Federal overtime formula
OT Pay = Regular Hourly Rate × Overtime Multiplier × Overtime Hours
Default multiplier: 1.5× (time and a half) for hours over 40 in a workweek under the FLSA.
Overtime thresholds by jurisdiction
Federal law sets a 40-hour weekly floor. Several states add daily overtime rules.
| Jurisdiction | Daily OT | Weekly OT | Multiplier |
|---|---|---|---|
| Federal (FLSA) | None | 40 hours | 1.5× |
| California | 8 hrs (12 for 2×) | 40 hours | 1.5× / 2× |
| Colorado | 12 hrs (certain industries) | 40 hours | 1.5× |
| Nevada | 8 hrs (24-hr period) | 40 hours | 1.5× |
| Alaska | 8 hours | 40 hours | 1.5× |
Regular rate of pay
Overtime must be based on the "regular rate" — not always the base hourly wage. Nondiscretionary bonuses and shift differentials may need to be included in the average.
Straight hourly
Regular rate equals base hourly wage. OT at 1.5× is straightforward.
Salary ÷ hours
Non-exempt salaried workers: divide weekly salary by hours worked that week for the regular rate.
Multiple rates
Weighted average of different pay rates may be required when an employee works two jobs at different wages.
Overtime calculation examples
| Scenario | Regular | OT hours | Multiplier | Total pay |
|---|---|---|---|---|
| $20/hr, 45-hr week | $800 (40×$20) | 5 | 1.5× | $950 |
| $25/hr, 43-hr week | $1,000 | 3 | 1.5× | $1,112.50 |
| $18/hr, 48-hr week | $720 | 8 | 1.5× | $936 |
| $30/hr, 40 reg + 4 at 2× | $1,200 | 4 | 2.0× | $1,440 |
Exempt vs. non-exempt
Salaried employees classified as exempt under FLSA duties tests are generally not entitled to overtime regardless of hours worked. Misclassification is a common wage-and-hour issue — job title alone does not determine exempt status.