Overtime with Bonus Calculator

Non-discretionary bonuses must be factored into your overtime rate under FLSA. This means your OT pay could be higher than you think. Calculate your adjusted rate here.

✓ Adjusts regular rate for bonus

✓ FLSA-compliant calculation

✓ Shows additional OT premium owed

Overtime pay calculator

Regular pay

$800.00

40.00 hrs × $20.00

Overtime pay

$150.00

5.00 hrs × $30.00 (1.5×)

Total gross pay

$950.00

45.00 hrs total · $21.11/hr effective

Federal (FLSA) — most states

Overtime = hours over 40 in a workweek. Pay at 1.5× the regular rate.

How Bonuses Affect Overtime Pay

Under the FLSA, non-discretionary bonuses (such as production bonuses, attendance bonuses, or promised performance bonuses) must be included when calculating the "regular rate of pay" for overtime purposes.

The Adjusted Rate Calculation

Adjusted Regular Rate = (Total Straight-Time Pay + Bonus) ÷ Total Hours

Additional OT Premium = Adjusted Rate × 0.5 × OT Hours

Example Calculation

An employee earns $20/hr, works 50 hours, and receives a $100 weekly production bonus:

  • Straight-time pay: 50 × $20 = $1,000
  • Plus bonus: $1,000 + $100 = $1,100
  • Adjusted regular rate: $1,100 ÷ 50 = $22/hr
  • OT premium: $22 × 0.5 × 10 = $110
  • Total pay: $1,100 + $110 = $1,210

Discretionary vs. Non-Discretionary Bonuses

Non-discretionary bonuses (promised in advance, tied to performance, attendance, or output) must be included in the regular rate. Discretionary bonuses (year-end gifts, unexpected bonuses at the employer's sole discretion) do not need to be included.

Frequently Asked Questions

Do bonuses affect overtime pay?\u25BE
Yes. Non-discretionary bonuses (production bonuses, attendance bonuses, etc.) must be included in the regular rate of pay for calculating overtime. This increases the OT rate above the base hourly rate × 1.5.
How do I calculate overtime with a bonus?\u25BE
Add the bonus to total straight-time earnings for the period, divide by total hours worked to get the adjusted regular rate, then multiply by 0.5 for each overtime hour to get the additional OT premium owed.