Calculate time-and-a-half and double-time: per hour, per week, or across the whole year.
Under the FLSA, non-exempt employees must earn at least 1.5× their regular rate for hours worked beyond 40 in a week. Some states (e.g. California daily OT) are stricter. Estimates only — not tax advice.
How overtime is calculated
Federal law (the Fair Labor Standards Act) requires at least 1.5× your regular hourly rate for every hour past 40 in a single workweek. At $25/hour that is $37.50 — so five overtime hours a week add $187.50 weekly, or $9,750 across a year. That is money taxed as ordinary income, but it compounds fast.
Is overtime worth it after taxes?
Overtime is taxed at your marginal federal rate (plus FICA), so roughly 60–80% of it reaches your pocket for most workers. It never pushes your whole salary into a higher bracket — only the overtime dollars are taxed at the margin.
Who qualifies for overtime
Non-exempt hourly employees always do. Salaried employees qualify unless they meet the FLSA exemption tests — generally executive, administrative or professional duties plus a salary above the federal threshold ($684/week, with a higher figure from July 2024). Job titles do not decide this; actual duties and pay do.
Daily overtime: states that go further
California, and a handful of others, require overtime per day — typically 1.5× after 8 hours in a day and 2× after 12 — regardless of weekly totals. If you work four 10-hour days in California, four daily-OT hours are owed even though the week is only 40 hours. Check your state’s rules before assuming weekly math applies.
Frequently asked questions
What is time and a half for $25 an hour?
$37.50 per overtime hour. Ten OT hours add $375 to that week’s gross pay.
Do salaried employees get overtime?
Exempt salaried employees generally do not; non-exempt salaried employees do. Exemption depends on duties and the salary threshold.
Is overtime taxed more?
It is withheld at a higher supplemental rate sometimes, but the actual yearly tax treats it as ordinary income — you may get the excess back at refund time.
What is double time?
2× your regular hourly rate. Federal law does not require it, but some states (e.g. California after 12 hours/day) and some union contracts do.
Do bonuses affect my overtime rate?
Nondiscretionary bonuses must be factored into the regular rate, which can raise your overtime rate. Discretionary gifts and pure server tips do not count.
Can my employer average hours over two weeks?
No for most workers — the FLSA measures each workweek separately. Only hospitals with approved 8/80 plans may average differently.