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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:

DayDaily HoursWeekly TotalOT Status

Mon99No OT
Tue918No OT
Wed927No OT
Thu936No OT
Fri9455 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:

  • Check your employment status – Are you exempt or non-exempt?
  • Review your records – Do you have proof of hours worked?
  • Ask your employer – Start with a polite inquiry to HR/payroll
  • File a complaint – Contact your labor department if unresolved
  • 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:

  • Know your overtime rules (threshold and rate)
  • Track every hour you work
  • Monitor your weekly/daily totals
  • Verify overtime on your paycheck
  • Keep records for evidence
  • 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.

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