Glossary

Time and a Half

Time and a half is a pay rate equal to one and one-half times an employee’s regular rate of pay. It is most commonly used to calculate overtime for nonexempt employees who work more than 40 hours in a workweek.

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Time and a half means paying an employee one and one-half times their regular rate of pay. It is most commonly associated with overtime pay under the Fair Labor Standards Act (FLSA).

Under federal law, covered nonexempt employees generally must receive overtime pay at a rate of at least time and a half for hours worked over 40 in a workweek. For example, if an employee's regular rate is $20 per hour, their time-and-a-half rate would generally be $30 per hour for qualifying overtime hours.

The regular rate used for overtime isn't always the same as an employee's base hourly wage. Certain additional compensation, such as nondiscretionary bonuses, commissions, and shift differentials, may need to be included when calculating the regular rate. That can change the final overtime rate for the workweek.

Federal law generally bases overtime on hours worked over 40 in a workweek, not on working more than eight hours in a single day. Some states have their own overtime rules, however, including daily overtime requirements or other situations where time and a half may apply.

Frequently asked questions

How do you calculate time and a half?

For a straightforward hourly employee, multiply the regular rate of pay by 1.5. For example, a regular rate of $20 per hour would generally result in a time-and-a-half rate of $30 per hour.

When is time and a half required?

Under the FLSA, covered nonexempt employees generally must receive at least time and a half for hours worked over 40 in a workweek. State or local laws may require overtime in additional situations.

Is time and a half based on an employee's hourly wage?

Not always. Overtime is based on the employee's regular rate of pay, which may include certain bonuses, commissions, shift differentials, and other compensation in addition to the base hourly rate.

Is time and a half required for holidays or weekends?

Not under federal law simply because an employee works on a weekend or holiday. Time and a half may still be required if those hours cause a covered nonexempt employee to exceed 40 hours in the workweek, or if state law, an employment agreement, or an employer policy provides additional premium pay.

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