Your timesheet says 45 hours. Your pay stub shows straight time for all of them. Before you call payroll, know this: under the Fair Labor Standards Act, those 5 extra hours are owed at 1.5 times your base rate. Not a penny less.

The calculation itself is arithmetic. The mistakes come from what gets counted, what gets left out, and which threshold applies. Here is the sequence, the traps, and the fix for each.

Find your 168-hour window

Every overtime calculation hangs on a single, fixed 168-hour period. The FLSA calls this a workweek: seven consecutive 24-hour periods, recurring on the same schedule. Your employer picks the start day and time. Sunday at midnight is common. Wednesday at 7:00 AM is legal too.

Hours never combine across two separate workweeks. Log 30 hours one week and 20 the next. That is 50 total hours across two weeks and zero overtime, because neither week crossed 40. An employer cannot shift the boundary retroactively to erase overtime already accrued.

Open your employee handbook. Find the written definition of the workweek. If none exists, the Department of Labor treats the calendar week as the default.

The start day changes everything. A workweek that begins Friday at noon splits a long Thursday differently than one that begins Monday at midnight. Ask HR for the exact start time if the handbook is silent.

The window must stay consistent. Changing it to dodge a heavy week is a violation. If a change is permanent, the employer must announce it in advance and pay overtime for any overlap week that results.

Reconstruct your regular rate

The regular rate is not your base hourly wage. It is a legal term of art under the FLSA: all remuneration for employment divided by hours worked.

Fold these in:

  • Hourly wages and salaries for non-exempt staff
  • Piece-rate earnings
  • Commissions
  • Non-discretionary bonuses (tied to production, attendance, or quality)
  • Shift differentials (extra pay for night or weekend shifts)

Leave these out:

  • Discretionary bonuses (announced after the fact, not tied to hours)
  • Gifts and holiday pay
  • Vacation and sick pay
  • Expense reimbursements
  • Employer benefit plan contributions

Working two roles at different pay rates in the same workweek? You cannot use the higher rate for overtime. Total straight-time earnings get divided by total hours to produce a blended rate. That blended rate is the basis for the 1.5x multiplier.

Count only hours worked

Overtime under federal law triggers after 40 hours actually worked in a single workweek. Paid leave does not count toward the threshold.

Count these:

  • Time spent performing job duties
  • Time on duty or required to be on site
  • Certain waiting time (engaged to wait, not waiting to be engaged)
  • Required training and meetings

Skip these:

  • Holiday pay
  • Vacation pay
  • Sick pay
  • Unpaid meal breaks of 30 minutes or more where the worker is fully relieved of duties
  • Commuting time

The holiday-pay trap: a worker logs 35 hours and receives 8 hours of holiday pay. The pay stub shows 43 compensated hours. Hours worked: 35. No overtime is owed. Only hours physically worked push the count toward 40.

Apply the multiplier

The federal multiplier is 1.5 times the regular rate. States can require more.

California mandates double time at 2x for hours beyond 12 in a single day and for hours beyond 8 on the seventh consecutive workday. Alaska and Nevada impose daily overtime after 8 hours, even when the weekly total stays below 40. Colorado triggers daily overtime after 12 hours. Oregon requires it after 10 hours in manufacturing establishments. New York adds spread-of-hours pay for hospitality workers whose workday exceeds 10 hours.

Visit your state labor department website for the current thresholds. The federal rule is the floor, never the ceiling.

Add straight time and overtime

Total gross pay equals straight-time earnings plus the overtime premium.

Formula: (straight-time hours × regular rate) + (overtime hours × regular rate × 1.5)

Run the numbers on every pay stub. A rounded-down overtime rate is a wage theft red flag.

Hourly worker, 45 hours

Base rate: $15.00 an hour. Workweek: 45 hours.

Overtime hours: 5. Overtime rate: $15.00 × 1.5 = $22.50.

  • Straight time: 40 × $15.00 = $600.00
  • Overtime: 5 × $22.50 = $112.50
  • Gross: $712.50

Same rate, other totals:

  • 40 hours: 40 × $15.00 ($600.00) + 0 × $22.50 ($0.00) = $600.00
  • 50 hours: 40 × $15.00 ($600.00) + 10 × $22.50 ($225.00) = $825.00
  • 60 hours: 40 × $15.00 ($600.00) + 20 × $22.50 ($450.00) = $1,050.00

Hourly worker at $20.00 an hour

  • 40 hours: 40 × $20.00 ($800.00) + 0 × $30.00 ($0.00) = $800.00
  • 45 hours: 40 × $20.00 ($800.00) + 5 × $30.00 ($150.00) = $950.00
  • 50 hours: 40 × $20.00 ($800.00) + 10 × $30.00 ($300.00) = $1,100.00
  • 60 hours: 40 × $20.00 ($800.00) + 20 × $30.00 ($600.00) = $1,400.00

Hourly worker at $25.00 an hour

  • 40 hours: 40 × $25.00 ($1,000.00) + 0 × $37.50 ($0.00) = $1,000.00
  • 45 hours: 40 × $25.00 ($1,000.00) + 5 × $37.50 ($187.50) = $1,187.50
  • 50 hours: 40 × $25.00 ($1,000.00) + 10 × $37.50 ($375.00) = $1,375.00
  • 60 hours: 40 × $25.00 ($1,000.00) + 20 × $37.50 ($750.00) = $1,750.00

Hourly worker at $35.00 an hour

  • 40 hours: 40 × $35.00 ($1,400.00) + 0 × $52.50 ($0.00) = $1,400.00
  • 45 hours: 40 × $35.00 ($1,400.00) + 5 × $52.50 ($262.50) = $1,662.50
  • 50 hours: 40 × $35.00 ($1,400.00) + 10 × $52.50 ($525.00) = $1,925.00
  • 60 hours: 40 × $35.00 ($1,400.00) + 20 × $52.50 ($1,050.00) = $2,450.00

Multiple pay rates in one week

Same employer, two roles. 30 hours as a server at $15.00 an hour. 20 hours as a shift lead at $20.00 an hour. Total: 50 hours.

Find the blended rate

  • Server earnings: 30 × $15.00 = $450.00
  • Shift lead earnings: 20 × $20.00 = $400.00
  • Total straight-time: $850.00
  • Weighted average: $850.00 ÷ 50 = $17.00

Calculate the overtime premium

Overtime hours: 10. Overtime rate: $17.00 × 1.5 = $25.50.

  • Straight-time for all 50 hours: $850.00
  • Overtime premium (additional 0.5 × $17.00 for 10 hours): $85.00
  • Gross: $935.00

The half-time premium method shown here is the standard weighted-average approach. The worker gets full straight-time earnings for every hour plus the extra half-time kicker on overtime hours.

Salaried non-exempt worker

A salary does not block overtime. Only an exempt classification does. Non-exempt salaried staff get overtime just like hourly workers.

Standard calculation

Weekly salary: $800.00. Hours worked: 45.

  • Regular rate: $800.00 ÷ 40 = $20.00
  • Overtime hours: 5
  • Overtime rate: $20.00 × 1.5 = $30.00
  • Overtime pay: 5 × $30.00 = $150.00
  • Gross: $800.00 + $150.00 = $950.00

Fluctuating workweek exception

Some salaried non-exempt workers with varying hours fall under the fluctuating workweek method. The salary covers all hours worked, straight time. Overtime is paid at an additional 0.5x, not 1.5x. This method has strict legal requirements. Check the Department of Labor Wage and Hour Division website for current rules and confirm with an employment attorney before relying on it.

State rules that override the federal floor

California

Daily overtime after 8 hours at 1.5x. Double time after 12 hours. Seventh consecutive day: 1.5x for the first 8 hours, 2x beyond. Alternative workweek schedules like 4/10 require an employee vote. Agricultural overtime phased in under AB 1066; check the California Division of Labor Standards Enforcement for current thresholds by employer size.

Alaska

Daily overtime after 8 hours at 1.5x. Weekly overtime after 40 hours at 1.5x. Confirm double-time provisions with the Alaska Department of Labor.

Nevada

Daily overtime after 8 hours at 1.5x for workers earning below 1.5 times the state minimum wage. Weekly overtime after 40 hours. A 2024 ballot measure changed daily overtime rules for certain workers. Verify current status with the Nevada Office of the Labor Commissioner.

Colorado

Daily overtime after 12 hours at 1.5x. Weekly overtime after 40 hours at 1.5x. Check the Colorado Department of Labor and Employment for any threshold updates.

Oregon

Weekly overtime after 40 hours at 1.5x. Manufacturing establishments: daily overtime after 10 hours. Confirm current rules with the Oregon Bureau of Labor and Industries.

New York

Weekly overtime after 40 hours at 1.5x. Hospitality industry: spread-of-hours pay adds an extra hour at minimum wage when the workday spans more than 10 hours. Verify with the New York State Department of Labor.

Mistakes that cost you money

Skipping daily overtime

Working 9 hours Monday and 35 total for the week means no federal overtime. California, Alaska, and Nevada law says otherwise. Know your state's daily trigger.

Dropping bonuses from the regular rate

A non-discretionary bonus raises the regular rate. Recalculate the rate for the week the bonus was earned. Paying overtime on the base wage alone shortchanges the worker.

Treating holiday pay as hours worked

Only hours physically worked count toward 40. Holiday, vacation, and sick pay sit outside the threshold.

Using the wrong rate for multi-role workers

Two pay rates in one week require a weighted average. Using the higher rate overpays. Using the lower rate is a violation.

When the common advice is wrong

"Salaried means no overtime" is false. Exemption depends on duties and salary level, not on whether pay is called a salary. A worker earning $700 a week doing manual labor is almost certainly non-exempt. A worker earning $1,500 a week making independent business decisions may be exempt. The Department of Labor sets the salary threshold: as of July 2024 it was $844 a week. Check the DOL Wage and Hour Division for the current figure.

Part-time status does not block overtime either. Any non-exempt worker who exceeds the applicable daily or weekly threshold is owed overtime.

Overtime is not taxed at a higher rate. It is ordinary income, taxed at the same marginal rate as all other earnings. Withholding may spike on a single paycheck because IRS tables assume that check represents a full year of earnings. The actual tax liability settles when you file.

What to do right now

Pull your last pay stub. Find the workweek definition in your employee handbook. Count your hours worked, not your paid hours. Multiply overtime hours by 1.5 times your regular rate, including non-discretionary bonuses and shift differentials. If the numbers do not match, raise it with payroll in writing.

Payroll processors: hard-code the workweek definition into your scheduling software. Audit bonus structures to flag non-discretionary pay that must fold into the regular rate. Check your state labor department site for daily overtime thresholds before each quarter ends.

Managers scheduling shifts: a 10-hour day in California costs more than a 10-hour day in a state with no daily overtime rule. Build schedules against the strictest applicable standard.

This information does not constitute legal advice. Overtime laws vary by state and change through legislation and court rulings. Confirm current thresholds with the U.S. Department of Labor Wage and Hour Division or your state labor department, and consult a qualified employment attorney for your specific situation.