Overtime Pay Calculators
There are days when overtime is inevitable. Luckily, labor laws protect employees and secure fair payouts. Here's a rundown on some basic overtime pay rules and offers calculators for overtime wages.
What is overtime pay?
Globally, working hours tend to clock in at 40hrs per week. It's a number agreed upon across industries, but it can vary from case to case.
However, weekly work hours are regulated by law to protect the workers. So for example, the EU labor law states that time worked can't exceed 48 hours per week. All the exceptions aside, the average work hours per week seem to be in the 36-38 range, across the globe.
Overtime hours are the time you spend working after your regular work hours. And every eligible employee should be paid an increased hourly rate for their overtime work. To ensure both employers and employees are protected from malpractice and exploitation, other labor laws regulate this by:
- Determining who can be paid for overtime work;
- Setting acceptable hourly rates for overtime pay;
- Auditing, examining, and overseeing the practice of the laws.
Am I eligible for overtime pay?
Sadly, overtime compensation isn't available to everyone. Certain FLSA standards need to be met for someone to be eligible for overtime pay. Here is a brief rundown of who is (and isn't) entitled to this kind of compensation:
Eligible for overtime pay
Most of the workers covered by the FLSA are eligible for overtime pay. Both salaried and hourly-paid employees can receive overtime pay, so long as they fall under the FLSA standards linked above. Some examples of eligible employees:
- Retail associates;
- Contractors, etc.
Non-eligible for overtime pay
Of course, not everyone is entitled to compensation for overtime. Such workers are usually called "exempt" because they're exempt from the rules. Among them, we have:
- Salaried employees earning more than $684 per week, or more than $35,568 per year;
- "White-collar" workers (managerial, administrative, desk jobs);
- Seasonal employees;
- Independent contractors, etc.
For a more extensive list of professions not eligible for overtime pay, please refer to this document by the U.S. Department of Labor.
How much is my overtime pay rate?
The Fair Labor Standards Act regulates the overtime pay rate, and it is usually the same across all employee statuses.
For non-salaried employees
According to both FLSA and California Overtime Law, workers who are paid by the hour cannot be paid less than:
- 1.5 times their regular hourly rate, for any given day of the workweek, except for the seventh consecutive day, and;
- 2.0 times their regular hourly rate when they work over 12 hours on any day of the workweek, or over 8 hours on the seventh day of the workweek.
So, if your standard rate is $15 per hour, your regular overtime (1.5x) would be $22.50. Overtime after 12 consecutive hours (and after 8 hours on the seventh workday) would start at $30 per hour.
For salaried employees
Workers who receive a salary, and are eligible for overtime pay, get paid the same way, except that their calculations begin with a flat rate (their salary). If a person receives payments monthly, you can calculate this in a few simple steps:
- Divide the pay by four work weeks to get their weekly pay (ex: $1.830 per month — $1830/4 = $457.50 per week)
- Divide the week's pay by the number of hours worked (ex: $457.50 per week — $457.50/47 = $9.73$ per hour)
Then, when calculating overtime, you should keep in mind that it starts at 40 hours — so, in the above example, we have 7 hours of overtime. Therefore, the worker should be paid $9.73 for each hour in the first 40 hours, and time and a half for each hour of those additional 7 hours.
To make sure you are being paid in accordance with your industry and experience, you can always check your rates with our hourly rate calculator.
Overtime calculators and examples
Putting all of the previous talk into practice, here are some visuals of overtime calculations for better understanding. Under each image you will find a link to our spreadsheet with those calculators, so you can try them out for yourself.
For salaried employees
As we've mentioned, certain salaried employees are also non-exempt from overtime pay. Which means they can calculate their wages the same way others do.
GET Salaried Overtime Calculator
Using the same numbers from the earlier section, you can see how this calculator helps you see your overtime pay, and at the same time calculates your hourly rate.
In the first section, you can input your monthly salary, and have the calculator break down your weekly salary and hourly rate. And in the second section, you input your overall weekly hours, and how many of them were overtime hours. The calculator does the rest.
Note: This simple version, however, uses the 1.5x rate to calculate your overtime wage. For something more specific, scroll down to the next section.
For non-salaried employees
When it comes to non-exempt workers, we've also prepared one simple, and another more detailed calculator, depending on the data you're working with.
GET Simple Overtime Calculator
In the above example, we've tried to make things as simple as they get:
- You input your hourly rate;
- Optionally, you can enter your overall weekly hours worked;
- The calculator will show your wage for regular and overtime work hours.
The following example seems a little more complex, but is easy to handle. It's aimed at people who track their work hours, and therefore know how much overtime they have.
GET Detailed Overtime Calculator
As you can see, this calculator differs in that it gives you a slightly bigger breakdown of your time and finances. With it, you can enter your hourly rate, and have it calculate your 1.5x and 2x overtime hourly rate.
This version is also helpful if we assume that you have a timesheet showing how much 1.5x and 2x overtime work hours you've logged. You can input that information as well, and then the calculator will calculate the wages for all your work hours, and sum them all up in a weekly wage total at the bottom.
California overtime calculator
Last, but not least, we have the California overtime calculator. Since California overtime law has its own specific conditions, it's wise to have a calculator for it on the ready. One major difference from other states is that California calculates overtime both after the 40 hours worked per week, and if it's over 8 hours a day.
GET California Overtime Calculator
It works almost identical to the previous calculator, with the added daily cells. This is a great alternative in case you don't have a weekly timesheet totaling your work hours, but have your daily timesheets to work with.
This calculator will take into account any time clocking over the expected 8 hours daily, and multiply it with the appropriate rates.
Make overtime calculations easier with Clockify
An overtime calculator is a quick and handy tool to help you better understand your work hours and overtime wages. It's also useful if you ever doubt you're being paid fairly, or just want to know what kind of payout to expect after all the hours worked.
However, having a calculator like the ones we've provided is a small part of the larger overtime picture. You'll need accurate data, such as logged hours and reports, to make your calculations foolproof.
With Clockify, you can easily capture all the information needed to calculate overtime. It encompasses time tracking, billing, invoicing, team management, and reporting, all in one.
So, instead of formulating multiple spreadsheets, you can simply have this:
A timesheet with all billable and non-billable hours logged, and a report ready to calculate and summarize all the data at the click of a button.