How to Calculate Overtime Pay in 2026

Overtime pay in the United States usually starts with one baseline rule: covered non-exempt employees earn at least 1.5x their regular rate for hours worked over 40 in a workweek.

The full calculation can still change when state daily overtime, double time, bonuses, commissions, shift differentials, tipped wages, or salary agreements affect the regular rate. Use this guide as the worksheet, then check the numbers in the calculator.

Federal overtime formula

If you earn $20/hour and work 47 hours in a federal-only weekly overtime state, the first 40 hours are regular pay and 7 hours are overtime. The overtime rate is $30/hour, so the overtime pay is $210 and total gross pay is $1,010.

Step-by-step overtime calculation

1. Identify the workweek. Overtime is usually calculated one workweek at a time.
2. Count actual hours worked, including short breaks and required off-clock work.
3. Find the regular rate, including required bonuses, commissions, and premiums.
4. Apply federal weekly overtime after 40 hours unless a better state rule applies.
5. Compare state daily overtime or double-time rules before finalizing the estimate.

For more complex pay, use the regular rate of pay calculator before multiplying by 1.5.

When state rules change the answer

California, Alaska, Colorado, Nevada, and some industry-specific rules can require overtime before the workweek reaches 40 hours. California also has double-time rules after 12 hours in a workday and special seventh-day rules. That is why the best workflow is to calculate the federal baseline first, then compare the state calculator.