Overtime Cost Calculator
Under the Fair Labor Standards Act (FLSA), non-exempt employees must receive overtime pay at 1.5 times their regular rate for hours worked beyond 40 in a workweek. Some states and union contracts require double-time pay for hours beyond certain thresholds (e.g., over 12 hours in a day in California). Overtime costs can escalate rapidly — this calculator helps managers and HR teams project total labor costs when overtime is anticipated.
Calculate Overtime Costs
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Weekly Labor Cost
Does not include employer payroll taxes, benefits burden, or workers' compensation costs, which typically add 20–30% to labor costs. FLSA overtime rules apply to non-exempt employees only.
FLSA Overtime Rules
| Pay Type | Rate | When Required |
|---|---|---|
| Regular | 1.0x base rate | First 40 hours in workweek |
| Overtime | 1.5x base rate | Hours over 40/week (federal); over 8/day in some states |
| Double-Time | 2.0x base rate | State-specific (e.g., CA: over 12 hrs/day or 7th consecutive day) |
References & Methodology
- U.S. Department of Labor (DOL), "Fair Labor Standards Act (FLSA) Advisor," dol.gov. — Federal minimum wage, overtime rules, and exempt vs. non-exempt classification criteria.
- U.S. Bureau of Labor Statistics (BLS), "Employer Costs for Employee Compensation (ECEC)," 2023. — Average benefit costs as a percentage of total compensation (approximately 30–32%).
- Society for Human Resource Management (SHRM), "Benchmarking Reports," shrm.org. — Turnover cost estimates, time-to-fill metrics, and cost-per-hire benchmarks.
- Internal Revenue Service (IRS), "Publication 15 (Circular E): Employer's Tax Guide," 2024. — Payroll tax rates (FICA, FUTA) and withholding calculation methodology.