The overtime formula
Regular pay equals the base hourly rate multiplied by regular hours. Overtime pay equals the base rate multiplied by the overtime multiplier and overtime hours.
What a multiplier means
A 1.5 multiplier is often called time and a half. A 2.0 multiplier is double time. The correct multiplier, threshold, and eligible earnings can vary by jurisdiction and contract.
Keep the pay period consistent
Do not enter a weekly rate with monthly hours. Regular hours, overtime hours, and the resulting total must refer to the same period.
Eight hours at time and a half
At $25 per hour, 40 regular hours pay $1,000. Eight overtime hours at $37.50 pay $300, for $1,300 total gross pay.
$25 × 40 + ($25 × 1.5 × 8) = $1,300Common mistakes to avoid
Frequently asked questions
What is time and a half?
It is an overtime rate equal to 1.5 times the regular hourly rate.
Does overtime always start after 40 hours?
No. Thresholds and eligibility depend on local law, the work arrangement, and the pay period.
Can salaried employees receive overtime?
Sometimes. Salary alone does not settle eligibility. Check the applicable labor rules and employment terms.