How overtime pay works in the US, UK and Europe

To calculate overtime pay, multiply the hourly rate by the overtime multiplier (1.5 for time and a half, 2 for double time) and then by the overtime hours. At $20 an hour, 5 hours at time and a half is 20 × 1.5 × 5 = $150 on top of regular pay. In the US, federal law requires time and a half for non-exempt employees after 40 hours in a workweek. Check your own numbers with the overtime calculator.

Overtime sounds simple: work more hours, earn more money. In practice, the rules depend on where you work, how you are paid and what your contract says. This guide explains the main rules in the US, the UK and Europe, with worked examples you can check in our free overtime pay calculator.

Time and a half and double time

"Time and a half" means 1.5 times your normal hourly rate. If you earn $18 an hour, each overtime hour pays $27. "Double time" means twice your normal rate, so $36 an hour in the same example. Some contracts also use other multipliers, such as 1.25 for evening work or 1.33 for Saturdays.

The US: the 40-hour rule

Under the federal Fair Labor Standards Act, non-exempt employees must receive at least time and a half for every hour over 40 in a workweek. The workweek is a fixed seven-day period, and each week stands alone: you cannot average 35 hours one week with 45 the next to avoid overtime.

Example: Maria earns $22 an hour and works 46 hours. Her regular pay is 40 × $22 = $880. Her overtime is 6 × $22 × 1.5 = $198. Her gross pay for the week is $1,078.

California and other states

Some states go further than federal law. California requires time and a half after 8 hours in a day and double time after 12, as well as special rules for the seventh consecutive day of work. A 10-hour shift in California earns 2 hours of overtime even if the weekly total stays under 40. Alaska, Nevada and Colorado also have daily overtime rules in some situations, so check your state's labor department.

Exempt and non-exempt employees

Not every US worker is entitled to overtime. Many salaried employees in executive, administrative and professional roles earning above a set salary level are "exempt". Job titles alone do not decide this: the actual duties and the salary do. If you think you are wrongly classed as exempt, the Department of Labor's Wage and Hour Division can help.

The UK: your contract decides

There is no legal right to extra pay for overtime in the UK. Your employment contract sets whether overtime is paid and at what rate. Two legal limits still apply: your average hourly pay across all hours worked must not fall below the National Minimum Wage, and the Working Time Regulations limit your average working week to 48 hours unless you choose to opt out in writing.

Europe: national rules and collective agreements

The EU Working Time Directive caps average working time at 48 hours a week, including overtime, but leaves overtime pay to each country. In many countries, collective agreements set the rates, often 25 to 50 percent extra, sometimes with time off in lieu instead of money. Check your contract and the agreement that covers your sector.

How to check your payslip

1. Write down the hours you worked each day of the pay period.
2. Find your hourly rate, or work it out from your salary.
3. Apply the overtime rules for your state, country or contract.
4. Compare the gross amount with your payslip before tax and deductions.

The overtime calculator does steps 2 to 4 for you, shows the formula, and saves the result as a PDF you can take to your payroll team. If you invoice clients for extra hours as a freelancer, add them as a separate line in the invoice generator.

This article is general information, not legal advice. Overtime rules change, so check current guidance from your government or a qualified adviser for your situation.

Frequently asked questions

What is overtime pay?

Pay for hours worked beyond a set limit, usually 40 hours a week in the US or the hours in your contract elsewhere. It is often paid at a higher rate, such as 1.5 times the normal hourly rate.

How do you calculate time and a half?

Multiply the hourly rate by 1.5. At $18 an hour, time and a half is $27 an hour, so 4 overtime hours earn $108.

How do you calculate double time?

Multiply the hourly rate by 2, then by the double-time hours. US federal law does not require double time, but California requires it after 12 hours in a workday, and some contracts include it.

Is overtime calculated on basic or gross pay?

Under US law the regular rate includes most pay for the work, such as non-discretionary bonuses and shift premiums, not just the base rate. Elsewhere, your contract or collective agreement usually says which pay the overtime rate is based on.

Do salaried employees get overtime?

In the US, salaried workers are still owed overtime unless they pass the exemption tests on salary level and job duties. Being paid a salary does not by itself make someone exempt.