How is overtime calculated?

Under the FLSA, hours worked beyond 40 in a workweek are paid at one and a half times the regular rate. At $18 an hour, 45 hours is 40 × $18 = $720 plus 5 × $27 = $135, so $855. The regular rate includes shift differentials and non-discretionary bonuses, not just the base wage.

Is overtime calculated daily or weekly?

Weekly under federal law: only hours beyond 40 in the workweek count, however they are spread. A few states add daily thresholds. California pays 1.5x after 8 hours in a day and 2x after 12; Alaska, Nevada and Colorado also have daily rules.

Is overtime paid after 8 hours a day?

Not under federal law. A 10-hour day in a 38-hour week earns no overtime under the FLSA. In California, and in a few other states, hours beyond 8 in a day are overtime regardless of the weekly total.

Do paid breaks and holidays count toward the 40 hours?

Paid short breaks of 20 minutes or less are hours worked and count. Paid holidays, vacation and sick days are not hours worked and do not count toward the 40-hour threshold unless your policy or contract says otherwise.

Pay at twice the regular rate. Federal law never requires it. California requires it beyond 12 hours in a day and beyond 8 hours on the seventh consecutive day of a workweek. Elsewhere it exists only by policy or union contract.

Overtime calculator: time and a half after 40 hours, with the weekly breakdown

Free tool that breaks down a work week under federal rules: regular hours up to 40, then at least one and a half times the regular rate on everything beyond.

Contract hours per weekHours actually workedGross hourly rate ($)

Federal overtime threshold : 40h. There is no federal cap on overtime hours. Some states add daily rules on top: California pays 1.5x beyond 8 hours in a day and 2x beyond 12.

Weekly breakdown

Normal hours40 h × $15 = $600
Overtime at 1.5x7 h × $22.5 = $157.5
Total gross cost$757.5

Hours above the contracted week. Under the FLSA these have to be paid, not swapped for time off: comp time is not allowed for private employers. : 7 h

How it works

Enter contract hours, hours actually worked and the gross hourly rate. The calculator applies the federal threshold of 40 hours in a workweek. Several states add daily rules on top, California being the strictest, so check yours before relying on the total.

Worked example: a 46-hour week at $18

40 regular hours at $18 is $720. The 6 hours beyond 40 are paid at time and a half, $27 an hour, so $162. Gross pay for the week: $882. If $2 an hour of night differential was paid on 20 of those hours, the regular rate becomes ($828 + $40) ÷ 46 = $18.87, and the overtime premium is recalculated on it. For the daily rules that apply in California, and the full week from clock-in and clock-out, use the time card calculator.

Overtime: the questions people ask

How is overtime calculated?: Under the FLSA, hours worked beyond 40 in a workweek are paid at one and a half times the regular rate. At $18 an hour, 45 hours is 40 × $18 = $720 plus 5 × $27 = $135, so $855. The regular rate includes shift differentials and non-discretionary bonuses, not just the base wage.
Is overtime calculated daily or weekly?: Weekly under federal law: only hours beyond 40 in the workweek count, however they are spread. A few states add daily thresholds. California pays 1.5x after 8 hours in a day and 2x after 12; Alaska, Nevada and Colorado also have daily rules.
Is overtime paid after 8 hours a day?: Not under federal law. A 10-hour day in a 38-hour week earns no overtime under the FLSA. In California, and in a few other states, hours beyond 8 in a day are overtime regardless of the weekly total.
Do paid breaks and holidays count toward the 40 hours?: Paid short breaks of 20 minutes or less are hours worked and count. Paid holidays, vacation and sick days are not hours worked and do not count toward the 40-hour threshold unless your policy or contract says otherwise.
What is double time?: Pay at twice the regular rate. Federal law never requires it. California requires it beyond 12 hours in a day and beyond 8 hours on the seventh consecutive day of a workweek. Elsewhere it exists only by policy or union contract.

Go further: Overtime pay 2026: the 40-hour rule, explained and Working Time Management in Retail: The Complete 2026 Guide.

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