If you’ve ever worked extra hours beyond your normal schedule, you’ve probably heard the term “time and a half.” But what does it actually mean? How do you calculate time and a half pay correctly? Whether you’re an employee wanting to make sure you’re being paid fairly or an employer ensuring compliance with labor laws, understanding how to calculate time and a half is essential.
In this guide, we’ll break down everything you need to know — from what time and a half means, to how to calculate it for hourly, salaried, and tipped employees.
What Is Time and a Half?
Time and a half refers to the pay rate employees earn for working overtime — usually defined as any hours worked over 40 hours in a workweek under U.S. federal law (Fair Labor Standards Act or FLSA).
When you’re paid “time and a half,” you earn 1.5 times your regular hourly rate for each hour worked beyond your standard 40 hours.
For example:
If your regular pay rate is $20 per hour, then your time and a half pay rate is:
👉 $20 × 1.5 = $30 per hour
So, for each overtime hour, you earn an extra $10 compared to your regular rate.
When Do You Get Time and a Half?
The rules for overtime eligibility depend on where you live and the type of work you do. Under the FLSA, most hourly employees are entitled to time and a half pay for all hours worked beyond 40 hours per week.
However, there are exceptions:
- Exempt employees (like certain managers, executives, or professionals) may not qualify.
- State laws may require overtime after 8 hours per day (e.g., California).
- Union contracts or company policies might offer higher overtime rates.
Always check your state labor laws and employment contract to confirm your specific overtime rules.
The Time and a Half Formula
To calculate time and a half, you can use this simple formula:
Time and a Half Rate = Regular Hourly Rate × 1.5
Then, to calculate total overtime pay:
Overtime Pay = Time and a Half Rate × Number of Overtime Hours
And to find your total weekly pay (including overtime):
Total Pay = (Regular Hours × Regular Rate) + (Overtime Hours × Time and a Half Rate)
Let’s look at an example.
Example: How to Calculate Time and a Half Pay
Scenario:
You work 46 hours in one week, and your regular hourly rate is $18/hour.
- Find your overtime rate:
$18 × 1.5 = $27/hour - Find overtime hours worked:
46 – 40 = 6 overtime hours - Calculate overtime pay:
6 × $27 = $162 - Calculate regular pay:
40 × $18 = $720 - Add them together:
$720 + $162 = $882 total weekly pay
So, you earned $882 for the week — including your time and a half pay for those extra six hours.
How to Calculate Time and a Half for Salaried Employees
If you’re salaried but non-exempt (meaning you qualify for overtime), you can still earn time and a half. Here’s how to figure it out.
- Find your hourly rate:
Divide your weekly salary by 40.
Example: $1,000 weekly salary ÷ 40 = $25/hour - Find your time and a half rate:
$25 × 1.5 = $37.50/hour - Multiply by overtime hours:
If you worked 45 hours: 5 × $37.50 = $187.50 in overtime pay - Add to your regular pay:
$1,000 + $187.50 = $1,187.50 total
So even salaried workers can benefit from time and a half overtime pay — as long as they’re not exempt under labor laws.
Time and a Half for Holiday Pay
Some employers offer time and a half for working on holidays — even if you didn’t exceed 40 hours that week. This isn’t a federal requirement but rather a company policy or union agreement.
For example:
If you make $22/hour and work on Christmas Day at time and a half, you’d earn $22 × 1.5 = $33/hour for that shift.
Always check your company’s holiday pay policy to confirm whether you qualify.
Time and a Half for Tipped Employees
If you earn tips, calculating time and a half is a little trickier.
You must use the full minimum wage (not the lower tipped wage) when calculating overtime.
For instance:
- Federal minimum wage = $7.25/hour
- Tipped minimum wage = $2.13/hour
- Overtime rate = $7.25 × 1.5 = $10.88/hour
Your employer must ensure your total pay (including tips) equals or exceeds $10.88/hour for each overtime hour.
Common Mistakes When Calculating Time and a Half
- ❌ Not including all earnings — Overtime pay must be based on the “regular rate,” which includes bonuses, shift differentials, and commissions.
- ❌ Using the wrong base rate — Some employers mistakenly calculate overtime from the tipped wage or base salary only.
- ❌ Ignoring state laws — Some states have stricter overtime rules, such as daily overtime or double-time pay.
- ❌ Rounding down hours — Always calculate actual hours worked, not rounded figures.
Avoiding these errors ensures employees get fair pay and employers stay legally compliant.
Overtime Pay Calculator (Quick Reference)
| Regular Hourly Rate | Time and a Half Rate | Example (5 OT Hours) |
|---|---|---|
| $15/hr | $22.50/hr | $112.50 |
| $18/hr | $27.00/hr | $135.00 |
| $20/hr | $30.00/hr | $150.00 |
| $25/hr | $37.50/hr | $187.50 |
| $30/hr | $45.00/hr | $225.00 |
Use this chart to quickly estimate your overtime earnings based on your regular rate.
Why Understanding Time and a Half Matters
Knowing how to calculate time and a half isn’t just about math — it’s about knowing your worth and ensuring fair payfor your hard work.
For employees, it helps confirm that you’re getting the overtime pay you deserve.
For employers, it helps maintain compliance, prevent disputes, and build trust with staff.
Being accurate and transparent with overtime calculations benefits everyone.
Final Thoughts
Learning how to calculate time and a half is straightforward once you know the formula. Just remember:
✅ Time and a half = Regular hourly rate × 1.5
✅ Overtime usually applies after 40 hours in a week (but check your state laws)
✅ Always include bonuses and commissions in your regular rate
Whether you’re an hourly worker clocking in extra shifts or an employer managing payroll, understanding overtime payis key to fair compensation and legal compliance.