime pay in the private sector.
What to do next
- Pay overtime by the next regular payday for the period it was earned.
- Keep accurate time and pay records for each workweek.
- Confirm the employee is actually non-exempt with the FLSA Overtime Exemption Checker.
- Check state law, which may require daily overtime or double-time.
Sources
Frequently asked questions
When is overtime owed under federal law?
For hours worked over 40 in a single workweek. The FLSA doesn't require daily overtime, though some states do.
What is the regular rate of pay?
Total straight-time pay (including nondiscretionary bonuses and most incentive pay) divided by total hours worked that week.
Do bonuses affect overtime pay?
Nondiscretionary bonuses do — they must be included in the regular rate, which raises the overtime rate. Discretionary bonuses are excluded.
Can I give comp time instead of paying overtime?
Private-sector employers generally cannot; overtime must be paid in wages.
Related tools
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