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How to Calculate Overtime for Hourly Employees

Harvest simplifies overtime calculations for hourly employees with customizable billable rates and seamless time tracking, ensuring compliance with labor laws.

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What will your overtime pay be?

Calculate regular and overtime earnings based on your hours and rate. Supports standard time-and-a-half and double-time multipliers.

$
Standard is 40 hours/week (FLSA threshold)
1.5x
1.5x = time and a half (most common). 2x = double time (CA after 12h, holidays).
Some states require 2x pay after 12 hours/day or on 7th consecutive day.
Total gross pay $0
Regular pay $0
Overtime pay (1.5x) $0
Double-time pay (2x) $0
Effective hourly rate $0

Track overtime hours with Harvest

How this overtime pay calculator works

It splits your pay into regular, overtime, and double-time, then adds them up.

  • Regular pay = hourly rate × regular hours.
  • Overtime pay = hourly rate × multiplier (usually 1.5) × overtime hours.
  • Double-time pay = hourly rate × 2 × double-time hours.
  • Total gross = regular + overtime + double-time pay.

US federal law sets overtime at 1.5× for hours over 40 per week; some states add daily rules.

Calculate Overtime with Harvest

See how Harvest streamlines overtime calculations, ensuring compliance and accurate billing for hourly employees.

Screenshot of Harvest's overtime calculation feature for hourly employees

How to Calculate Overtime for Hourly Employees FAQs

  • To calculate overtime pay, multiply the employee's regular hourly rate by 1.5 to determine the overtime rate. Then, multiply this rate by the number of overtime hours worked. Add this to the regular wages for total earnings.

  • The FLSA defines overtime as any hours worked over 40 in a workweek, requiring at least 1.5 times the regular pay rate. Some states have additional rules like daily overtime, which must also be considered.

  • Common mistakes include miscalculating the overtime rate, not accounting for state-specific laws, and failing to track hours accurately. Using tools like Harvest can help avoid these errors by automating time tracking and calculations.

  • Yes, exempt employees are not entitled to overtime pay under the FLSA, whereas non-exempt employees must be paid overtime for hours over 40 in a workweek. Classification depends on job duties and salary.

  • Varying pay rates complicate overtime calculations. The regular pay rate must be averaged for hours worked before applying the overtime multiplier. Harvest allows setting different rates for various tasks, simplifying this process.

  • Yes, Harvest can track overtime for different job roles by allowing custom tasks with specific billable rates. This flexibility helps ensure accurate overtime calculations across various work scenarios.

  • Harvest integrates with systems like QuickBooks and Xero, facilitating seamless data transfer for payroll processing, including overtime management, ensuring accuracy and compliance.