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How to Calculate Overtime Pay and Labor Laws

Overtime Pay Laws
Walter Hennery·July 28, 2026·5 min read

If you work over40 hours per week, you may be owed overtime pay. Here's how to calculate it and what to do if your employer isn't paying.

Federal Overtime Rules (FLSA)

RuleDetails
Who qualifiesNon-exempt employees (most hourly workers)
Overtime thresholdOver40 hours in a workweek
Rate1.5x regular pay ("time and a half")
Double timeNot required by federal law (some states require it)

How to Calculate

  1. Find your hourly rate: $20/hour
  2. Calculate overtime rate: $20 x 1.5 = $30/hour
  3. Count overtime hours: 45 hours - 40 = 5 overtime hours
  4. Calculate overtime pay: 5 hours x $30 = $150 overtime pay
  5. Total weekly pay: (40 x $20) + (5 x $30) = $950

Who Is Exempt?

  • Executive, administrative, professional employees earning $684+/week salary
  • Computer professionals earning $27.63+/hour
  • Outside sales employees
  • Highly compensated employees earning $107,432+/year
The state law advantage: Some states have stricter overtime laws than federal law. California requires overtime after8 hours/day, not just40 hours/week. Colorado requires overtime after12 hours/day. Always check your state's laws " — you may be owed more than you think.
⚠️ Overtime Tips:
  • Don't trust your employer's word " — know your rights under FLSA
  • Don't work off the clock " — it's illegal and you're owed overtime
  • Don't let them misclassify you " — "salary" doesn't always mean exempt
  • Don't forget to track your hours " — keep your own records
The bottom line: Non-exempt employees must receive 1.5x pay for hours over40/week. Calculate: regular rate x 1.5 = overtime rate. If your employer isn't paying overtime, file a complaint with the Department of Labor. You can recover back pay for2 years of violations.