The overtime pay formula
Overtime hours are paid at a premium — your hourly rate times an overtime multiplier (1.5 for time-and-a-half):
regular pay = rate × regular hours
overtime rate = rate × multiplier
overtime pay = overtime rate × OT hours
total = regular pay + overtime pay
Federal law sets time-and-a-half (1.5×) for non-exempt employees beyond 40 hours a week. Some contracts use double time (2×) for holidays or long shifts.
Worked example
$20 an hour, 40 regular hours and 5 overtime hours at 1.5×:
Regular pay: $20 × 40 = $800.
Overtime rate: $20 × 1.5 = $30/hour.
Overtime pay: $30 × 5 = $150.
Total: $800 + $150 = $950.
Common mistake: overtime pay is the full 1.5× rate on each OT hour, not just an extra 0.5× premium on top of regular pay already counted. Make sure overtime hours are not also included in your regular-hours field.
Overtime rules vary
Under the federal Fair Labor Standards Act, non-exempt workers earn overtime past 40 hours in a workweek. Several states add daily overtime (for example, over 8 hours in a day) or double-time rules. Exempt salaried roles may not qualify at all. Confirm your status and local rules before relying on a number.