How Overtime Is Worked Out
Federal Rule (FLSA)
- Regular hours = the first 40 hours in the workweek
- Overtime hours = hours over 40, paid at 1.5 × the hourly rate
California Rule
- Each day: up to 8 hours regular, over 8 and up to 12 at 1.5 ×, over 12 at 2 ×.
- Each week: regular hours past 40 become overtime at 1.5 ×.
- Seventh day in a row (all seven days of the Sunday-to-Saturday week worked): the first 8 hours at 1.5 ×, over 8 at 2 ×.
Not included: alternative workweek schedules, bonuses or commissions in the regular rate, and other states’ daily rules.
Worked Examples
Federal: 9 hours a day Monday to Friday at $20 an hour is 45 hours — 40 regular hours × $20 = $800, plus 5 overtime hours × $30 = $150, for $950.
California: 10, 10, 13, 8 and 8 hours at $20. The daily rule gives 40 regular hours, 8 overtime hours and 1 double-time hour: $800 + 8 × $30 + 1 × $40 = $1,080.
Frequently Asked Questions
How is overtime calculated?
Under the federal Fair Labor Standards Act, non-exempt employees get at least 1.5 times their regular rate for every hour over 40 in a workweek. 45 hours at $20 an hour is 40 × $20 + 5 × $30 = $950.
What is California daily overtime?
In California, hours over 8 in a day are paid at 1.5 times, and hours over 12 in a day at double time. Hours over 40 in the week are also overtime. On the seventh day worked in a row in a workweek, the first 8 hours are paid at 1.5 times and anything over 8 at double time.
Do paid holidays and PTO count toward 40 hours?
Not under federal law — only hours actually worked count toward the 40. An employer’s policy or a union contract can be more generous.
Who is exempt from overtime?
Employees who meet a duties test and a salary test — for example many executive, administrative and professional staff — are exempt. Exemption depends on the job, not the title; check the Department of Labor’s rules and your state’s.
Is the regular rate always the hourly rate?
Not always. Non-discretionary bonuses, shift differentials and commissions can raise the regular rate that overtime is based on. This calculator uses the hourly rate you enter.
Which states have daily overtime?
California has the broadest daily overtime rules. Alaska and Nevada also have daily overtime in some cases, and Colorado has a 12-hour daily rule. This calculator covers the federal weekly rule and California’s rules.