Last updated: 2026-06-02
Quick Answer
To calculate overtime pay: Overtime Pay = Base Rate × 1.5 × Overtime Hours, then add it to regular pay (base rate × regular hours). Under federal law, hours over 40 in a workweek are paid at time-and-a-half. This calculator returns regular pay, overtime pay, double-time, total gross pay, the overtime premium, and a blended hourly rate for job costing. Built for contractors and crew leads, not just payroll.
Inputs you'll need
- Base hourly rate (the straight-time wage)
- Regular hours (usually up to 40 per week)
- Overtime hours (hours over 40)
- Overtime multiplier (1.5 = time-and-a-half)
- Double-time hours and multiplier (optional, for CA/union rules)
Related tools: Labor Cost Calculator, Burdened Labor Rate Calculator, and Contractor Hourly Rate Calculator.
How to use this overtime calculator
- Enter the worker's base hourly rate.
- Split the week into regular hours (up to 40) and overtime hours (over 40).
- Keep the multiplier at 1.5 for federal time-and-a-half, or change it to match your state or contract.
- Add double-time hours if California daily rules or a union agreement applies.
Pricing the whole job, not just one paycheck? Roll the blended rate into our Labor Cost Calculator.
The worker's straight-time wage
Straight-time hours (usually up to 40/week)
Hours over 40 in the week
1.5 = time-and-a-half (federal standard)
Optional: CA/union double-time hours
2 = double-time (default)
Pay Breakdown
Overtime Pay Guide for Contractors
How to calculate time-and-a-half and double-time, and how to keep the overtime premium from eating your margin.
How to Calculate Overtime Pay
Overtime pay equals the base hourly rate times the overtime multiplier times the overtime hours worked. Under federal law (FLSA), non-exempt hourly workers earn at least 1.5x their regular rate for hours over 40 in a workweek.
The math runs in three buckets:
- Regular pay: base rate x regular hours (the first 40 hours in most weeks).
- Overtime pay: base rate x 1.5 x overtime hours, for hours past 40.
- Double-time pay: base rate x 2 x double-time hours, where it applies (California daily rules, some union contracts).
Example: a framer at $30/hr works 48 hours. Regular pay is 40 x $30 = $1,200. Overtime is 8 x $30 x 1.5 = $360. Total gross is $1,560 for the week.
Key Takeaways
- Federal overtime is 1.5x the regular rate for hours over 40 per workweek
- Overtime is calculated by workweek, not by pay period or by day under federal rules
- Double-time only applies under state law (like California) or a union/employer agreement
The Overtime Premium Contractors Forget to Bill
The overtime premium is the extra half-rate (the 0.5x) you pay on top of straight time, and it is a real job cost. I have watched contractors bid a job at straight-time labor, then push the crew into overtime to hit the deadline and quietly eat the difference.
On that $30/hr framer working 8 overtime hours, the premium is $30 x 0.5 x 8 = $120. That is $120 of labor cost that never made it into the bid. Run that across a five-man crew for three weeks and it is real money off your margin.
Two ways to protect yourself:
- Build a labor contingency into the bid when the schedule is tight. If the only way to finish on time is overtime, that cost belongs in the estimate.
- Use the blended rate for job costing. If a worker logs 48 hours at a $31.25 blended rate, cost the job at $31.25/hr, not $30. The blended number is what the labor actually cost you.
Good, fast, or cheap. Pick two. Overtime is how you buy fast, and somebody has to pay for it.
Key Takeaways
- The overtime premium is the extra 0.5x paid above straight time on each overtime hour
- Unbilled overtime premium comes straight out of your profit margin
- Use the blended hourly rate when job costing a week that included overtime
Overtime Rules: Federal vs State
Federal law sets the floor at 1.5x over 40 hours a week, but several states stack stricter rules on top. Where state law is more generous to the worker, the state rule wins.
- Federal (FLSA): 1.5x for hours over 40 in a workweek. No daily overtime, no double-time required.
- California: 1.5x over 8 hours in a day or 40 in a week, and 2x (double-time) over 12 hours in a day or over 8 on the seventh consecutive day.
- Alaska, Nevada, others: daily overtime over 8 hours in some cases. Check your state labor department.
- Union and prevailing-wage jobs: the agreement often sets daily overtime and double-time terms that exceed both federal and state minimums.
Salaried and genuinely exempt employees are handled differently, but most field labor on a construction crew is non-exempt and owed overtime. When in doubt, pay it. A back-wages claim costs far more than the premium.
Key Takeaways
- State overtime rules can require daily overtime and double-time beyond the federal minimum
- California requires double-time over 12 hours in a single day
- Prevailing-wage and union jobs often carry their own overtime and double-time terms
Worked overtime scenarios
Common weekly scenarios so you can sanity-check the math. All assume a 40-hour straight-time week.
| Scenario | Inputs | Total gross pay |
|---|---|---|
| No overtime | $20/hr, 40 reg, 0 OT | $800.00 (blended $20.00/hr) |
| Typical OT week | $30/hr, 40 reg, 8 OT @ 1.5x | $1,560.00 (blended $32.50/hr) |
| Heavy OT | $35/hr, 40 reg, 20 OT @ 1.5x | $2,450.00 (blended $40.83/hr) |
| OT + double-time | $45/hr, 40 reg, 12 OT @ 1.5x, 6 DT @ 2x | $3,150.00 (blended $54.31/hr) |
Overtime and double-time rate by base wage
Quick reference for what each overtime hour costs at common construction wages.
| Base rate | Time-and-a-half (1.5x) | Double-time (2x) |
|---|---|---|
| $20/hr | $30.00/hr | $40.00/hr |
| $25/hr | $37.50/hr | $50.00/hr |
| $30/hr | $45.00/hr | $60.00/hr |
| $40/hr | $60.00/hr | $80.00/hr |
| $50/hr | $75.00/hr | $100.00/hr |
How to Use This Calculator
Enter the Base Hourly Rate
Start with the worker's straight-time wage. This is the regular hourly rate before any overtime multiplier is applied.
Enter Regular and Overtime Hours
Put straight-time hours (usually up to 40 per week) in Regular Hours. Put any hours worked past 40 in Overtime Hours. The calculator handles both buckets separately.
Set the Overtime Multiplier
The federal standard is 1.5 (time-and-a-half). If you owe double-time under state law or a union contract, add those hours and the 2x multiplier in the double-time fields.
Read the Total Pay and Blended Rate
The calculator shows regular pay, overtime pay, total gross pay, the overtime premium (the extra cost above straight time), and the blended hourly rate to use for job costing.
Overtime Pay Formulas
Regular Pay = Base Rate x Regular Hours
Overtime Pay = Base Rate x OT Multiplier x OT Hours
Double-Time Pay = Base Rate x DT Multiplier x DT Hours
Total Gross Pay = Regular Pay + Overtime Pay + Double-Time Pay
Overtime Premium = Base Rate x (OT Multiplier - 1) x OT Hours
Blended Rate = Total Gross Pay / Total HoursWhere:
- Base Rate
- = The worker's straight-time hourly wage
- Regular Hours
- = Straight-time hours, usually up to 40 per workweek
- OT Multiplier
- = Overtime rate factor (1.5 = time-and-a-half, federal standard)
- DT Multiplier
- = Double-time factor (2 = double-time, where required by state/contract)
- Overtime Premium
- = The extra labor cost above straight time, the part contractors forget to bid
Frequently Asked Questions
How do I calculate overtime pay?
Multiply the base hourly rate by the overtime multiplier (1.5 for time-and-a-half) by the number of overtime hours. Add that to regular pay (base rate x regular hours) for total gross pay.
Example: a worker at $30/hr works 40 regular hours and 8 overtime hours. Regular pay is 40 x $30 = $1,200. Overtime is 8 x $30 x 1.5 = $360. Total gross pay is $1,560 for the week.
What is time-and-a-half?
Time-and-a-half means 1.5 times the regular hourly rate. Under the federal Fair Labor Standards Act (FLSA), non-exempt hourly employees must be paid at least time-and-a-half for every hour worked over 40 in a single workweek. A $24/hr worker earns $36/hr for overtime hours.
When does double-time apply?
Double-time (2x the regular rate) is not required by federal law. It applies where state law or an agreement requires it. California requires double-time for hours over 12 in a single workday and over 8 hours on the seventh consecutive day worked. Many union and prevailing-wage contracts also specify double-time terms. Outside those rules, double-time is optional.
How do contractors account for overtime in a bid?
Most overtime gets missed in the estimate. The fix is to build a labor contingency into the bid when the schedule is tight, and to use the blended hourly rate for job costing. If a worker logs 48 hours at a $31.25 blended rate, cost the job at $31.25/hr, not the $30 base rate. Use our labor cost calculator to roll labor into a full job estimate, and the burdened labor rate calculator to add payroll taxes and benefits on top.
Is overtime calculated daily or weekly?
Under federal law, overtime is calculated by the workweek, not by the day. Anything over 40 hours in a fixed 7-day workweek is overtime. Some states add daily overtime: California pays 1.5x for hours over 8 in a single day. A worker can hit daily overtime even in a week under 40 total hours where state daily rules apply.
Does the overtime premium affect my margin?
Yes, and it is the line item contractors forget. The overtime premium is the extra half-rate (the 0.5x) paid on top of straight time. On 8 overtime hours at $30/hr, that premium is $30 x 0.5 x 8 = $120 of labor cost that was never in the bid. Across a full crew over several weeks, unbilled overtime premium quietly eats real profit. Price it into the job or it comes out of your margin.
Related Tools & Articles
Free to Embed on Your Website
Add this calculator to your blog, resource page, or client portal — just copy one line of code. Your visitors get a useful tool, you get more engagement.
EstimationPro AI For Contractors, By Contractors Turn Your Calculations Into a Full Estimate
Go from quick calculations to detailed, line-item estimates your clients will trust.
Why Contractors Choose EstimationPro AI
Estimates in 60 Seconds
AI generates detailed, line-item estimates from basic project details. No more hours on spreadsheets.
Accurate Pricing Data
Built on real contractor pricing and industry cost databases, updated for 2026 market conditions.
Professional Proposals
Send polished PDF estimates with your branding. Clients see a professional contractor they can trust.
Get Paid Faster
Built-in invoicing and Stripe payments. Collect deposits and progress payments directly from estimates.
Related Free Tools
Markup Calculator
Calculate your contractor markup, profit margin, and selling price instantly. Enter your costs and desired markup percentage to get accurate pricing.
Labor Cost Calculator
Estimate total labor costs for construction projects. Factor in hourly rates, crew size, project duration, and labor burden for accurate bids.
Painting Estimate
Calculate painting costs for any room or project. Enter room dimensions to get paint quantity, labor hours, material costs, and total estimates.
Square Footage
Calculate square footage for any shape — rectangles, triangles, circles, and complex rooms. Convert between square feet, yards, and meters.
Profit Margin
Calculate profit margin, markup percentage, and net profit for any job. Enter revenue and costs to see gross margin, net margin after overhead, and markup comparison.
Hourly Rate
Calculate your minimum billable hourly rate based on salary goals, overhead costs, billable hours, and desired profit margin.
Burdened Labor Rate
Calculate the true cost of an employee including payroll taxes, workers comp, health insurance, PTO, and benefits. See the burden multiplier and annual cost.
Overhead Calculator
Calculate your overhead rate, total overhead costs, and overhead per job. Enter expenses by category and annual revenue to see your true overhead percentage.
Generate a full estimate for this same job in 90 seconds.
Snap photos, talk through the scope, drop in your notes. The AI builds line items, labor hours, and a timeline you can send to the client.