If you’re an employer, payroll timesheet calculations are essential to the compliance and profitable operation of your business. If you are an employee, understanding how the time and a half calculator works is important, as this determines your weekly take-home money.
Time and a half wages are typically paid for overtime, holidays, or under certain job circumstances and are mandated by FLSA.
The FLSA provides that non-exempt employees shall receive 1.5 times (time and a half) their regular hourly wage for hours worked in excess of 40 in a workweek.
Roughly 80 million workers in the U.S. qualify for FLSA overtime protections, so it’s important that businesses get these calculations right.
Whether you’re determining how to calculate time and a half pay for hourly employees, salaried workers, or holiday shifts, accuracy in overtime calculations is essential so that every employee gets their due compensation for hard work and the employer stays compliant with federal and state laws.
But good overtime pay—compliant, and slightly beyond that—helps build trust between the worker’s organization and its people.
If you’re a business owner or hourly worker, or someone who’d like to know the formula for time and a half on holidays, it’s all here. We are going to explain everything you need to know about how to calculate time and a half on a salary, as well as unlikely situations such as how to work out double time and a half.
What Is Time and a Half?
Time and a half is the practice of paying employees 1.5 times their regular hourly rate for overtime hours worked. This is established by federal law (the FLSA) for nonexempt employees when they work more than 40 hours in a week.
It ensures workers get properly compensated for any extra time and effort spent above their regular work schedule.”
If, for example, an employee makes $20 per hour as a base wage, his or her time and a half pay would be $30 per hour ($20 x 1.5).
If they put in 5 hours of overtime, it would be worth an extra $150 ($30 × 5).
Tip! Doing the payroll on paper is slow and prone to errors, especially with differing amounts of overtime. Some software, like InvoiceFly’s Time Tracking Software, works to simplify this by automatically tracking hours. They can also be used to calculate overtime and create professional invoices with the help of customizable templates.
Beyond Standard Overtime
Time and a half is not just for overtime. Some companies pay time-and-a-half when their employees work on holidays, weekends, or at special events. For instance:
A restaurant might give servers time and a half to work on Christmas Day as an enticement.
A retail store might use it during the busiest holiday shopping months at certain times of day to convince employees to work more hours.
The practice not only rewards workers who are on the job during less desirable shifts but is also a morale booster and talent retention strategy in fields where flexibility and availability matter.
Time and a half is so key in leveling the playing field for the 80 million workers that are under overtime protections from the U.S. Department of Labor.
Who Gets Time and a Half?
Who is eligible for time and a half varies depending on federal and state laws, as well as company policy. Here’s a breakdown:
1. Nonexempt Employees
If you’re a regular hourly employee, you are almost certainly nonexempt under the FLSA. That means when you work more than 40 hours in a week, you are eligible to receive time and a half pay. Overtime pay is 1.5 times your regular hourly pay.
A warehouse worker making $18/hr would make $27/hr in overtime.
Salaried workers, such as executives or professionals, are generally treated as exempt and not eligible for overtime. For these positions to be exempt from FLSA rules, they have to meet criteria—such as making over a certain salary and having specific job duties.
2. Holiday Pay
The FLSA does not demand employers pay time and a half for working holidays. But: Many employers offer it as a perk to attract and retain workers, and some businesses even double-time holiday shifts.
Example: A retail worker making $15/hour could earn $22.50 per hour (time and a half) by working on Thanksgiving or Christmas.
3. State-Specific Rules
Some state overtime laws are stricter than federal guidelines, providing workers with added protections.
- California: Employees are paid time and a half for working overtime over 8 hours in a day or 40 hours in a week. Double time kicks in after working 12 hours in a single day.
- Nevada: Time and a half after 8 hours in a day, unless the employee opts for four days of work of 10 hours each.
- Colorado: Twenty-four consecutive hours of “zero unhired time” off in each workweek.
Tip: To remain compliant, verify with your state’s labor laws, or speak with a payroll professional since overtime regulations differ by location.
How To Work Time and a Half?
It’s fairly easy once you break it down into a few simple steps. We’ll cover how to do this for hourly and salaried employees, including some real-world examples to help illustrate how it works.
1. Determine the Employee’s Hourly Rate
- Hourly Employees: Their general hourly rate is your base.
- Full-time Salaried Employees: Divide the salary annually by the number of total hours worked in a year (40 hours per week * 52 weeks).
Example (Hourly Worker):
- If you make $20/hour, that is the base rate at which overtime would be calculated.
Example (Salaried Worker):
- A salary worker is paid $52,000 per year and works 40 hours a week:
- Work hours per year = 40 hrs/week × 52 weeks/yr=2,080 hrs/year
- Hourly rate = $52,000 / 2080 = $25 per hour
2. Apply the 1.5 Multiplier
Multiply the normal hourly rate by 1.5 to calculate the time and a half rate.
Example:
- Regular hourly rate = $20/hour
- Time and half rate = $20 × 1.5 = $30 per hour
3. Calculate Overtime Pay
This is your time and a half rate:1.5 × Hourly Wage = Time and a Half RateNow you can figure out what you’ve earned in overtime:Multiply the rate by the number of hours over 40 that you work.
Example (Overtime Calculation):
- Time and half time = $30 per hour
- Overtime hours worked = 10
- Overtime = $30 (for which he gets overtime pay) Overtime pay= 10 × $300
Real-World Example
When Sarah works at the mall, she earns $18 an hour. One week, during the holiday rush, she works 47 hours:
- Regular pay = $18 × 40 = $720
- The rate for overtime = $18 × 1.5 = $27/hour
- Overtime pay = $27 × 7 = $189
- Gross pay = $720 + $189 =$ 909
How to Work Out Time and a Half for Holiday Pay?
If you receive time and a half for holiday work, your employer will pay you the same way they do for overtime.
Example (Holiday Pay Calculation):
- Regular hourly rate = $18/hour
- Holiday rate = $18 x 1.5 = $27/hour
- Hours worked = 8
- Total Pay on Holiday = 27 * 8 = $216
Real-World Example
Tom has a job at a restaurant, and on Thanksgiving he is going to work an 8-hour shift where will earn $16 per hour. His holiday pay:
- Holiday rate = $16/hr × 1.5 = $24/hour
- Total holiday pay = 24 x 8 = $192
How to Calculate Time and a Half for Salaried Employees?
For salaried employees, time and a half is just a couple extra steps deeper into calculating out their hourly rate.
1. Find the Hourly Rate
Add up your annual salary by the total hours you work in a year (you generally work 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 = 1.5 time Regular Rate x $28.85 = $43.28/hour
3. Calculate Overtime Pay
Calculate the time and half rate, then multiply it by the hours of overtime worked.
Example:
- Overtime hours worked = 5
- o/t=$43.28*5 =$216.40
Real-World Example
Project manager Anna earns $70,000 and works 45 hours in a busy week.
- Hourly rate = $70,000/2,080 = $33.65 per hour
- Overtime rate = $33.65 × 1.5 = $50.48 per hour
- This would be = $50.48 x 5 = $252.40 Earned of over time pay.
- Wages total = Base Salary ($1,346.15) + Overtime ($252.40) = $1,598.55
How To Compute Double Time and a Half?
Double time and a half is almost unheard of. It is two and a half times an employee’s regular hourly wage. This rate is often utilized on an emergency basis, for certain days, or under certain conditions where the employee’s time and/or effort deserve additional compensation.
As opposed to regular overtime or time and a half, double time and a half is not guaranteed by the federal government through the FLSA. But it is something employers can make available as a policy or contract.
- Calculate 2.5 multiplied by the normal hourly rate.
- Multiply that by the number of hours you worked.
Example:
- Regular rate = $20/hour
- Double time and a half rate = $20 × 2.5 = $50 per hour
- Hours worked = 4
- Total pay = $50 × 4 = $200
Real-Life Example: That Time And a Half Was Everything
Meet Jane, a warehouse worker in Ohio who makes $18/hour. Jane works 48 hours in a busier week, which entitles her to overtime under FLSA regulations.
Here’s how her salary breaks down:
- Regular pay = $18 × 40 = $720
- Overtime pay = 18 X 1.5 = $27
- Overtime pay = $27 × 8 = $216
- Total earnings = $720 + $216 = $936
By accurately computing Jane’s time and a half pay, her employer maintains her compensation at its due level and complies with labor laws.
Mishandling overtime can trigger fines, lawsuits and disgruntled workers. Fair pay for Jane, on the other hand, helps to build trust and set a tone for positive work conditions.
Conclusion
Knowing how to figure time and a half is really important, whether you are an employer running payroll or an employee checking your paystub.
For employers, it means you are in compliance with labor laws, you value your team, and everyone gets paid fairly. For workers, it means that you’re getting paid what’s fair for your duties.
While time and a half pay can be complex to manage, it doesn’t have to be stressful or time-consuming. Fortunately, our Invoice Maker and Invoice Templates can make things easy for you. They give you a way to track hours, figure out overtime, and generate polished invoices without the hassle.
At the end of the day, calculating time and a half isn’t just about numbers that add up—it’s about building a fair and trustworthy workplace.
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FAQs on Time And A Half
Q1. What is time and a half pay?
Time and a half pay is paid to an employee at 1.5 times the employee’s hourly rate for work performed in excess of their regular work schedule hours or, sometimes, different hours as agreed upon by the parties.
Q2. How Do I Calculate Time and a Half?
To find out how much overtime pay is owed, multiply the employee’s hourly rate by 1.5, and then multiply that by the number of hours worked beyond regular time.
Q3. When is time and a half applicable?
Time and a half also usually kicks in when employees work longer than 40 hours per week or as determined by employment laws and company guidelines.