Federal law counts by the week
The Fair Labor Standards Act requires one and a half times the regular rate for hours worked beyond 40 in a week. There is no federal daily threshold. States such as California, Alaska, Nevada and Colorado add daily rules of their own, but that is state law, not federal.
The regular rate is not always the base hourly wage. Non-discretionary bonuses and shift differentials paid on a regular basis must be folded in first, and the premium is calculated on that recomputed rate.
This calculator applies the federal weekly rule. Work 45 hours and the first 40 pay the regular rate while 5 hours pay time and a half. Entering a number of weeks totals the period.
Where overtime disputes come from
The claim that salaried staff never get overtime is only half right. Exemption requires meeting both a salary test and a duties test. A manager title alone does not exempt anyone; the actual work has to fit the definition.
For tipped roles, multiplying a $2.13 cash wage by 1.5 is unlawful. The premium is calculated on the full regular rate before the tip credit is applied — a rate that must be at least the minimum wage.
Averaging hours across weeks is not permitted either. Overtime is determined week by week. Fifty hours one week and thirty the next still owes ten hours of premium for the first week; the two cannot be averaged to forty.
Weekly pay with overtime
The table applies the federal weekly rule at common hourly rates. Hours past 40 pay 1.5 times the regular rate, so a 50-hour week pays as much as 55 hours at the regular rate and a 60-hour week as much as 70.
A fixed salary does not remove the obligation for a non-exempt employee. The Department of Labor's method divides the week's salary by the hours actually worked to get the regular rate, then adds half that rate for each hour past 40. A $900 weekly salary for 45 hours gives a regular rate of $20.00 and another $50.00 owed for the 5 extra hours. The FLSA does not require extra pay for weekends or holidays as such — only for hours past 40 in the workweek.
| Hourly rate | 40 hours | 45 hours | 50 hours | 60 hours |
|---|---|---|---|---|
| $15.00 | $600.00 | $712.50 | $825.00 | $1,050.00 |
| $20.00 | $800.00 | $950.00 | $1,100.00 | $1,400.00 |
| $25.00 | $1,000.00 | $1,187.50 | $1,375.00 | $1,750.00 |
| $30.00 | $1,200.00 | $1,425.00 | $1,650.00 | $2,100.00 |
| $40.00 | $1,600.00 | $1,900.00 | $2,200.00 | $2,800.00 |
The overtime deduction, 2025 through 2028
For tax years 2025 through 2028, workers covered by the FLSA's overtime rule can deduct the premium part of their overtime from federal taxable income — the half in time and a half, not the whole overtime pay. The cap is $12,500 a year ($25,000 on a joint return), and it shrinks by $100 for each full $1,000 of modified AGI above $150,000 ($300,000 joint).
Only overtime the FLSA requires counts. If your employer pays double time, only the half-time portion needed to meet the FLSA qualifies; overtime paid only because of a union contract or a state's daily rule is not FLSA overtime. You need a valid Social Security number, married couples must file jointly, and Social Security and Medicare still apply to all of the overtime pay. Starting with 2026, employers must report qualified overtime separately on Form W-2.
As an example, at $25.00 an hour with 5 overtime hours a week for 50 weeks, the premium is $3,125 — the amount this calculator shows as deductible when you enter 50 weeks.