This salaried employee overtime calculator 2026 converts your salary to an hourly-equivalent rate and computes time-and-a-half overtime pay — but first it answers the question that decides everything: are you exempt or non-exempt? Non-exempt salaried employees are owed overtime under the FLSA; exempt employees are not. Enter your salary and overtime hours to see your overtime pay and the OBBBA-qualified premium portion.
The single biggest myth in payroll is "salaried means no overtime." Wrong. Overtime depends on FLSA classification, not pay frequency:
If you are salaried but below the federal salary threshold, or your duties are not genuinely executive, administrative, or professional, you are likely non-exempt and owed overtime.
Three simple steps:
| Annual salary | Hourly rate (÷2,080) | Overtime (1.5x) | Double time (2x) |
|---|---|---|---|
| $40,000 | $19.23 | $28.85 | $38.46 |
| $50,000 | $24.04 | $36.06 | $48.08 |
| $60,000 | $28.85 | $43.27 | $57.69 |
| $75,000 | $36.06 | $54.09 | $72.12 |
| $90,000 | $43.27 | $64.90 | $86.54 |
To be exempt from overtime, an employee must satisfy all three:
| Test | What it means |
|---|---|
| Salary basis | Paid a predetermined, fixed salary not reduced by quality/quantity of work |
| Salary level | Paid at least the federal (or higher state) salary threshold |
| Duties | Primarily executive, administrative, or professional duties |
Fail any test and you are non-exempt — entitled to overtime regardless of being salaried.
Hourly rate: $60,000 ÷ 2,080 = $28.85. Overtime rate (1.5x): $43.27. Working 8 overtime hours in a week earns $43.27 × 8 = $346.16 in overtime. Over a month with 8 OT hours weekly, that is about $1,385 extra.
If you are a non-exempt salaried employee legally earning FLSA overtime, the OBBBA "no tax on overtime" deduction (2025-2028) lets you deduct the premium portion — the extra "half" in time-and-a-half — up to $12,500 (single) or $25,000 (joint). In the $60,000 example, the premium is $14.42/OT hour. Our no-tax-on-overtime calculator estimates the federal tax saved.
Some states require daily overtime (e.g., over 8 hours/day) or double time after a threshold, and set higher salary levels for exemption than federal law. California, for example, has daily overtime and a higher exempt-salary minimum. Always apply the rule most favorable to the employee.
If you are salaried, work over 40 hours, and receive no overtime despite non-exempt duties or sub-threshold pay, you may be owed back overtime. Document your hours, review the duties tests, and consult the Department of Labor Wage and Hour Division or an employment attorney.
It depends on classification. Non-exempt salaried employees must receive overtime (time-and-a-half over 40 hours/week) under the FLSA. Exempt salaried employees — those who meet the salary-basis, salary-level, and duties tests — generally do not. Job title alone does not decide it; the actual duties and salary level do.
First convert salary to an hourly rate: annual salary divided by 2,080 hours (40 hrs × 52 weeks). For a non-exempt salaried worker, overtime is 1.5 times that hourly rate for each hour over 40 in a week. The calculator above does this automatically.
To be exempt under the standard white-collar exemptions, an employee generally must be paid on a salary basis at or above the federal salary-level threshold and primarily perform exempt executive, administrative, or professional duties. Employees paid below the threshold are non-exempt and owed overtime regardless of title. Check current DOL figures, as the threshold is periodically updated.
$60,000 ÷ 2,080 hours = about $28.85/hour. Overtime at time-and-a-half would be about $43.27/hour for a non-exempt salaried employee.
Only if you are properly classified as exempt. If you are non-exempt (below the salary threshold or not meeting the duties test), your employer must pay overtime even though you are salaried. Misclassification can entitle you to back overtime pay.
Yes, if you are a non-exempt salaried employee who legally earns FLSA overtime premium. The OBBBA deduction (2025-2028) covers the qualified overtime premium portion up to $12,500/$25,000. Exempt salaried employees who receive no FLSA overtime have no qualifying premium to deduct.
Salaried pay is typically based on a 40-hour workweek (2,080 hours/year), but exempt employees may be expected to work more without extra pay. Non-exempt salaried employees must be paid overtime for hours over 40 in a workweek.
Exempt employees are excluded from FLSA overtime (must meet salary basis, salary level, and duties tests). Non-exempt employees are covered and must receive time-and-a-half over 40 hours/week, whether paid hourly or salary.