How to calculate overtime
Start with worked minutes, not scheduled hours. Then apply the daily and weekly threshold that actually governs the employee’s workweek.
Basic weekly method
- Total compensable work time for the defined workweek.
- Keep the first 40 hours regular under the federal baseline.
- Allocate hours above 40 to overtime at the applicable multiplier.
Daily rules change the sequence
California and some other jurisdictions can allocate daily overtime first. Weekly overtime should apply only to remaining regular hours—otherwise the same hour is counted twice.
Official references: US Department of Labor overtime and California DLSE overtime FAQ.