How to Calculate Overtime Pay (2026 Guide)

Overtime pay is extra wages for working long hours. Under the federal Fair Labor Standards Act (FLSA), most hourly (non-exempt) employees must be paid 1.5 times their regular rate for every hour over 40 in a single workweek. Here is how to work it out.

Step 1: Find your regular rate

Start with your regular hourly rate. If you only earn a flat hourly wage, that is your regular rate. If you also earn nondiscretionary bonuses, commissions or shift differentials, those are added in and the regular rate can be higher than your base wage. Overtime is calculated on the higher figure.

Step 2: Count hours over 40 in the workweek

Overtime is based on a single, fixed seven-day workweek, not a pay period. Add up the hours you worked in that week. Anything over 40 is overtime. Paid time off and holidays you didn't work don't count toward the 40.

Step 3: Multiply overtime hours by 1.5× the rate

Overtime hours are paid at 1.5 × your regular rate. Example: at $20/hour for 46 hours, you earn 40 × $20 = $800 plus 6 × $30 = $180, for $980 gross. Use the overtime calculator to do this instantly and apply your state's rules.

Watch for daily overtime states

California, Alaska, Nevada and Colorado require overtime based on hours per DAY, not just per week, and California adds double time. In those states you may earn overtime even in a week under 40 hours. Pick your state in the calculator and enter your daily hours.