Work out one week’s overtime pay the way the federal rules do: find the regular rate (including nondiscretionary bonuses), then add the overtime premium for hours over 40.
The calculation
- Straight-time pay = all hours × hourly rate
- Regular rate = (straight-time pay + nondiscretionary bonus) ÷ all hours
- Overtime premium = overtime hours × regular rate × 0.5
- Gross pay = straight-time pay + bonus + overtime premium
Example: 45 hours at $20 with a $90 attendance bonus. Straight time is $900, the regular rate is ($900 + $90) ÷ 45 = $22.00, the overtime premium is 5 × $22 × 0.5 = $55.00, and gross pay is $1,045.00.
For several pay rates, 8/80 schedules or state daily overtime, use the overtime calculator.
Frequently asked questions
Why does a bonus change overtime pay?
Nondiscretionary bonuses — promised for attendance, production or similar — are part of the regular rate under the FLSA, so overtime hours are paid at a higher rate when a bonus is earned (29 CFR 778.208–778.210).
Is overtime 1.5 times the hourly rate?
It is 1.5 times the regular rate, which equals the hourly rate only when there are no bonuses or other pay. The worksheet handles both cases.
Does this include state overtime rules?
No. It applies the federal weekly rule. States such as California also require daily overtime and double time.