What Is Time and a Half? How to Calculate Time and a Half

If you would like the calculator to calculate your total overtime wages for a given number of overtime hours, enter the number of overtime hours. Finally, the calculator will even estimate your total annual overtime wages based on the number of OT hours you work per pay period, and on your pay period type. The federal government has not introduced any legislature on the subject of holiday pay. If you work Saturdays, Sundays, or holidays, you’re not legally entitled to any special pay. Despite the lack of any legal requirement, holiday pay is commonly offered by most employers, to incentivize workers and Accounting for Marketing Agencies keep them happy.

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• The Department of Labor will adjust this figure every three years starting in July 2027.
• If you are paid by the hour, you can calculate your double pay by multiplying your hourly rate by 2.
• Let’s say you have a nonexempt hourly employee who earns $12 per hour.
• Other exempt positions include some transportation workers, certain agricultural and farm workers, and some live-in employees such as housekeepers.
• Let’s take a look at what the overtime entitlements are in the U.S. and how they can vary by state…
• This provision is designed to ensure fair compensation for overtime work under federal and state labor law.
• Some time and a half obligations only apply to employees who are categorized as non-exempt.

However, all these rules can vary between states and between companies. For this part-time employee earning $12 per hour, their time and a half rate is $18 per hour, and they earned 17 time and a half $90 for working 5 hours of overtime. Use our overtime calculator to see how your earnings change with various overtime hours at $17/hour. Learn the key differences between exempt vs nonexempt employees, how to classify them correctly, and avoid costly misclassification penalties.

• When calculating time and a half, you must include non-discretionary bonuses and commissions in the regular rate of pay.
• Time and a half pay compensates employees at 50% more than their regular hourly rate for every overtime hour worked.
• The first step is calculating the worker’s total earnings without time and a half pay.
• No permit is required to work on New Year’s Day, Labor Day, Memorial Day, or Columbus Day, but workers must be paid time and a half.
• Multiply your employee’s overtime hours (8 hours) by their overtime hourly rate ($10.42).
• Understanding how to calculate overtime in everyday situations is essential for processing payroll accurately.

How does overtime pay work?

The requirement applies to full-time and part-time workers, ensuring fair compensation regardless of extra hours worked. While federal law only requires time and a half for overtime, some businesses offer higher rates like double time to incentivize additional work. Time and a half is a pay rate that employers use to compensate nonexempt employees for working overtime hours or special shifts (such as federal holidays or designated holidays). When you earn time and a half, you receive your regular hourly wage plus an additional 50% of that rate. Time and a half an employee’s regular rate of pay for each hour worked over 40 in a workweek is the federal overtime pay rate for employees who are nonexempt under the Fair Labor Standards Act (FLSA).

How to calculate time and a half for hourly employees

Each role must pass specific duty tests to qualify for an exemption. Other exemptions exist, such as those for farmworkers and certain seasonal or recreational businesses. The FLSA narrowly defines exemptions, so employers should refer to the income summary DOL for more specific guidelines.

This provision is designed to ensure fair compensation for overtime work under federal and state labor law. Some time and a half obligations only apply to employees who are categorized as non-exempt. Exempt employees are typically in salaried executive or administrative roles and are not entitled to overtime. Say your employee earns $1,000 a week and their salary covers all hours worked, no matter how many hours they work. When it comes to calculating time and a half for salaried employees, there are two methods you can use. If an employee’s primary duty is making sales, they are exempt.

• Always verify compliance with federal and local employment laws.
• Employers can’t average time between weeks, meaning an employee who works 60 hours one week and 20 hours the next is still owed time and a half for their overtime during the first week.
• If no hours were entered in the top section of the calculator the field will return N/A (not applicable).
• Pay Period – You have the option to choose how often you get paid.With the above information, the overtime calculator will calculate the amount of money you make each week, overtime pay, and your total pay.