How to Calculate Overtime
The formula is one line; the mistakes live in what counts as hours worked. Both, explained.
Quick calculator
The formula
Overtime pay = hours worked over 40 in the workweek × regular rate × 1.5
Three terms, three traps:
1. “Hours worked” — not scheduled, not on the clock
Unpaid meal breaks don't count; paid breaks do. Mandatory training does. Travel between sites during the day does; home-to-work doesn't. Overtime waits for worked hours.
2. “Workweek” — a fixed 7 days your employer picks
It can start any day (Sunday–Saturday is common) but it can't move to dodge OT. Pay-period boundaries don't reset it: biweekly pay = two separate 40-hour tests.
3. “Regular rate” — everything hourly plus most bonuses
Shift differentials, non-discretionary bonuses, and commissions flow into the regular rate. With two rates in one week, use the weighted average: $20×30h + $25×15h = $975 straight over 45h → regular rate $21.67 → 5 OT hours pay 5 × 1.5 × $21.67 = $162.50.
Worked examples
| Week | Rate | Math | Gross |
|---|---|---|---|
| 44 h | $15.00 | 40×15 + 4×22.50 | $690.00 |
| 44 h | $20.00 | 40×20 + 4×30 | $920.00 |
| 47.5 h | $22.00 | 40×22 + 7.5×33 | $1,127.50 |
| 50 h (CA: 5×10h days) | $20.00 | 5×(8×20 + 2×30) | $1,100.00 |
State variations in one glance
Federal is the floor. California (and Colorado, Nevada in defined cases) add daily overtime; Alaska adds it over 8/day and 40/week. When state and federal rules both apply, the worker gets whichever pays more. State rules: your CA calculator or your state labor department.