Frequently Asked Questions About Overtime Pay
How is overtime pay calculated?
Overtime pay is calculated by multiplying your regular hourly rate by an overtime multiplier — typically 1.5 — and then by the number of overtime hours you worked. The formula is: overtime pay = hourly rate × 1.5 × overtime hours. For example, if you earn $20 per hour and work 5 hours of overtime in a week, your overtime pay would be $20 × 1.5 × 5 = $150, on top of your regular pay for the standard 40 hours. Use the calculator above to plug in your own numbers and see the full breakdown instantly.
What is "time and a half"?
"Time and a half" means you're paid 1.5 times your normal hourly rate for certain hours worked. Under federal law (the Fair Labor Standards Act), most hourly employees are entitled to time-and-a-half pay for any hours worked beyond 40 in a single workweek. For example, an employee earning $18/hour who works 45 hours in a week would earn their normal $18/hour for the first 40 hours, and $27/hour ($18 × 1.5) for the 5 extra hours — an additional $135 in overtime pay.
What is double time pay?
Double time means an employee is paid twice (2.0x) their regular hourly rate for certain hours. It isn't required by federal law, but it commonly applies in a few situations: California's daily overtime rules (hours worked beyond 12 in a single day, and hours beyond 8 on a 7th consecutive workday), many union and collective bargaining agreements, and company policies that pay double time for holidays or particularly long shifts. For example, a worker earning $25/hour who hits double-time rates would earn $50/hour for those hours.
How does California overtime work?
California is one of the few states with daily overtime requirements, which can make its rules more generous than federal law. In California, non-exempt employees generally earn 1.5x their regular rate for hours worked beyond 8 in a single day (in addition to the standard rule for hours beyond 40 in a week), and 2x their regular rate (double time) for hours worked beyond 12 in a single day. There's also a "7th consecutive day" rule: if an employee works all seven days of a workweek, the first 8 hours on that 7th day are paid at 1.5x and any hours beyond 8 are paid at 2x. This calculator applies all of these rules automatically when you select "California (daily OT)" and switch to Daily Hours Mode — just enter your hours for each day and the breakdown is calculated for you.
Do union workers have different overtime rules?
Yes — many unionized workers have overtime terms set by their collective bargaining agreement (CBA) rather than relying solely on state or federal law, and CBA terms can be more generous than the legal minimum. Daily overtime thresholds are common in unionized trades: an 8-hour daily threshold is typical in construction, film/TV production, and longshore work, while some entertainment industry contracts use a 10-hour daily threshold before overtime kicks in. Because every contract is different, this calculator includes a "Union / Custom Daily Threshold" ruleset option that lets you enter your own daily overtime threshold so the math matches your specific agreement.
What is daily overtime vs. weekly overtime?
Weekly overtime — the federal standard — only counts total hours worked in a workweek; you earn overtime once you cross 40 hours, regardless of how those hours are spread across the week. Daily overtime, used by states like California and Alaska and many union contracts, kicks in based on hours worked in a single day, regardless of your weekly total. This distinction matters: a worker who works 9 hours a day for 4 days has worked only 36 hours total — no federal overtime is owed — but under California's daily rule, each of those days includes 1 hour beyond the 8-hour daily threshold, meaning 4 hours of overtime would be owed even though the weekly total is under 40.
How does Alaska overtime work?
Alaska is one of the few states that requires daily overtime in addition to weekly overtime. Non-exempt employees in Alaska generally earn overtime (1.5x their regular rate) after working more than 8 hours in a single day, or more than 40 hours in a workweek — whichever threshold is reached first. Selecting "Alaska (daily OT)" in this calculator's Daily Hours Mode applies both checks automatically, so you don't have to figure out which threshold applies to your schedule.
Is overtime pay taxed differently?
No — overtime pay is not taxed at a special, higher rate. It's treated as regular taxable income, the same as your normal wages. The common misconception comes from the fact that a larger paycheck (because it includes overtime) can push some of your income into a higher marginal tax bracket, or trigger higher withholding for that pay period — but your overall effective tax rate on overtime earnings is the same as on regular earnings. This calculator shows your gross pay (before taxes and other deductions), since actual take-home pay depends on your individual tax situation, filing status, and benefit deductions.
How do I calculate overtime for a biweekly pay period?
Overtime is determined on a workweek basis (a fixed, recurring 7-day period) even if you're paid biweekly, semi-monthly, or monthly — your employer can't average two weeks together to avoid paying overtime. To estimate your biweekly pay, first calculate your weekly regular pay and overtime pay separately, then add them together and double the result (assuming a similar schedule both weeks). This calculator handles that math for you: enter your hours for a typical week, then choose "Biweekly" (or Semi-Monthly / Monthly) from the Pay Period dropdown, and the results panel will scale your "this period" totals accordingly while still keeping the annual projection based on a 52-week year.
What is the federal overtime law?
The federal overtime law comes from the Fair Labor Standards Act (FLSA). In broad terms, it requires that covered, non-exempt employees be paid at least 1.5 times their regular rate of pay for all hours worked beyond 40 in a workweek — there's no federal requirement for daily overtime or double time. Note that many employees are classified as "exempt" from overtime requirements (commonly certain salaried administrative, executive, and professional roles that meet specific salary and duty thresholds), and some states layer additional, more generous protections — like California's and Alaska's daily overtime rules — on top of the federal floor. This calculator's "Federal (40 hrs/week)" and "Other State (Federal Rules)" options apply the standard 40-hour weekly threshold.
How do I calculate my annual earnings with overtime?
To project annual earnings that include overtime, multiply your typical weekly regular pay and weekly overtime pay each by 52 (the number of weeks in a year), then add them together. That assumes your schedule and overtime hours stay roughly consistent week to week — actual annual earnings will vary if your overtime hours fluctuate. Rather than doing this math by hand, just enter your typical hourly rate and hours into the calculator above: the "Annual Projection" section of the results panel automatically shows your projected regular earnings, overtime earnings, and total earnings for the year based on the numbers you entered.