How is overtime pay calculated? Time and a half explained

Concerns & risks

You're an hourly worker who worked 46 hours and earned a bonus, and you want to check your overtime math.

Causes & evidence

The Fair Labor Standards Act requires covered, non-exempt employees to receive overtime pay of at least one and one-half times their regular rate of pay for hours worked over 40 in a workweek. A workweek is a fixed, recurring period of 168 hours (seven consecutive 24-hour periods); each workweek stands alone, so hours can't be averaged across two weeks. The regular rate isn't always just the hourly wage: DOL Fact Sheet 23 explains that it generally includes nondiscretionary bonuses, such as attendance or production bonuses promised in advance, while discretionary bonuses and some other payments are excluded. Federal law doesn't require overtime for weekends or holidays as such, or for more than eight hours in a day, though some states, such as California, have daily overtime rules. Employers must keep accurate time records, and you can contact the Wage and Hour Division if you think you're underpaid.

Who this applies to: overtime rules apply to non-exempt employees. Some salaried employees are also non-exempt and owed overtime. A few industries have special rules, and public-sector employers can sometimes give comp time instead of overtime pay. State laws may add daily overtime or other protections, and you're owed the more generous rule.

Assuming overtime is always exactly 1.5 times your base wage can hide underpayment when nondiscretionary bonuses should raise your regular rate.

What to do

1. Write down your hours for each day of the workweek your employer uses.
2. Add base pay plus any nondiscretionary bonus, then divide by total hours to estimate the regular rate.
3. Multiply hours over 40 by half the regular rate to estimate the overtime premium owed on top.
4. Compare your estimate with your pay stub and ask payroll to explain any gap in writing.
5. If it isn't resolved, contact the Wage and Hour Division or your state labor agency.

Common mistakes:

• Averaging hours over two weeks
• Ignoring nondiscretionary bonuses
• Not keeping your own record of hours
• Assuming state rules match federal ones

ReportSpeedMan tip: Keep a simple log of start, end and break times on your phone. Your own records help if your employer's records are wrong.

What I would actually do

I'd keep my own log of hours, work out the regular rate with the bonus included, and send payroll a short, polite email showing my math.

The trade-off people miss: an exact amount owed depends on how your bonus is structured and your state's rules, so treat your own estimate as a starting point for a conversation, not a final answer.

How to tell it worked

Your pay stub matches your overtime estimate.

Quick FAQ

Can my employer make me work overtime?
Federal law generally allows it, but it must be paid.

Do paid holidays count toward 40 hours?
Under federal law, only hours worked count.

How far back can I claim?
Generally two years, or three for willful violations.

Wrap-up: Non-exempt workers get at least 1.5 times the regular rate for hours over 40 in a workweek, and that rate generally includes nondiscretionary bonuses. Check your stub and ask payroll about gaps.

Wiki: Tax Withholding and Form W-4 and Wage and Hour Basics (FLSA).

How is overtime pay calculated: primary sources

• DOL: Overtime pay
• DOL Fact Sheet 23: Overtime pay requirements