How "Time and a Half" Works
Overtime pay is a federally mandated bonus for employees who work more than 40 hours in a single week. The Fair Labor Standards Act (FLSA) requires that this extra time be paid at a rate of 1.5 times your regular hourly wage.
1. The Calculation Formula
Calculating your paycheck involves two steps when overtime is involved:
- Step 1 (Regular Pay): The first 40 hours × Your Regular Rate.
- Step 2 (Overtime Pay): Any hours above 40 × (Your Regular Rate × 1.5).
Example:
You earn $20/hr and work 45 hours.
- 40 hours × $20 = $800
- 5 OT hours × $30 = $150
- Total Paycheck = $950
2. Double Time vs. Time and a Half
Federal law only requires "Time and a Half" (1.5x). However, some states (like California) or union contracts require "Double Time" (2.0x) if you work more than 12 hours in a single day or 7 consecutive days.
Frequently Asked Questions (FAQ)
1. How is overtime pay calculated?
Overtime is calculated at 1.5 times your regular hourly rate (Time and a Half) for every hour worked over 40 hours in a single workweek.
2. What is the overtime rate for $20 an hour?
If your base rate is $20/hr, your overtime rate is $30/hr ($20 x 1.5). You earn $30 for every hour worked past 40.
3. Does this tool calculate Double Time?
This specific tool focuses on standard Time and a Half (1.5x). For double time calculations, simply multiply your base rate by 2 manually.