If you are paid hourly and work more than 40 hours per week, your employer should pay you overtime pay. This can vary, but most employers pay time and a half for any hours over 40 that you work. To make sure you are being paid correctly, it’s important to know how to figure overtime pay for your hourly rate.
Time and a Half
The common expression for overtime pay is “time and a half.” This means that you get an extra 50% on top of your hourly rate, or a total of 150% of your hourly rate, for each hour over 40 you work in a given week.
Not all employers pay time and a half for overtime, and not all begin overtime payments after 40 hours. Your eligibility for overtime pay, and its conditions, should have been explained when you were hired. If you weren’t told or you can’t remember, ask your employer.
Typically, overtime pay is only available to those who are paid on an hourly basis. If you are paid a salary, you probably don’t get overtime pay, no matter how many hours you work. Salaried employees are often referred to as “exempt,” since they are exempt from overtime pay.
How to Determine Your Overtime Pay
Figuring out how much you would make at time and a half is simple.
Calculating Your Overtime Rate
Keep in mind that you will receive your regular rate of pay for the first 40 hours you work in a week. You will get time and a half for hours worked over 40.
Suppose you work 45 hours in a week, and your hourly rate is $10 per hour.
You’ll get $10 per hour for the first 40 hours, or $400 total.
For the remaining 5 hours, you get time and a half, which is $15 per hour. So, your overtime pay will total $75.
For the full week, having worked 45 hours, you’ll earn $475 before taxes.
Examples of Time and a Half Hourly Rates
The example above showed how much a person earning $10 per hour would make if they worked overtime at time and a half. Here are some examples using different hourly rates for a 45-hour week, before taxes.
|Hourly Wage||50% of Hourly Wage||Time and a Half Rate||Wages per 45-Hour Work Week|
Qualifying for Overtime Pay
In most circumstances, you need to work 40 hours in a week in order to get overtime pay for any hours worked above and beyond that number. But check with your employer — in some cases, a full work week may be more or fewer hours than that, and that may affect the number of hours you need to work in order to be eligible for overtime pay.
If you are in a union at work, the union may negotiate the requirements for overtime pay. If this is the case, you can check with your union representative to make sure you understand the rules for overtime pay at your job and to make sure you are being paid accurately.
Overtime pay can be a good way to earn some extra income, and with many companies struggling to find workers, there may be an opportunity for you to work extra hours.