How Overtime Pay Works
Under the US Fair Labor Standards Act, most non-exempt employees earn at least 1.5× their regular rate — 'time and a half' — for every hour worked beyond 40 in a workweek. Some employers or union agreements offer 2× ('double time') for holidays or long shifts. This calculator lets you pick the multiplier and instantly see your weekly and annualized earnings.
A common myth is that overtime is 'taxed more'. It is not — overtime is ordinary income taxed at your normal rate. A bigger paycheck can temporarily push more of that week's pay into a higher withholding tier, but your true tax rate for the year is unchanged. Whether you qualify for overtime depends on your job classification, so check whether your role is exempt or non-exempt.
Source: US Department of Labor (FLSA). Last updated July 29, 2026. Estimates only — not tax advice.
Frequently Asked Questions
How is overtime pay calculated?
Overtime is your regular hourly rate multiplied by an overtime rate — usually 1.5× ('time and a half') — for each hour worked beyond 40 in a week. For example, $20/hour becomes $30/hour of overtime.
What is time and a half for $20 an hour?
Time and a half for $20 is $30 per hour. Ten overtime hours would add $300 to that week's pay.
Is overtime taxed more?
No — overtime is taxed at the same rate as regular wages. A larger paycheck can push more income into a higher withholding bracket that week, but your overall rate is unchanged.
Who is entitled to overtime pay?
Under the US Fair Labor Standards Act, most non-exempt employees must receive at least 1.5× pay for hours over 40 in a workweek. Exempt salaried roles may not qualify — check your classification.