Most overtime math stops at "time and a half." Multiply the hourly rate by 1.5, multiply by the overtime hours, done. That's correct as far as it goes, but it quietly assumes the hourly rate is the only thing an employee earned that week. The moment a non-discretionary bonus enters the picture, a per-unit bonus, an attendance bonus, a shift differential paid as a bonus, the FLSA requires a recalculation most payroll shortcuts skip entirely.
Why a Bonus Changes the Regular Rate
The FLSA defines overtime as 1.5 times an employee's "regular rate," and the regular rate is defined as total compensation for the week divided by total hours worked, not simply the hourly wage on the offer letter. A non-discretionary bonus is compensation for that week's work, so it has to be added into the numerator of that division before overtime is calculated. That means the bonus gets spread across every hour worked that week, including the regular hours, which produces a blended rate that can land above or below the base hourly rate depending on the bonus size relative to total pay.
Worked Example: A $100 Bonus That Lowers the Regular Rate
Take an hourly employee at $20/hour, a standard 40-hour week, 48 hours actually worked, a 1.5x multiplier, and a $100 non-discretionary bonus for that week:
- Regular hours: min(48, 40) = 40. Overtime hours: 48 − 40 = 8.
- Regular earnings: 40 × $20 = $800.
- True regular rate: ($800 + $100) ÷ 48 total hours = $900 ÷ 48 = $18.75/hour.
- Overtime pay: 8 × $18.75 × 1.5 = $225.00.
- Total pay: $800 + $100 + $225 = $1,125.00.
Notice the counterintuitive part: the true regular rate, $18.75/hour, is lower than the $20/hour base rate, even though the bonus made total pay higher. That happens because the $100 bonus is divided across all 48 hours worked, not just the 40 regular hours, which pulls the blended rate down below the base wage rate. A calculation that instead applied the bonus only to overtime hours, or ignored it in the rate calculation entirely, would understate the true regular rate and shortchange the overtime pay owed. Getting this one division right, dividing by total hours worked rather than by regular hours or by some other figure, is the single detail most manual paycheck math gets wrong.
What This Calculator Does Not Cover
This tool models the federal weekly overtime standard only: hours beyond 40 in a single workweek at 1.5x (or the 2x double-time option you can select). Some states layer additional rules on top of the federal model, most notably a daily overtime threshold, commonly after 8 hours in a single day, that can trigger overtime pay even in a week that totals fewer than 40 hours. This calculator does not simulate daily thresholds, seventh-consecutive-day rules, or other state-specific wage-and-hour provisions, so treat its output as the federal floor, not necessarily your full legal entitlement if your state goes further.
For the full picture of what a paycheck looks like after taxes and other deductions, pair this tool with the Paycheck Calculator, which breaks a gross pay figure down to net take-home pay. If you want to estimate how a heavier overtime week affects your income tax withholding for the year, the Tax Withholding Calculator is the more relevant next step.
Further reading: U.S. Department of Labor — Overtime Pay and Wikipedia — Fair Labor Standards Act.
Disclaimer: This calculator models the federal FLSA weekly overtime standard for educational purposes only and does not account for state-specific daily overtime thresholds, exemption status, or every wage-and-hour rule that may apply to your situation. It is not legal or payroll advice. Consult your state labor department, payroll provider, or a qualified employment attorney for guidance on your specific circumstances.