When candidates compare a salaried offer with an hourly plant job, overtime is usually what changes the math. Enter your hourly rate and hours below to see your weekly and yearly pay. If you work in California, switch to the daily tab: it handles daily overtime, double time and the seventh-day rule.
Estimate before taxes. Bonuses and shift differentials can raise your overtime rate (see below). Not legal advice.
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How overtime is calculated
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees must get at least 1.5 times their regular rate for every hour over 40 in a workweek. Federal law has no daily overtime, and weekends or holidays are not overtime by themselves. Only the hours over 40 count.
| Example: $25/hour, 50 hours | Hours | Pay |
|---|---|---|
| Regular pay | 40 × $25 | $1,000 |
| Overtime pay | 10 × $37.50 | $375 |
| Weekly total | 50 | $1,375 |
Your overtime rate is based on your regular rate, not always your base wage. Shift differentials and most non-discretionary bonuses (attendance, production or safety bonuses) are added in, which raises the overtime rate. If your overtime looks low, check whether those were included.
States with daily overtime
| State | Daily rule |
|---|---|
| California | 1.5x after 8 hours a day, 2x after 12 hours. On the 7th consecutive workday: 1.5x for the first 8 hours, 2x after 8. |
| Alaska | 1.5x after 8 hours a day or 40 a week |
| Nevada | Daily overtime after 8 hours applies to lower-wage workers |
| Colorado | Overtime after 12 hours a day or 40 a week |
Every other state follows the 40-hour weekly rule, and some add their own exceptions. Check your state labor department for the details that apply to you.
Who does not get overtime
Exempt employees do not get overtime. To be exempt under federal rules, you generally need a salary of at least $684 a week ($35,568 a year) and job duties that meet an executive, administrative or professional test. Highly compensated employees earning $107,432 or more a year have a shorter duties test. In May 2026 the Department of Labor formally put these 2019 levels back in its rules after courts struck down the 2024 increase. Some states, like California, New York and Washington, set higher salary levels.
A job title alone does not make you exempt. I explain how to tell the difference, and how to read it on an offer letter, in my exempt vs non-exempt guide.
What I tell candidates comparing offers
- Ask how many hours the team really works. During a plant ramp-up, overtime can be a large part of pay for hourly roles. A lower hourly rate with steady overtime can beat a higher salary.
- Ask if overtime is mandatory or voluntary. Steady overtime is great for pay, but it also means long weeks. Know what you are signing up for.
- Compare yearly totals, not hourly rates. Use the salary to hourly calculator to put both offers in the same unit.
Is overtime taxed differently?
Overtime is taxed like regular wages, but there is now a federal deduction for “qualified overtime compensation,” the extra pay above your regular rate. According to the IRS, you can deduct up to $12,500 a year ($25,000 if married filing jointly). It phases out above $150,000 of modified adjusted gross income ($300,000 joint), and you need a valid Social Security number. You can take it whether or not you itemize. Check the IRS guidance or a tax professional for your situation.
FAQ
Is overtime always time and a half?
Under federal law the minimum is 1.5 times your regular rate. Some states and some employers pay double time in certain cases, like California after 12 hours a day.
Do salaried employees get overtime?
Only if they are non-exempt. Being paid a salary does not by itself make you exempt. Your salary level and your duties decide it.
Is weekend or holiday work overtime?
Not under federal law. Weekend and holiday hours only count as overtime if they push you over 40 hours that week, or if your employer’s policy or a state rule says so.
Can my employer give me comp time instead of overtime pay?
Private employers generally cannot replace overtime pay with comp time for non-exempt employees. Comp time instead of overtime pay is mainly allowed for public-sector employers.