Overtime Calculator
Calculate overtime pay instantly. Enter weekly hours for standard FLSA time-and-a-half, or break down hours by day to apply California's daily overtime and double-time rules. Includes 2025 No Tax on Overtime deduction estimate.
| Category | Hours | Rate | Pay |
|---|
Only the "half" portion of time-and-a-half overtime qualifies. Max deduction: $12,500/year single, $25,000 joint. For tax years 2025–2028. Not tax advice — consult a professional.
📋 Table of contents
Overtime pay formula
Federal FLSA overtime rules
The Fair Labor Standards Act (FLSA), enacted in 1938, requires covered non-exempt employees to receive overtime pay at 1.5× their regular rate for all hours worked over 40 in a workweek.
- Workweek definition: A fixed, recurring period of 168 hours (seven consecutive 24-hour periods). It does not need to align with the calendar week.
- No daily threshold: Federal law only counts weekly totals. Working four 10-hour days (40 hours total) triggers no federal overtime.
- No double time requirement: The FLSA only mandates 1.5× — never 2×. Double time is purely a state or contractual matter.
- No hour limits: There's no cap on how many hours an adult employee can be required to work, as long as overtime hours are properly paid.
- Cannot be waived: An agreement between employer and employee to skip overtime pay is not legally enforceable.
California daily overtime & double time
California has the most comprehensive overtime protections in the United States, going well beyond federal FLSA requirements:
| Threshold | Multiplier | Applies To |
|---|---|---|
| Hours 1–8 (daily) | 1× | Regular rate |
| Hours 9–12 (daily) | 1.5× | Daily overtime |
| Hours 12+ (daily) | 2× | Daily double time |
| 7th consecutive day, first 8 hrs | 1.5× | Weekly rest day premium |
| 7th consecutive day, hours 8+ | 2× | Weekly rest day double time |
| Over 40 hrs/week | 1.5× | Federal weekly OT (if higher than daily) |
Other states with daily overtime: Alaska requires 1.5× after 8 hours/day. Nevada requires 1.5× after 8 hours/day if paid less than 1.5× minimum wage. Colorado requires 1.5× after 12 hours/day. All other states follow federal rules only (40-hour weekly threshold, no daily rule).
2025 "No Tax on Overtime" deduction
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, introduced a temporary federal income tax deduction for qualified overtime compensation, effective for tax years 2025–2028.
- What qualifies: Only the premium "half" portion of FLSA time-and-a-half overtime. If double-time was paid, only 25% of that overtime (the "half" equivalent) qualifies.
- Deduction limit: Up to $12,500/year for single filers, $25,000 for joint filers.
- Income phaseout: Reduced if MAGI exceeds $150,000 single / $300,000 joint.
- Payroll taxes unaffected: This deduction only applies to federal income tax — Social Security and Medicare withholding are unchanged.
- State-mandated OT excluded: Overtime required by state law beyond FLSA minimums (e.g. California daily OT) does not count as "qualified" for this federal deduction — only FLSA-required overtime qualifies.
Exempt vs non-exempt employees
Only non-exempt employees are legally entitled to overtime pay. Whether an employee is exempt depends on both salary level and job duties:
| Test | 2025 Federal Threshold |
|---|---|
| Minimum salary (EAP exemption) | $684/week ($35,568/year) |
| Highly compensated employee (HCE) | $151,164/year |
| Duties test | Must perform exempt executive, admin, or professional duties |
Common exempt categories include executive, administrative, professional, outside sales, and certain computer-related roles under 29 CFR Part 541. Salary alone never determines exemption — both the salary threshold AND the duties test must be satisfied.