How to Calculate Time and a Half (With Examples and Formulas)

Overtime pay can get confusing fast. Different rules, different rates, different thresholds depending on where your employees work. But the core calculation stays the same: time and a half means paying 1.5 times the regular hourly rate for overtime hours.

This guide walks through the formula, examples, and common scenarios so you can calculate time and a half accurately every pay period.

What Is Time and a Half?

Time and a half is the standard overtime pay rate in the United States. When non-exempt employees work beyond their standard hours (typically 40 hours per week under federal law), they earn 1.5 times their regular hourly wage for each additional hour.

The term comes from the multiplier: regular pay × 1.5 = time and a half.

Example:

• Regular hourly rate: $20
• Time and a half rate: $20 × 1.5 = $30

An employee earning $20/hour would receive $30 for each overtime hour worked.

The Time and a Half Formula

The calculation has two parts:

Step 1: Calculate the overtime rate

Overtime rate = Regular hourly rate × 1.5

Step 2: Calculate total pay

Total pay = (Regular hours × Regular rate) + (Overtime hours × Overtime rate)

That’s the entire formula. The complexity comes from determining which hours count as overtime—and that depends on federal, state, and sometimes local laws.

Time and a Half Calculation Examples

Example 1: Standard Weekly Overtime

An employee earns $25/hour and works 47 hours in one week.

• Regular hours: 40
• Overtime hours: 7
• Regular rate: $25
• Overtime rate: $25 × 1.5 = $37.50

Calculation:

• Regular pay: 40 × $25 = $1,000
• Overtime pay: 7 × $37.50 = $262.50
• Total weekly pay: $1,262.50

Example 2: Higher Hourly Rate

An employee earns $42/hour and works 50 hours in one week.

• Regular hours: 40
• Overtime hours: 10
• Regular rate: $42
• Overtime rate: $42 × 1.5 = $63

Calculation:

• Regular pay: 40 × $42 = $1,680
• Overtime pay: 10 × $63 = $630
• Total weekly pay: $2,310

Example 3: Minimal Overtime

An employee earns $18/hour and works 43 hours in one week.

• Regular hours: 40
• Overtime hours: 3
• Regular rate: $18
• Overtime rate: $18 × 1.5 = $27

Calculation:

• Regular pay: 40 × $18 = $720
• Overtime pay: 3 × $27 = $81
• Total weekly pay: $801

When Does Time and a Half Apply?

Federal Rules (FLSA)

Under the Fair Labor Standards Act, non-exempt employees must receive time and a half for all hours worked over 40 in a single workweek. The FLSA doesn’t require overtime for:

• Working more than 8 hours in a single day
• Working weekends or holidays (unless those hours push the total over 40)
• Working nights or irregular shifts

Federal law sets the floor. Many states add additional requirements.

State Rules That Differ

Several states have stricter overtime laws:

California: Requires time and a half for hours worked over 8 in a single day, and double time for hours over 12 in a day. Also requires time and a half for the first 8 hours on the 7th consecutive workday.

Alaska: Requires time and a half for hours over 8 in a day for employers with 4+ employees.

Colorado: Requires time and a half for hours over 12 in a day or 40 in a week.

Nevada: Requires time and a half for hours over 8 in a day if the employee earns less than 1.5 times minimum wage.

Always check the overtime laws in states where your employees work. When federal and state laws conflict, the rule that benefits the employee applies.

Who Qualifies for Time and a Half?

The FLSA divides employees into exempt and non-exempt categories:

Non-exempt employees must receive overtime pay. Most hourly workers fall into this category.

Exempt employees don’t qualify for overtime. To be exempt, employees generally must:

• Earn at least $684/week ($35,568/year) on a salary basis
• Perform executive, administrative, professional, computer, or outside sales duties

Job titles don’t determine exemption status—actual duties do. Misclassifying employees as exempt when they should be non-exempt creates significant legal liability.

Double Time vs. Time and a Half

Some situations call for double time (2× the regular rate) instead of time and a half:

• California requires double time for hours worked beyond 12 in a single day
• Some union contracts specify double time for holidays or certain shifts
• Company policies may offer double time as a benefit

Double time follows the same formula structure:

Double time rate = Regular hourly rate × 2

An employee earning $20/hour would receive $40/hour for double time work.

Common Mistakes When Calculating Time and a Half

Mistake 1: Using the Wrong Base Rate

For employees who earn bonuses, commissions, or shift differentials, the “regular rate” for overtime purposes may be higher than their base hourly wage. Non-discretionary bonuses must be factored into the overtime calculation.

Mistake 2: Averaging Hours Across Pay Periods

Overtime is calculated per workweek. You can’t average 50 hours one week and 30 hours the next to avoid overtime pay. Each week stands alone.

Mistake 3: Ignoring State Daily Overtime Rules

If your employees work in California or another state with daily overtime requirements, you must track hours per day—not just per week.

Mistake 4: Miscounting the Workweek

A workweek is any fixed, recurring 168-hour period (7 consecutive 24-hour days). It doesn’t have to start on Monday. But once established, you can’t change it to avoid overtime obligations.

How to Track Overtime Hours Accurately

Manual overtime tracking creates errors. Spreadsheets get messy. Employees forget to log extra hours. Managers miss patterns until payroll is due.

Automated time tracking solves this by capturing work hours as they happen. When the system knows each employee’s schedule and hourly rate, it can flag overtime automatically and calculate time and a half without manual formulas.

An employee overtime tracker should:

• Distinguish regular hours from overtime hours automatically
• Alert employees when they approach overtime thresholds
• Generate reports showing overtime by employee, team, or project
• Feed accurate hours into payroll calculations

When overtime data flows directly into payroll, you eliminate the manual step where most calculation errors occur.

Quick Reference: Time and a Half Rates

Formula: Regular rate × 1.5 = Time and a half rate

Get Overtime Calculations Right Every Time

Calculating time and a half comes down to a simple formula: regular rate × 1.5. The complexity is in tracking hours accurately, knowing which rules apply in your state, and making sure overtime data reaches payroll without errors.

Manual calculations work for small teams with predictable schedules. For everyone else, automated overtime tracking removes the guesswork and keeps you compliant.

Try WebWork free for 14 days and see overtime hours tracked automatically—no spreadsheets required.