Federal overtime is simple in the plain case and easy to get wrong in the others. This post works through four cases with numbers: a straight hourly week, a week with a non-discretionary bonus, a week at two pay rates, and a salaried non-exempt employee. The rules come from the Department of Labor's Fact Sheets #23 and #56A. It assumes the employee is non-exempt; if you're not sure, start with our exempt vs non-exempt post.
The federal overtime rule in one paragraph
The Fair Labor Standards Act requires overtime of at least one and a half times the regular rate for hours over 40 in a workweek. A workweek is a fixed, regularly recurring period of 168 hours: seven consecutive 24-hour periods that you choose and keep. Each workweek stands alone, so you can't average 30 hours one week and 50 the next. Federal law doesn't require overtime for weekends, holidays or days over 8 hours, and overtime earned has to be paid on the regular payday for that period.
How do you calculate time and a half?
Multiply the regular hourly rate by 1.5 to get the overtime rate, then multiply by the overtime hours.
- Add up the hours worked in the workweek.
- Subtract 40 to get the overtime hours.
- Pay the first 40 hours at the regular rate.
- Pay the overtime hours at 1.5 × the regular rate.
- Add the two for gross pay for the week.
| Regular rate | Time and a half (1.5×) | Double time (2×) | Gross for 45 hours at time and a half |
|---|---|---|---|
| $15.00 | $22.50 | $30.00 | $712.50 |
| $18.00 | $27.00 | $36.00 | $855.00 |
| $20.00 | $30.00 | $40.00 | $950.00 |
| $25.00 | $37.50 | $50.00 | $1,187.50 |
| $30.00 | $45.00 | $60.00 | $1,425.00 |
What counts in the regular rate?
The regular rate isn't always the hourly rate. DOL Fact Sheet #56A says it includes all pay for employment apart from specific exclusions, such as discretionary bonuses, gifts on special occasions, expenses paid back to the employee and pay for occasional vacation, holiday or sick days when no work is done. Non-discretionary bonuses (promised for production, attendance or hitting a target) and shift differentials go in. The method: total pay for the week, excluding the exclusions, divided by total hours worked.
| Step | Calculation | Amount |
|---|---|---|
| Straight-time pay for all hours | 45 × $15 | $675.00 |
| Add the non-discretionary bonus | $675 + $90 | $765.00 |
| Regular rate | $765 ÷ 45 hours | $17.00 |
| Overtime premium (the extra half) | 5 × ($17.00 ÷ 2) | $42.50 |
| Gross pay for the week | $765 + $42.50 | $807.50 |
Without the bonus folded in, overtime would have been worked out at $15 and the employee short-changed by $5.00.
Overtime when an employee has two pay rates
When someone works two jobs at different rates for you in the same week, the DOL says to use the weighted average of the rates. The calculation is the same as with a bonus: total straight-time pay divided by total hours, then half that rate for each overtime hour.
| Step | Calculation | Amount |
|---|---|---|
| Straight-time pay | (30 × $16) + (15 × $20) | $780.00 |
| Regular rate (weighted average) | $780 ÷ 45 hours | $17.33 |
| Overtime premium | 5 × ($17.33 ÷ 2) | $43.33 |
| Gross pay for the week | $780 + $43.33 | $823.33 |
Overtime for a salaried non-exempt employee
For a salary that covers a 40-hour week, Fact Sheet #56A divides the weekly salary by 40 to get the regular rate. A non-exempt employee on $800 a week has a $20 regular rate, so a 45-hour week adds 5 × $30 = $150 and pays $950.
When is double time required?
Federal law never requires double time; it is a state rule or an employer's choice. California is the best-known state rule. The California Department of Industrial Relations requires time and a half for hours over 8 up to 12 in a workday, over 40 in a workweek, and the first 8 hours on the seventh consecutive workday, and double time for hours over 12 in a workday and over 8 on the seventh consecutive day. Other states have their own daily rules or none, so check yours.
Paying double time when the law only requires time and a half is allowed. For the 2025–2028 federal overtime deduction, though, only the premium the FLSA itself requires counts, which our no tax on overtime post explains.
Where PayDocs fits
The free hourly paycheck calculator takes the rate, regular hours and overtime hours and shows the week's gross pay at time and a half plus the 2026 federal, Social Security, Medicare and supported state taxes. For weighted averages, bonuses or double time, work out the overtime as above and enter it as paid. The pay stub generator shows regular and overtime hours on separate lines; PayDocs works out federal income tax, Social Security, Medicare and supported state taxes for 2026 pay dates (see what we calculate).
This is general information about federal rules and one state example, not legal advice. State rules can require more.
Questions
How do you calculate time and a half?
Multiply the regular hourly rate by 1.5 and pay that for every hour over 40 in the workweek. At $18 an hour, time and a half is $27, so 45 hours pays 40 × $18 plus 5 × $27, which is $855.
Does a bonus change the overtime rate?
A non-discretionary bonus does. Add it to the week's straight-time pay, divide by total hours for the regular rate, and pay half that rate again for each overtime hour. Discretionary bonuses are excluded.
How is overtime calculated with two pay rates?
Use the weighted average. Divide total straight-time pay for the week by total hours worked, then pay an extra half of that rate for each hour over 40.
Is overtime calculated per day or per week?
Federal overtime is per workweek: hours over 40 in a fixed seven-day period. Some states, such as California, add daily overtime after 8 hours in a workday.
When is double time required?
Never under federal law. California requires double time over 12 hours in a workday and over 8 hours on the seventh consecutive workday; other states have their own rules.
Sources
- U.S. Department of Labor: Fact Sheet #23, Overtime Pay Requirements of the FLSA
- U.S. Department of Labor: Fact Sheet #56A, Overview of the Regular Rate of Pay under the FLSA
- U.S. Department of Labor: Questions and answers about the FLSA
- California Department of Industrial Relations: Overtime FAQ
- IRS: What to know about the No Tax on Overtime deduction
Sources checked October 7, 2026. This article explains how pay documents work; it is not tax or legal advice.
