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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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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.
Authoritative Sources
- 29 CFR Part 778 — Overtime Compensation (eCFR): The controlling federal regulation defining the regular rate of pay and mandatory overtime premium requirements for nonexempt employees.
- U.S. DOL Wage and Hour Division — State Minimum Wage Laws: The authoritative database of state-level wage floors applied in the effective rate (Reff) calculation.
- Fair Labor Standards Act (FLSA): The foundational federal statute governing minimum wage, overtime pay, and recordkeeping requirements for most private-sector and government employers in the United States.
Reference