Short answer: under US federal law, overtime is your hourly rate times 1.5 for every hour past 40 in a single workweek. Worked 45 hours at $20 an hour? That is (40 × $20) + (5 × $30) = $950. Below is the full method - time and a half, double time, daily overtime states, salaried workers and the biweekly trap - and if you would rather skip the arithmetic, the free Overtime Pay Calculator does all of it, including California daily rules, in one click.
How to calculate overtime pay, step by step
- Find your regular hourly rate. If you are paid by the hour, that is it. If you are salaried, divide: weekly salary first (annual ÷ 52), then by 40.
- Count the hours in one workweek. Overtime is counted per workweek - never per day (federally) and never per pay period. Any fixed 168-hour block your employer has chosen counts as the week.
- Split the hours. The first 40 are regular hours. Everything above 40 is an overtime hour.
- Multiply. Regular hours × your rate, plus overtime hours × your rate × 1.5. Add them together.
Example: 46 hours at $18 an hour. Regular: 40 × $18 = $720. Overtime: 6 × $27 = $162. Week’s gross pay: $882.
How to calculate time and a half
“Time and a half” is simply your rate × 1.5. At $15 an hour it is $22.50; at $20 it is $30; at $25 it is $37.50; at $30 it is $45. Your overtime hours are paid at that rate, on top of the regular 40. The most common mistake is adding time-and-a-half pay for all hours worked instead of just the hours past 40 - that overstates your pay and starts arguments with payroll that payroll will win.
| Hourly rate | Time and a half | Double time | 45-hour week pays |
|---|---|---|---|
| $15 | $22.50 | $30 | $712.50 |
| $20 | $30 | $40 | $950 |
| $25 | $37.50 | $50 | $1,187.50 |
| $30 | $45 | $60 | $1,425 |
| $40 | $60 | $80 | $1,900 |
How to calculate double time - and when you actually get it
Double time is your rate × 2. Here is the part most articles skip: federal law never requires double time. It exists in only three places: California’s daily rules (after 12 hours in a day, and after 8 hours on a seventh straight day), some union contracts and company policies, and holiday-pay agreements some employers offer voluntarily. If your employer’s handbook does not promise it and you do not work under California-style rules, a 14-hour day is still 1.5× past 40 for the week - not 2×.
Overtime after 8 hours a day: the daily-overtime states
Four states add daily rules on top of the federal weekly rule. California is the strongest: 1.5× after 8 hours in a day, 2× after 12, and special rates for a seventh consecutive day of the workweek. Alaska pays 1.5× after 8 hours a day (for employers with 4+ staff). Colorado pays 1.5× after 12 hours in a day or 12 in a row. Nevada pays 1.5× after 8 hours for lower-wage workers. Everywhere else, only the weekly 40 matters - a 14-hour Monday and a quiet Friday can legally add up to no overtime at all. The calculator has a California mode that applies the daily rules hour by hour without double-counting.
How to calculate overtime for a salaried employee
Salary does not automatically mean no overtime - it depends on whether your job is classified exempt or non-exempt, and many salaried jobs are non-exempt. For a salaried non-exempt worker, the regular rate is the salary divided by the hours it is meant to cover: a $52,000 salary is $1,000 a week, a $25 regular rate. A 45-hour week then pays $1,000 + (5 × $37.50) = $1,187.50. (Some salaried arrangements use a fluctuating-workweek method where the rate moves with hours - if your checks look like that, it is worth one careful conversation with payroll.)
The biweekly trap: why 80 hours in a pay period is not the rule
This is the most searched confusion of all, and the answer surprises people: there is no 80-hour rule. Overtime is calculated week by week, even if you are paid every two weeks. Work 45 hours one week and 35 the next - 80 total - and you are owed 5 overtime hours, because week one crossed 40. Work 45 and 45 and you are owed 10. An employer who “averages” your two weeks to make overtime disappear is breaking the rule, not applying it.
Is overtime taxed more? No - and yes, your check still looks smaller
Overtime income is taxed at exactly the same rates as regular income; there is no special overtime tax bracket. What changes is withholding: payroll software sees a bigger check, assumes that pace continues all year, and withholds as if you earned more. The difference comes back when you file your return. If a fat overtime check looked disappointingly light, this is almost always why.
Check your own paycheck in 30 seconds
Take your pay stub: hours this week, your rate, and the gross. Split the hours at 40, multiply as above, and compare. If the numbers disagree, the usual causes are an honest daily-vs-weekly mix-up, a workweek that starts on a different day than you assumed, or hours that were recorded in the wrong week - all fixable conversations. To run your exact days, including each day’s hours, use the Overtime Pay Calculator - it takes hours day by day, handles federal, California and custom rules, and shows the regular, overtime and double-time pay separately so you can compare line by line.
Frequently asked questions
How much is time and a half for $20 an hour?
Time and a half of $20 is $30 an hour. A 45-hour week at $20 therefore pays (40 × $20) + (5 × $30) = $950 before tax.
Does overtime start after 8 hours a day or 40 hours a week?
Federally, after 40 hours in a workweek. Daily overtime after 8 hours exists only in a few states - California, Alaska, Colorado and Nevada have versions of it - and in union contracts or company policies that promise it.
Can a salaried employee get overtime pay?
Yes, if the job is classified non-exempt. Salary alone does not remove overtime rights. The regular rate is the weekly salary divided by 40, and hours past 40 are paid at 1.5 times that rate.
Can my employer average my hours over two weeks to avoid overtime?
No. Each workweek stands alone under federal law, even on a biweekly payroll. 45 hours in week one is 5 overtime hours, whatever week two looks like.
Why was so much tax taken from my overtime check?
Withholding, not a higher tax rate. Payroll software annualises the bigger check and withholds more; overtime is taxed at the same rates as regular pay, and any over-withholding is refunded when you file.