How to Calculate Hours Worked and Overtime Pay
Whether you are checking a paycheck, filling in a timesheet or paying your first employee, it pays to know how to calculate hours worked and overtime correctly. The math is simple once you know the two common traps: minutes are not decimals, and overtime is based on the week, not the day (in most places).
Step 1: Work out each shift
Subtract the start time from the end time, then subtract unpaid breaks.
Example: a shift from 8:45 AM to 5:30 PM is 8 hours 45 minutes long. With a 30-minute unpaid lunch, you worked 8 hours 15 minutes.
The work hours calculator handles this automatically, including overnight shifts.
Step 2: Convert minutes to decimal hours
Payroll multiplies decimal hours by your rate, so 8 hours 15 minutes is 8.25 hours, not 8.15.
Decimal hours = hours + minutes ÷ 60
| Minutes | Decimal |
|---|---|
| 15 | 0.25 |
| 20 | 0.33 |
| 30 | 0.50 |
| 45 | 0.75 |
Step 3: Total the week
Add up the decimal hours for each day. The time card calculator lets you enter each day's start, end and break.
Step 4: Calculate overtime
Under the U.S. Fair Labor Standards Act, non-exempt employees must be paid at least 1.5 times their regular rate for hours over 40 in a workweek.
Overtime pay = overtime hours × hourly rate × 1.5
Example: at $22 an hour, working 47 hours in a week:
- Regular pay: 40 × $22 = $880
- Overtime: 7 × $22 × 1.5 = $231
- Total: $1,111
Check your own numbers with the overtime calculator.
Things that often trip people up
- Daily overtime: a few states, such as California, also require overtime after 8 hours in a day. Check your state's rules.
- Paid time off: under federal rules, holidays and vacation hours usually do not count toward the 40-hour threshold, although some employers include them.
- Salaried employees: many are "exempt" from overtime, but not all. Exemption depends on salary level and job duties.
- Breaks: short breaks (typically 5 to 20 minutes) are generally paid; genuine meal breaks of 30 minutes or more are usually unpaid.
What to do if your pay looks wrong
- Recalculate using your own record of start and end times.
- Compare with your pay stub, line by line.
- Raise any difference politely with your manager or payroll team, with your records.
- If it is not resolved, the U.S. Department of Labor's Wage and Hour Division and state labor departments can help.
This guide is for general education and planning. It is not personal financial, medical, tax or legal advice. See our disclaimer.
