Salaried employees earning under $684/week ($35,568/year) are entitled to 1.5× overtime pay under the FLSA. To find your hourly overtime rate: divide your weekly salary by 40, then multiply by 1.5. Use our free calculator at ClockCalc.com to get your exact number in seconds.
Whether you're an hourly worker trying to figure out your annual income with overtime, or a salaried employee wondering if you're even entitled to OT pay — this guide breaks it all down with real formulas, worked examples, and a built-in salary overtime calculator.
The rules differ for hourly vs. salaried workers, and getting them wrong can cost you hundreds of dollars per paycheck. Let's make sure you're getting every dollar you're owed.
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Try Free Overtime Calculator →Who Qualifies for Overtime Pay?
Under the Fair Labor Standards Act (FLSA), most workers in the United States are entitled to overtime pay of at least 1.5× their regular rate for any hours worked beyond 40 in a workweek. However, there are important distinctions between hourly and salaried employees.
Hourly Employees
All hourly, non-exempt employees are entitled to overtime. If you clock more than 40 hours in a workweek, you must receive 1.5× your regular hourly rate for every extra hour. This is straightforward and automatic.
Salaried Employees: The 2-Part Test
For salaried workers, overtime eligibility depends on two factors:
- Salary Level Test: You earn less than $684 per week ($35,568/year)
- Duties Test: Your primary job duties do not qualify as executive, administrative, or professional work
Important: Earning a salary does NOT automatically exempt you from overtime. Only workers who pass both the salary level test AND the duties test are exempt. If your salary is below $35,568/year, you are likely entitled to overtime pay regardless of your job title.
| Worker Type | Salary Level | OT Eligible? | OT Rate |
|---|---|---|---|
| Hourly (all) | Any | ✅ Yes | 1.5× hourly rate |
| Salaried (low) | Under $684/wk | ✅ Yes | 1.5× derived hourly rate |
| Salaried (mid) | $684–$107,432/yr | Depends on duties | 1.5× if non-exempt |
| Salaried (high) | $107,432+/yr | Usually No | Exempt (HCE rule) |
How to Convert Hourly to Annual Salary with Overtime
Many hourly workers want to know: "What is my total annual income if I regularly work overtime?" Here's the formula:
Where OT Rate = Regular Hourly Rate × 1.5
Rate: $22/hour | Regular hours: 40/week | Overtime: 8 hours/week
Regular annual: $22 × 40 × 52 = $45,760
OT rate: $22 × 1.5 = $33/hour
Annual OT: $33 × 8 × 52 = $13,728
Rate: $18/hour | Hours/week: 50 (40 regular + 10 OT)
Regular weekly: $18 × 40 = $720
OT weekly: $18 × 1.5 × 10 = $270
Total weekly: $720 + $270 = $990
How to Calculate Overtime for Salaried Employees
If you're a non-exempt salaried employee, the FLSA requires your employer to calculate your overtime rate based on your equivalent hourly rate. Here's how it works:
Step 2: OT Rate = Regular Hourly Rate × 1.5
Step 3: OT Pay = OT Rate × Overtime Hours
Weekly salary: $680/week ($35,360/year — below exemption threshold)
Hours worked: 47 hours this week (7 hours overtime)
Regular hourly rate: $680 ÷ 40 = $17/hour
OT rate: $17 × 1.5 = $25.50/hour
OT pay: $25.50 × 7 = $178.50
If your employer pays you the same salary every week regardless of how many hours you work, that's a fixed salary arrangement. You may still be owed overtime — the fixed salary only covers 40 regular hours. Extra hours must be compensated at the OT rate.
Exempt vs. Non-Exempt: Which Are You?
🔓 Non-Exempt (OT Required)
- Salary below $684/week
- Hourly workers (most)
- Retail & food service workers
- Administrative assistants
- Many technicians & tradespeople
- Most factory workers
🔒 Exempt (No OT Required)
- Salary above $684/week + exempt duties
- Senior managers & executives
- Licensed lawyers & doctors
- Creative professionals (writers, artists)
- Computer professionals ($27.63+/hr)
- Outside sales employees
Note that job titles don't determine exemption status — job duties do. A worker called "Assistant Manager" who mostly performs the same tasks as hourly employees may still be entitled to overtime pay.
Converting Annual Salary to Hourly Rate
To find your equivalent hourly rate from an annual salary:
Example: $52,000/year ÷ 2,080 hours = $25.00/hour
| Annual Salary | Hourly Rate | 1.5× OT Rate | 2× OT Rate |
|---|---|---|---|
| $35,568 | $17.10 | $25.65 | $34.19 |
| $45,000 | $21.63 | $32.45 | $43.27 |
| $55,000 | $26.44 | $39.66 | $52.88 |
| $65,000 | $31.25 | $46.88 | $62.50 |
| $75,000 | $36.06 | $54.09 | $72.12 |
| $85,000 | $40.87 | $61.30 | $81.73 |
| $100,000 | $48.08 | $72.12 | $96.15 |
State-Specific Overtime Rules for Salaried Workers
While the FLSA sets the federal floor, some states have higher salary thresholds or additional overtime protections for salaried employees:
| State | Weekly Salary Threshold | Annual Equivalent | Notes |
|---|---|---|---|
| Federal (FLSA) | $684/week | $35,568 | Baseline for all states |
| California | $1,200/week (2026) | $62,400 | 2× minimum wage ×40 hrs |
| New York | $1,237.50/week | $64,350 | NYC standard |
| Washington | $1,332.80/week | $69,306 | 1.75× minimum wage ×40 |
| Colorado | $1,057.69/week | $55,000 | Salary threshold indexed |
| Alaska | Hourly rules apply | — | All employees covered |
In California, employers must pay non-exempt salaried employees overtime for hours over 8 in a single day — not just over 40 in a week. See our California Overtime Calculator guide for full details.
3 Common Salary Overtime Mistakes
Mistake 1: Assuming "Salaried = No Overtime"
This is the most widespread misconception. Salary status alone does not exempt anyone from overtime. The salary must be above the threshold AND the employee must perform exempt duties. Millions of misclassified workers are unknowingly leaving OT money on the table.
Mistake 2: Calculating OT on the Wrong Base
Overtime must be calculated on the regular rate of pay, which includes shift differentials, non-discretionary bonuses, and some allowances — not just the base hourly or salary rate. Employers who calculate OT on the base rate only may be underpaying.
Mistake 3: Ignoring State Thresholds
If you work in California, New York, or Washington, your salary exemption threshold is significantly higher than the federal minimum. Even if you're classified as exempt under federal law, your state may still entitle you to overtime pay.
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Calculate My Overtime Pay →Frequently Asked Questions
Do salaried employees get overtime pay?
It depends on your salary level. Under the FLSA, salaried employees earning under $684/week ($35,568/year) are non-exempt and must receive 1.5× overtime for hours over 40/week. Employees above this threshold may be exempt if they also perform exempt duties.
How do I calculate overtime for a salaried employee?
Divide weekly salary by 40 to find the regular hourly rate. Then multiply hours over 40 by that rate × 1.5. Example: $800/week ÷ 40 = $20/hr. 5 OT hours = 5 × $20 × 1.5 = $150 overtime pay.
How do I convert hourly pay to annual salary with overtime?
Annual income = (Regular hourly rate × 40 × 52) + (OT hours per week × hourly rate × 1.5 × 52). Example: $20/hr, 45 hours/week → $41,600 + $7,800 = $49,400/year.
What is the salary threshold for overtime exemption in 2026?
As of 2026, the FLSA salary threshold remains $684/week ($35,568/year). Employees earning below this must receive overtime pay. Highly compensated employees earning $107,432+ are generally exempt. California, New York, and Washington have higher thresholds.
Can my employer average hours across multiple weeks to avoid paying overtime?
No. Under the FLSA, overtime is calculated on a workweek basis — seven consecutive 24-hour periods. Employers cannot average hours across two weeks to avoid overtime. Each workweek stands alone.
For more on overtime rules and calculators, see our guides on How to Calculate Overtime Pay, California Overtime, and Texas Overtime.