What time and a half actually means for your paycheck
Figures from the May 2025 BLS release
Time and a half means exactly what it sounds like: one and a half times your regular hourly rate. Under the federal Fair Labor Standards Act, covered non-exempt employees must be paid at that rate for every hour worked beyond 40 in a single workweek.
Three details in that sentence do most of the work, and most explanations skip them.
It is per week, not per day
The federal threshold is 40 hours in a workweek — a fixed, recurring period of 168 hours that your employer defines. Working twelve hours on Monday does not trigger overtime by itself. Working 44 hours across the week does. A handful of states add daily overtime rules on top of the federal one; the federal floor does not.
What it is worth
The premium compounds faster than people expect, because it applies only to the hours above 40 — where your marginal hour is worth 50% more than your average one.
| Regular rate | Overtime rate | One 8-hour OT day | Annual at 45 hrs/week |
|---|---|---|---|
| $15.00 | $22.50 | $180 | $37,050 |
| $18.00 | $27.00 | $216 | $44,460 |
| $20.00 | $30.00 | $240 | $49,400 |
| $22.00 | $33.00 | $264 | $54,340 |
| $25.00 | $37.50 | $300 | $61,750 |
| $30.00 | $45.00 | $360 | $74,100 |
| $35.00 | $52.50 | $420 | $86,450 |
| $40.00 | $60.00 | $480 | $98,800 |
At $25 an hour, five overtime hours a week adds $9,750 a year — on a base of $52,000. That is a 19% increase for a 12.5% increase in hours worked.
Who is not covered
The rule applies to non-exempt employees. Executive, administrative, professional, outside sales and certain computer roles can be classified exempt if they meet both a duties test and a salary threshold — and exempt employees get no overtime regardless of hours. Being paid a salary is not by itself what makes someone exempt; the duties matter. If you are unsure how you are classified, the Department of Labor is the authority, not us.
What the base rate should be
Overtime is calculated on your regular rate, which includes non-discretionary bonuses and shift differentials — not just the number on your offer letter. If you earn a shift premium, your overtime rate should reflect it.
To see where an hourly rate lands annually, the converter runs both directions on the standard 2,080-hour basis.