Calculate overtime pay for hourly employees. Supports time-and-a-half, double time, and custom overtime thresholds. FLSA compliant.
Under the FLSA, non-exempt employees must receive overtime pay at 1.5x their regular rate for hours exceeding 40 in a workweek. Some states like California also require daily overtime after 8 hours and double time after 12 hours.
Overtime pay is calculated by multiplying an employee's hourly rate by the overtime multiplier (typically 1.5x) for any hours worked beyond the regular threshold (typically 40 hours per week).
Overtime Pay = (Hours over 40) x (Hourly Rate x 1.5)
Total Pay = (Regular Hours x Rate) + Overtime Pay
An employee earning $25/hour who works 48 hours in a week:
Under the FLSA, non-exempt employees are entitled to overtime pay. Exempt employees (typically salaried workers earning above a certain threshold who perform executive, administrative, or professional duties) are generally not eligible. As of 2024, the salary threshold for overtime exemption is $35,568 per year.