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Hours Pay Calculator

Compute gross wages from regular and overtime hours worked. Automatically enforces FLSA rules and your state's minimum wage floor.

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Gross Pay

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How the Hours Pay Calculator Works

The hours pay calculator applies a two-part gross pay formula that reflects the requirements established by the Fair Labor Standards Act (FLSA) and state wage laws. The core formula is:

Gross Pay = (Reff × Hreg) + (Reff × Hot × Mot)

where Reff = max(R, Wmin,state) — the effective hourly rate equals whichever is higher: the entered wage or the applicable state minimum wage.

Variable Definitions

  • Reff — Effective Hourly Rate: The rate used in all pay calculations. If a worker earns $8.00/hr in a state with a $15.00 minimum wage, the calculator substitutes $15.00 automatically to comply with wage law.
  • Hreg — Regular Hours Worked: Straight-time hours in the pay period. Under FLSA, the standard threshold is 40 hours per workweek before overtime rules activate.
  • Hot — Overtime Hours Worked: Hours exceeding the regular threshold that qualify for a pay premium.
  • Mot — Overtime Multiplier: The premium factor applied to overtime hours. FLSA mandates a minimum of 1.5× (time-and-a-half) for covered nonexempt employees. Some contracts and state laws specify 2× (double-time) for holidays or extended shifts.

Step-by-Step Calculation Example

Consider an employee in California earning $18.00/hr who works 45 hours in a single week with the standard 1.5× overtime multiplier. California's minimum wage in 2024 is $16.00/hr, so Reff = max($18.00, $16.00) = $18.00.

  • Regular pay: $18.00 × 40 hours = $720.00
  • Overtime pay: $18.00 × 5 hours × 1.5 = $135.00
  • Total Gross Pay = $720.00 + $135.00 = $855.00

If that same employee's entered wage were $14.00/hr (below the California minimum), Reff becomes $16.00: $16.00 × 40 + $16.00 × 5 × 1.5 = $640.00 + $120.00 = $760.00.

FLSA Overtime Requirements

According to 29 CFR Part 778 — Overtime Compensation, employers must pay at least 1.5 times the regular rate of pay for every hour worked beyond 40 in a single workweek. The regular rate encompasses most compensation forms — hourly wages, salary, piecework earnings, and non-discretionary bonuses — but excludes gifts, vacation pay, and certain premiums. States with stricter daily overtime rules, such as California's 8-hour daily threshold, require employers to apply whichever standard benefits the employee more.

State Minimum Wage Floor

The U.S. Department of Labor State Minimum Wage Laws database tracks wage floors for all 50 states and the District of Columbia. As of 2024, state minimums range from the federal floor of $7.25/hr in states without a higher rate to $17.50/hr in Washington State. The hours pay calculator selects the correct floor for the chosen state and applies it as the wage baseline in Reff, preventing any undercount of legally required earnings.

Gross Pay vs. Net Pay

Gross pay represents total earned wages before any deductions. Net (take-home) pay subtracts federal income tax withholding, FICA contributions (Social Security at 6.2% and Medicare at 1.45%), applicable state income taxes, and voluntary deductions such as health insurance premiums and 401(k) contributions. For most U.S. workers, net pay falls between 65% and 80% of gross pay depending on filing status and benefit elections. This calculator focuses on gross pay because individual tax obligations vary too widely to generalize into a single formula.

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Frequently asked questions

How is gross pay calculated using an hours pay calculator?
An hours pay calculator multiplies the effective hourly rate by regular hours worked, then adds overtime hours multiplied by both the effective rate and the overtime multiplier. For example, an employee earning $20.00/hr who works 45 hours receives $20.00 x 40 = $800.00 in regular pay, plus $20.00 x 5 x 1.5 = $150.00 in overtime pay, for a total gross pay of $950.00.
What overtime rate does the Fair Labor Standards Act require?
The Fair Labor Standards Act mandates a minimum overtime rate of 1.5 times the employee's regular rate of pay for all hours worked beyond 40 in a single workweek. Some employment contracts and state laws — notably California for hours exceeding 12 in a workday — require double-time at 2.0 times the regular rate, and employers must apply whichever standard is more favorable to the employee.
What happens if my hourly wage is below my state's minimum wage?
The calculator automatically replaces any entered wage below the applicable state minimum with the state wage floor. For instance, entering $8.00/hr while working in Washington State (minimum $17.50 in 2024) causes the calculator to use $17.50/hr as the effective rate for all gross pay computations, ensuring every result complies with the U.S. Department of Labor State Minimum Wage Laws.
What is double-time pay and when does it apply?
Double-time pay compensates employees at 2.0 times their regular hourly rate. Under FLSA, double-time is not federally mandated; however, California Labor Code Section 510 requires it for hours beyond 12 in a workday and for all hours on a seventh consecutive workday. Many union contracts and employer policies also specify double-time for holiday shifts. Enter 2.0 as the overtime multiplier in the calculator to compute double-time earnings.
What is the difference between gross pay and net pay?
Gross pay is total earnings before any withholding or deductions. Net pay (take-home pay) is what remains after subtracting federal income tax withholding, Social Security (6.2%), Medicare (1.45%), applicable state income taxes, and voluntary deductions like health insurance and 401(k) contributions. For most U.S. workers, net pay typically represents 65% to 80% of gross pay, depending on individual tax bracket and benefit elections.
How many hours per week are considered regular time before overtime begins?
Under the Fair Labor Standards Act, the federal threshold is 40 hours per workweek. Any hours worked beyond 40 in that seven-day period qualify for overtime pay at a minimum of 1.5 times the regular rate. Several states — including California, Alaska, and Nevada — also impose daily overtime thresholds of 8 hours per workday, meaning hours 9 through 12 in a single day earn time-and-a-half regardless of the weekly total.