How Overtime Pay Is Calculated: FLSA Rules, 1.5x Multipliers & Timesheet Math

Under the Fair Labor Standards Act (FLSA) in the United States and equivalent labor laws worldwide, non-exempt employees must receive overtime pay for hours worked over 40 in a workweek.

The Standard Overtime Formula

$$\text{Total Gross Pay} = (\text{Regular Hours} \times \text{Base Wage}) + (\text{Overtime Hours} \times \text{Base Wage} \times 1.5)$$

Example Calculation:

If an employee earning $25.00/hour works 48 hours in a week:

• Regular Pay: $40 \text{ hrs} \times \$25.00 = \$1,000.00$
• Overtime Rate: $\$25.00 \times 1.5 = \$37.50 / \text{hr}$
• Overtime Pay: $8 \text{ hrs} \times \$37.50 = \$300.00$
• Total Gross Earnings: $\$1,300.00$