Time and a half is the standard overtime rate in the United States. The Fair Labor Standards Act requires covered, non-exempt employees to be paid at least one and one-half times their regular rate for hours worked over 40 in a workweek. Double time (2 times) is not required by federal law, though some states and employers use it.
Formula
overtime rate = regular rate × 1.5
overtime pay = overtime rate × overtime hours
Example
At a regular rate of $16 an hour, time and a half is $16 × 1.5 = $24 an hour. Six overtime hours pay 6 × $24 = $144, which is $48 more than the same six hours at the regular rate ($96). That extra $48 is the premium, the "half" in time and a half. It is the part the overtime deduction covers.
The time and a half calculator gives the rate for any wage, and the guide to calculating overtime pay shows full-week examples with bonuses and salaries.
Common mistakes
- Applying 1.5 to every hour in the week instead of only hours over 40.
- Using the base wage when a nondiscretionary bonus raises the regular rate.