How to Track Overtime for Hourly Jobs
Overtime rules can be complex. Learn how to track OT hours to make sure you're getting paid that 1.5x rate.
Understanding Overtime as an Hourly Worker
Overtime pay can significantly boost your earnings – but only if it's tracked correctly. Many workers miss out on overtime pay simply because they don't know the rules or don't track their hours properly.
Let's break down everything you need to know about tracking overtime.
What Is Overtime?
Overtime refers to hours worked beyond a standard threshold, typically paid at a higher rate. The most common structure is:
- Regular hours: Paid at your normal hourly rate
- Overtime hours: Paid at 1.5× your regular rate (time and a half)
- Double time: Some situations pay 2× (less common)
Common Overtime Rules
Federal (US) Standard
- Overtime kicks in after 40 hours per week
- Paid at 1.5× regular rate
- Applies to non-exempt employees
California (US) Rules
- Daily overtime: 1.5× after 8 hours in a day
- Double daily overtime: 2× after 12 hours in a day
- Weekly overtime: 1.5× after 40 hours
- 7th consecutive day: First 8 hours at 1.5×, after 8 hours at 2×
UK Rules
- No statutory overtime rates
- Depends on employment contract
- Average hourly pay must meet minimum wage
Australia
- Varies by award/agreement
- Typically 1.5× first 2-3 overtime hours
- 2× for additional overtime hours
Always check your local laws and employment contract.
How to Calculate Overtime Pay
Basic Weekly Overtime (US Federal)
Example:
- Hourly rate: $18
- Hours worked: 47 hours
Calculation:
- Regular pay: 40 × $18 = $720
- Overtime hours: 47 - 40 = 7 hours
- Overtime rate: $18 × 1.5 = $27
- Overtime pay: 7 × $27 = $189
- Total: $720 + $189 = $909
Daily Overtime (California Style)
Example:
- Hourly rate: $20
- Monday hours: 10 hours
Calculation:
- Regular pay: 8 × $20 = $160
- Overtime hours: 10 - 8 = 2 hours
- Overtime rate: $20 × 1.5 = $30
- Overtime pay: 2 × $30 = $60
- Monday total: $160 + $60 = $220
Tracking Overtime: Step by Step
Step 1: Know Your Overtime Threshold
Find out from your employer or local law:
- Weekly threshold (usually 40 hours)
- Daily threshold (if applicable)
- Overtime multiplier (1.5×, 2×, etc.)
Step 2: Track Every Hour
Record:
- Exact clock-in and clock-out times
- Break times (subtract unpaid breaks)
- Running total of weekly hours
Step 3: Monitor Your Running Total
Keep a daily count of accumulated hours:
| Day | Daily Hours | Weekly Total | OT Status |
|---|
| Mon | 9 | 9 | No OT |
| Tue | 9 | 18 | No OT |
| Wed | 9 | 27 | No OT |
| Thu | 9 | 36 | No OT |
| Fri | 9 | 45 | 5 hrs OT |
Step 4: Verify Your Paycheck
Compare your tracked overtime to your pay stub:
- Check regular hours match
- Verify overtime hours
- Confirm overtime rate is correct
Common Overtime Tracking Mistakes
Mistake 1: Forgetting Unpaid Breaks
If you have a 30-minute unpaid lunch, a 9-hour shift only gives you 8.5 paid hours. Track actual paid time, not time at workplace.
Mistake 2: Assuming Weekly Starts Sunday
Pay weeks don't always start Sunday. Your employer might use Monday-Sunday or any other 7-day period. Know your pay week.
Mistake 3: Missing Daily Overtime
In California and some other places, working 10 hours in a day earns overtime even if weekly hours are under 40.
Mistake 4: Not Tracking Across Jobs
If you have multiple jobs with the same employer, hours may combine for overtime purposes. Track carefully.
Mistake 5: Unofficial Overtime
Working off the clock or through lunch "to help out" means unpaid hours. If you're working, record it.
What If You're Not Getting Overtime Pay?
If you believe you're owed overtime:
Keep detailed records – they're your best evidence.
Using ShiftWorth for Overtime Tracking
ShiftWorth makes overtime tracking automatic:
- Set your overtime threshold – 40 hours, 8 hours daily, or custom
- Set your overtime multiplier – 1.5×, 2×, or your specific rate
- Real-time tracking – See when you're approaching overtime
- Automatic calculations – Overtime pay calculated instantly
- Weekly summaries – Clear breakdown of regular vs overtime hours
No manual calculations. No spreadsheets. Just accurate overtime tracking.
Summary
To track overtime effectively:
Overtime can add 10-20% to your paycheck when tracked properly. Don't leave money on the table – track every hour.
Start Tracking Your Shifts Today
ShiftWorth makes it easy to track your hours, breaks, and earnings. See exactly what your time is worth.