Overtime Pay Calculator

Enter your work hours and hourly rate to calculate overtime pay

Basic Information

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Standard full-time is 40 hours per week

Overtime Hours

Hours worked over 40 per week

Additional Overtime (Optional)

Hours at double-time rate (holidays, excessive overtime)

Work Period

Automatically set based on work period

Understanding Overtime Laws

Federal FLSA Requirements

40-Hour Threshold: Overtime pay required for hours worked over 40 in a workweek
Time-and-a-Half Rate: Minimum 1.5x regular hourly rate for overtime hours
Workweek Definition: Fixed 7-day period (168 consecutive hours)
Non-Exempt Employees: Most hourly workers are entitled to overtime pay

Texas Overtime Laws

Follows Federal Law: Texas follows FLSA requirements with no additional state overtime laws
No Daily Overtime: Unlike California, Texas doesn't require overtime for working over 8 hours in a day
Weekly Calculation: Overtime calculated based on total hours worked in a workweek
Minimum Wage: Texas follows federal minimum wage of $7.25/hour (as of 2025)

Exempt vs Non-Exempt

Exempt Employees (No Overtime):
  • Executive, administrative, professional roles
  • Salary of at least $684/week ($35,568/year)
  • Specific job duties test requirements
  • Outside sales employees
Non-Exempt Employees (Overtime Required):
  • Most hourly workers
  • Some salaried workers under $684/week
  • Workers who don't meet duties test
  • First responders, nurses (with exceptions)

Advanced Overtime Calculation Methods

Multiple Pay Rates in One Week

Weighted Average Method: When an employee works at different pay rates during the same workweek, calculate the weighted average of all rates.

Example:
• 30 hours at $20/hour = $600
• 15 hours at $25/hour = $375
• Total: 45 hours, $975
• Weighted average: $975 ÷ 45 = $21.67/hour
• Overtime rate: $21.67 × 1.5 = $32.50/hour
• Overtime pay: 5 hours × $32.50 = $162.50

Alternative Method: Pay overtime at the rate for work performed during overtime hours, plus an additional 0.5x premium.

Salaried Non-Exempt Employees

Non-exempt salaried employees earning less than $58,656 annually (2025 threshold) are entitled to overtime pay.

Step 1: Determine weekly salary (Annual ÷ 52)
Step 2: Calculate regular hourly rate (Weekly salary ÷ 40)
Step 3: Apply 1.5x multiplier for overtime hours
Step 4: Add overtime pay to regular salary

Bonuses and Commission Impact

Non-discretionary bonuses must be included in the regular rate for overtime calculations:

  • Production bonuses
  • Attendance bonuses
  • Quality bonuses
  • Safety bonuses
  • Commission payments
Calculation: Add bonus to total weekly pay, then recalculate regular rate including the bonus amount.

State-Specific Overtime Rules

While Texas follows federal FLSA rules, some states have additional requirements:

California: Daily overtime after 8 hours, double-time after 12 hours
Alaska: Daily overtime after 8 hours
Nevada: Daily overtime after 8 hours (with exceptions)
Colorado: Daily overtime after 12 hours, weekly after 40 hours

Always check local and state laws for specific requirements in your jurisdiction.

Overtime Compliance & Best Practices

Record Keeping Requirements

Time Records: Maintain accurate records of all hours worked, including start/stop times
Pay Records: Document regular and overtime rates, total wages paid
Retention Period: Keep payroll records for at least 3 years
Employee Information: Maintain records of employee classification and exemption status

Common Compliance Mistakes

Misclassifying Employees: Incorrectly classifying non-exempt employees as exempt
Comp Time Instead of Pay: Offering compensatory time off instead of overtime pay (illegal for private employers)
Averaging Hours: Averaging hours across multiple weeks to avoid overtime
Off-the-Clock Work: Allowing or requiring work without recording hours

Penalties for Non-Compliance

Back Wages: Pay all unpaid overtime wages owed
Liquidated Damages: Additional amount equal to unpaid wages (double damages)
Civil Penalties: Up to $2,374 per violation for repeat/willful violations
Attorney Fees: May be required to pay employee's legal costs

Best Practices for Employers

Clear Policies: Establish written overtime policies and communicate them to employees
Approval Systems: Implement systems for pre-approving overtime work
Regular Audits: Conduct periodic reviews of employee classifications and pay practices
Training: Train managers on overtime laws and proper timekeeping procedures

Overtime Calculator FAQ

Overtime pay is calculated by multiplying your regular hourly rate by 1.5 (time-and-a-half) for each hour worked over 40 in a workweek. For example: $20/hour × 1.5 = $30/hour for overtime hours.

In Texas, overtime is calculated weekly, not daily. You only get overtime pay for hours over 40 in a workweek, regardless of daily hours worked. Some states like California have daily overtime rules, but Texas follows federal FLSA standards.

A workweek is any fixed 7-day period (168 consecutive hours) established by your employer. It doesn't have to be Sunday to Saturday - it could be Wednesday to Tuesday, for example. The key is that it's consistent.

Yes, employers can generally require overtime work as long as they pay the proper overtime rate. However, they cannot retaliate against employees for refusing to work overtime in certain circumstances, and some union contracts may limit mandatory overtime.

Double-time (2x regular rate) is not required by federal law but may be required by state law, union contracts, or company policy. Common scenarios include holidays, excessive overtime (over 12 hours/day in some states), or seventh consecutive day worked.

It depends on their classification. Non-exempt salaried employees earning less than $684/week or who don't meet specific duties tests are entitled to overtime. Exempt employees (executives, professionals, administrators) are not entitled to overtime pay.

The federal minimum wage is $7.25/hour as of 2025. For overtime calculations, time-and-a-half would be $10.88/hour. Some states and cities have higher minimum wages, which would result in higher overtime rates.

If you have multiple pay rates in one workweek, calculate the weighted average of all rates, then multiply by 1.5 for overtime hours. Alternatively, use the rate for the work performed during overtime hours and pay an additional 0.5x that rate for overtime premium.