How To Calculate Time And A Half: Step-by-Step Guide

How To Calculate Time And A Half

If you’re an employer managing payroll or an employee trying to make sense of your paycheck, understanding how to calculate time and a half is a vital skill. 

Time and a half pay is commonly applied to overtime, holidays, or specific work scenarios and is a key requirement under the Fair Labor Standards Act (FLSA). 

The FLSA states that nonexempt employees must be paid 1.5 times (time and a half) their regular hourly wage for any hours worked beyond 40 in a single workweek. 

Approximately 80 million workers in the U.S. are eligible for FLSA overtime protections, making it crucial for businesses to get these calculations right. 

Whether you’re figuring out how to calculate time and a half pay for hourly employees, salaried workers, or holiday shifts, accuracy ensures fair compensation and compliance with federal and state laws.

Beyond compliance, proper overtime pay builds trust, strengthens workplace relationships, and boosts employee satisfaction. 

Whether you’re a business owner, an hourly worker, or someone curious about how to calculate time and a half for holidays, this guide covers everything. We’ll show you how to calculate time and a half on a salary and even rare cases like how to calculate double time and a half.

What Is Time and a Half?

Time and a half refers to paying employees 1.5 times their regular hourly wage for eligible overtime hours. This practice is a legal requirement for nonexempt workers under the FLSA when they exceed 40 hours in a single workweek. 

It makes sure employees are fairly compensated for the extra time and effort they put in beyond their regular work schedule.

For example, if an employee’s regular hourly wage is $20, their time and a half rate would be $30/hour ($20 × 1.5).

If they work an additional 5 overtime hours, they would earn $150 in overtime pay ($30 × 5).

Tip! Managing payroll manually can be tedious and error-prone, especially with varying overtime hours. Tools like InvoiceFly’s Time Tracking Software streamline the process by automatically logging hours. They also can help calculate overtime and generate professional invoices with customizable templates.

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Beyond Standard Overtime

Time and a half isn’t just for overtime. Many employers voluntarily extend this pay rate to hours worked on holidays, weekends, or during special events. For instance:

  • A restaurant might pay servers time and a half for working on Christmas Day as an incentive.
  • A retail store might use it during peak holiday shopping seasons to encourage employees to work longer shifts.

This approach not only compensates employees for working during less desirable times but also boosts morale and helps retain talent in industries where flexibility and availability are crucial. 

According to the U.S. Department of Labor, paying time and a half has been instrumental in creating fair work environments for the 80 million workers eligible for overtime protections in the U.S.

Who Qualifies for Time and a Half?

Determining who qualifies for time and a half depends on several factors, including federal and state regulations, as well as individual company policies. Here’s a breakdown:

1. Nonexempt Employees

If you’re an hourly worker, you’re likely a nonexempt employee under the FLSA. This means you qualify for time and a half pay when you work more than 40 hours in a week. Overtime pay is 1.5 times your regular hourly rate.

For example, a warehouse worker earning $18/hour would make $27/hour for overtime hours.

Salaried employees, like executives or professionals, are usually considered exempt and don’t qualify for overtime. These roles must meet certain requirements, like earning above a specific salary and having particular job duties, to be exempt from FLSA rules.

2. Holiday Pay

The FLSA doesn’t require employers to pay time and a half for working on holidays. However, many businesses offer it as a perk to attract and keep employees, and some even provide double time for holiday shifts.

Example: A retail employee earning $15/hour might make $22.50/hour (time and a half) for working on Thanksgiving or Christmas.

3. State Specific Rules

Some states have stricter overtime laws than federal guidelines, offering extra protections for workers.

  • California: Employees earn time and a half for working over 8 hours in a day or 40 hours in a week. Double time kicks in after 12 hours in a single day.
  • Nevada: Time and a half applies after 8 hours in a day unless the employee follows a four-day, 10-hour-per-day schedule.
  • Colorado: Overtime is required after 12 consecutive hours of work, regardless of weekly hours worked.

Tip: Check your state’s labor laws or consult a payroll expert to stay compliant, as overtime rules vary by location.

How To Calculate Time and a Half

Calculating time and a half is simple when you break it down into a few easy steps. Let’s explore how to get it right for both hourly and salaried employees, plus some real-world examples to show how it works.

1. Determine the Employee’s Hourly Rate

  • Hourly Workers: Use their standard hourly wage as the base.
  • Salaried Workers: Divide their annual salary by the total number of hours worked annually (usually 40 hours per week for 52 weeks).

Example (Hourly Worker):

  • If an employee earns $20/hour, that’s their base rate for calculating overtime.

Example (Salaried Worker):

  • A salaried employee earns $52,000 annually and works 40 hours per week:
  • Annual hours = 40 × 52 = 2,080 hours
  • Hourly rate = $52,000 ÷ 2,080 = $25/hour

2. Apply the 1.5 Multiplier

Multiply the regular hourly rate by 1.5 to get the time and a half rate.

Example:

  • Regular hourly rate = $20/hour
  • Time and a half rate = $20 × 1.5 = $30/hour

3. Calculate Overtime Pay

Multiply the time and a half rate by the number of overtime hours worked.

Example (Overtime Calculation):

  • Time and a half rate = $30/hour
  • Overtime hours worked = 10
  • Overtime pay = $30 × 10 = $300

Real-World Example

Sarah works in a retail store and earns $18/hour. During the holiday rush, she works 47 hours in one week:

  • Regular pay = $18 × 40 = $720
  • Overtime rate = $18 × 1.5 = $27/hour
  • Overtime pay = $27 × 7 = $189
  • Total pay = $720 + $189 = $909

How To Calculate Time and a Half for Holiday Pay

If your company offers time and a half for holiday work, the calculation follows the same steps as regular overtime pay.

Example (Holiday Pay Calculation):

  • Regular hourly rate = $18/hour
  • Holiday rate = $18 × 1.5 = $27/hour
  • Hours worked = 8
  • Total holiday pay = $27 × 8 = $216

Real-World Example

Tom works at a restaurant and is scheduled for an 8-hour shift on Thanksgiving, earning $16/hour. His holiday pay:

  • Holiday rate = $16 × 1.5 = $24/hour
  • Total holiday pay = $24 × 8 = $192

How To Calculate Time and a Half for Salaried Employees

For salaried employees, time and a half calculations require a few extra steps to determine their hourly rate.

1. Find the Hourly Rate

Divide the annual salary by the total hours worked annually (usually 40 hours per week for 52 weeks).

Example:

  • Annual salary = $60,000
  • Weekly hours = 40
  • Annual hours = 40 × 52 = 2,080
  • Hourly rate = $60,000 ÷ 2,080 = $28.85/hour

2. Apply the Multiplier

  • Time and a half rate = $28.85 × 1.5 = $43.28/hour

3. Calculate Overtime Pay

Multiply the time and a half rate by the number of overtime hours worked.

Example:

  • Overtime hours worked = 5
  • Overtime pay = $43.28 × 5 = $216.40

Real-World Example

Anna, a project manager with a $70,000 salary, works 45 hours during a busy week.

  • Hourly rate = $70,000 ÷ 2,080 = $33.65/hour
  • Overtime rate = $33.65 × 1.5 = $50.48/hour
  • Overtime pay = $50.48 × 5 = $252.40
  • Total pay = Regular salary ($1,346.15/week) + Overtime ($252.40) = $1,598.55

How To Calculate Double Time and a Half

Double time and a half is rare. It is equal to 2.5 times an employee’s regular hourly wage. This rate is typically applied in emergency work, specific holidays, or extreme situations where additional compensation is warranted for the employee’s time and effort.

Unlike regular overtime or time and a half, double time and a half is not federally mandated under the FLSA. However, employers may choose to offer it as a policy or contractual agreement.

  1. Multiply the regular hourly rate by 2.5.
  2. Multiply that rate by the number of hours worked.

Example:

  • Regular rate = $20/hour
  • Double time and a half rate = $20 × 2.5 = $50/hour
  • Hours worked = 4
  • Total pay = $50 × 4 = $200

Real-World Example: Why Time and a Half Matters

Let’s look at Jane, a warehouse worker in Ohio who earns $18/hour. During a busy week, Jane works 48 hours, which qualifies her for overtime under FLSA rules. 

Here’s how her pay is calculated:

  • Regular pay = $18 × 40 = $720
  • Overtime rate = $18 × 1.5 = $27
  • Overtime pay = $27 × 8 = $216
  • Total pay = $720 + $216 = $936

By correctly calculating Jane’s time and a half pay, her employer ensures she is fairly compensated while staying compliant with labor laws. 

Failing to account for overtime accurately could lead to penalties, legal disputes, and unhappy employees. On the other hand, paying Jane fairly builds trust and reinforces a positive work environment.

Final Thoughts About Time And A Half

Understanding how to calculate time and a half is super important, whether you’re an employer handling payroll or an employee checking your paycheck. 

For employers, it keeps you compliant with labor laws, shows you value your team, and ensures everyone gets paid fairly. For employees, it means you know you’re being compensated right for your extra hours.

Managing time and a half pay doesn’t have to be stressful or time-consuming. Our Invoice Maker and Invoice Templates can make things so much easier. They let you track hours, calculate overtime, and create professional invoices without the hassle.

At the end of the day, calculating time and a half isn’t just about getting the math right—it’s about building a fair and trustworthy workplace. 

Ready to simplify your payroll process? 

Give Invoice Fly a try and take the guesswork out of overtime pay!

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Time And A Half FAQs:

Time and a half is calculated by multiplying the regular hourly rate by 1.5.

  • Calculation: $15 × 1.5 = $22.50/hour

This means for every overtime hour worked, the employee earns an additional $7.50 above their regular wage.

To calculate overtime for a week with 45 hours worked:

  • Regular pay: Multiply 40 hours by the regular hourly rate → 40 × $20 = $800
  • Overtime pay: Multiply the extra 5 hours by the time and a half rate ($20 × 1.5 = $30/hour) → 5 × $30 = $150
  • Total pay: Add regular pay and overtime pay. → $800 + $150 = $950

This calculation ensures employees are fairly compensated for their extra time on the clock.

The FLSA doesn’t mandate time and a half for holidays unless overtime hours are worked. However, many employers voluntarily offer time and a half—or even double time—as a perk for holiday shifts. Check your company’s policy to understand holiday pay practices.

Jennifer is a skilled senior copywriter with over 10 years of experience in content strategy, creative, and UX writing and other digital marketing disciplines.

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