The federal overtime rule
The Fair Labor Standards Act requires employers to pay non-exempt employees at least one and a half times their regular rate for every hour over 40 in a workweek. A workweek is any fixed run of seven days (168 hours) your employer sets; it does not have to start on Monday, and hours cannot be averaged across two weeks. Federal law does not require extra pay for weekends, holidays or long days as such, only for the hours over 40 in the week.
How the regular rate works
Your regular rate is not always your hourly wage. Non-discretionary bonuses, such as attendance, production or shift bonuses and most commissions, are added to your straight-time pay and divided by all the hours you worked. Overtime is then paid at 1.5 times that higher rate. The calculator shows this as straight-time pay for every hour plus an overtime premium of half the regular rate for each hour over 40. Gifts and truly discretionary bonuses do not count.
Double time and state rules
Double time is not required by federal law, but some states and many union contracts require it. California, for example, also has daily overtime: time and a half after 8 hours in a day and double time after 12. Where state law is more generous than federal law, the more generous rule applies. Enter any hours your employer pays at 2× in the double-time box; the calculator will not pay those hours twice.
Who is exempt
Some salaried employees are exempt from overtime. For the common executive, administrative and professional exemptions, they must be paid a salary of at least $684 a week ($35,568 a year) and mainly do work that meets the duties tests. The Department of Labor returned to this level after a court threw out its 2024 rule. Job titles do not decide it: an “assistant manager” who mostly stocks shelves may still be owed overtime. Some states set a higher salary level.
Overtime is taxed like the rest of your pay, although the higher paycheck can make withholding look heavier that week. A temporary federal deduction for part of qualified overtime pay applies for 2025 to 2028; ask a tax preparer whether you qualify.
Sources
Figures last checked against these sources on November 4, 2026. This tool gives an estimate for planning, not tax, legal or financial advice.