How to calculate overtime pay: daily vs weekly overtime

The basic formula

Overtime pay = overtime hours × your regular hourly rate × the overtime multiplier. In the U.S., the federal Fair Labor Standards Act (FLSA) requires at least 1.5x the regular rate for non-exempt employees for hours worked over 40 in a workweek. A workweek is a fixed, recurring 7-day period set by your employer — it doesn't have to start on Monday.

Federal law has no daily overtime rule. Some states do: California, for example, requires 1.5x after 8 hours in a workday and 2x after 12 hours, and a few other states have their own daily rules. If both a daily and a weekly rule apply, an hour is generally counted as overtime only once.

Example: four 10-hour days at $15 an hour

You work four 10-hour days — 40 hours in the week. Under a weekly-only rule there's no overtime. Under a daily rule (overtime after 8 hours), 2 hours each day are overtime.

Example: five 9-hour days at $15 an hour

Now you work five 9-hour days — 45 hours. Under the weekly rule, 5 hours are overtime. Under the daily rule, 1 hour each day is overtime — also 5 hours. Because those hours are already overtime, they aren't counted a second time for the weekly rule. Either way: 40 × $15 + 5 × $22.50 = $712.50.

Common mistakes

• Counting unpaid meal breaks as hours worked. A bona fide meal break (typically 30 minutes or more, fully relieved of duty) usually isn't work time; short rest breaks of about 5–20 minutes usually are.
• Averaging over two weeks. Under the FLSA, overtime is figured per workweek — working 30 hours one week and 50 the next means 10 overtime hours, even if you're paid biweekly.
• Using the wrong rate. The "regular rate" can include some extras such as non-discretionary bonuses and shift differentials, not just your base wage.
• Assuming everyone is covered. Some salaried and other exempt employees aren't owed overtime under federal law.

Let Punchly do the math

In Punchly's job settings, choose daily overtime (after 8, 10 or 12 hours), weekly overtime (after 40, 44, 48 or 52 hours), your multiplier (1.25x, 1.5x or 2x) and the day your week starts. Every shift you clock is split into regular and overtime hours, and the pay period report shows them separately — along with any night premium and tips.

Not payroll or legal advice

This guide is general information about tracking hours and estimating pay. It is not payroll, tax or legal advice. Overtime and pay rules differ by country, state, industry and employment agreement. If you're unsure about your situation, check with your employer's payroll team, your state labor department or the U.S. Department of Labor's Wage and Hour Division.