Overtime pay is the base rate times 1.5, times the extra hours
Under federal law (FLSA) non-exempt workers earn at least 1.5 times their rate for every hour past 40 in a week. So at $20 an hour, overtime is $30 an hour — $10 extra for each of those hours. Double time simply swaps the 1.5 for a 2.0.
Overtime pay by hourly rate
| Base rate | OT rate (1.5×) | 45h week | 50h week | Extra for 5h OT |
|---|---|---|---|---|
| $15.00 | $22.50 | $675.00 | $750.00 | +$112.50 |
| $20.00 | $30.00 | $900.00 | $1,000.00 | +$150.00 |
| $25.00 | $37.50 | $1,125.00 | $1,250.00 | +$187.50 |
| $30.00 | $45.00 | $1,350.00 | $1,500.00 | +$225.00 |
| $40.00 | $60.00 | $1,800.00 | $2,000.00 | +$300.00 |
A steady 5 overtime hours a week at $25 adds about $9,750 over a year; at 10 hours a week it roughly doubles. For a salaried worker, convert first: annual salary divided by 2,080 gives the hourly base.
The parts people get wrong
- Weekly, not daily (federally). The FLSA counts hours over 40 in a workweek. California, Alaska, Nevada, and Colorado add daily overtime rules on top.
- Bonuses can raise the base. Nondiscretionary bonuses, commissions, and shift differentials fold into the "regular rate" used for overtime, so the true OT rate can be higher than the posted wage.
- Unapproved overtime still gets paid. If the employer knew or should have known the work happened, the hours must be paid. They can discipline, but not withhold pay.
- No special OT tax. Overtime is taxed as ordinary income. Since mid-2025, up to $12,500 of qualified overtime is deductible from federal income tax, but Social Security and Medicare still apply.
Common questions
How is overtime pay calculated?
Multiply the hours over 40 in a week by your hourly rate, then by 1.5. At $20 an hour working 48 hours, that is 8 overtime hours at $30, or $240 in overtime on top of $800 in regular pay.
What is the difference between time-and-a-half and double time?
Time-and-a-half is 1.5 times your base rate and is the federal minimum for hours over 40 a week. Double time is 2 times the base rate. Federal law does not require double time; California mandates it beyond 12 hours in a day, and some employers offer it for holidays.
Do salaried employees get overtime?
They can. A salary alone does not exempt you. Unless you meet all three federal tests (salary basis, a salary above the threshold, and executive, administrative, or professional duties), you are owed overtime.
