When you work more than your contracted time in a pay period, your employer is obligated to pay you at a higher rate or to convert overtime hours to regular hours and pay you at the normal rate. In most places, you receive overtime after 40 hours. For each hour after 40 you receive credit for 1.5 hours at the normal rate. Some employers give you double time, or two times the regular hours, after some specified number of overtime hours.
Find out your employer's policy on overtime. For example, some employers credit all overtime at 1.5 times the normal hours. Other employers credit double the hours after a specific number of hours (usually 40).
Take your total number of hours worked and subtract 40, and this will give you the number of overtime hours you have worked.
On a calculator, multiply the number of overtime hours by 1.5 if your employer always pays time and a half. This will tell you how many regular hours you are to be credited with.
If your employer gives you credit for double time after 48 hours, subtract eight from your total number of overtime hours. Multiply this number by two to find the number of overtime hours that are credited at double time. Multiply eight by 1.5, which equals 12, and add this to your hours credited at double time.
- Be sure to find your employer's policy before converting overtime hours to regular hours.
- An example of how an employer converts overtime hours to regular hours:
- Your first 40 hours are regular hours. Your next eight hours, overtime, receive 1.5 times your normal hours. After that, you get double time for any more overtime you work. Say you work 52 hours. First, subtract 40 from 52 to get 12. Next, subtract eight from 12 to get four. The eight hours are credited at 1.5 normal hours; the four for double the normal hours.
- Here is the calculation: 40 + 1.5 x 8 + 2 x 4 = 40 +12 + 8 = 60. So you receive your 40 regular hours plus the 20 hours credited from your 12 hours of overtime. Your gross pay should be 1.5 times what it normally is for a week.
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