About this calculator
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must be paid 1.5× their regular hourly rate for hours over 40 in a workweek. Some states require additional protections — California pays 1.5× over 8 hrs/day and 2× over 12 hrs/day, plus 2× on the 7th consecutive workday. This calculator computes weekly and annualized pay including overtime.
Who qualifies for overtime
Non-exempt employees only. Exemptions cover executive, administrative, professional, and outside-sales workers earning above the FLSA salary threshold (raised in 2024 to ~$58k/yr). If you’re paid hourly, you almost always qualify. If you’re salaried, check your classification — misclassification is one of the most common labor-law violations.
The overtime trap for "salary exempt"
Exempt salaried roles can be asked to work unlimited hours with no extra pay. A $100k exempt salary at 60 hrs/week works out to $32/hr effective — less than many hourly trades. Always negotiate exempt roles against expected hours, not just the salary number.
Annualizing overtime carefully
Bumping a 40-hour-week to 50 hours adds 15 hours of OT pay (10 OT hours × 1.5) — a 37.5% pay boost on the week. Annualized, $40/hr × (40 + 15) × 52 = $114,400 vs $83,200 baseline. Real-world OT is rarely steady though — most workers see seasonal swings. Annualize at the average, not the peak.