Separate hours before calculating pay
Start by dividing total hours into regular and premium groups using the threshold and rules that apply to the situation. The arithmetic should not silently choose the threshold for you.
Apply the multiplier to the correct rate
A basic estimate multiplies overtime hours by the hourly rate and the selected multiplier. Regular pay is calculated separately, then the two amounts are added.
More complex compensation arrangements may require a different regular-rate calculation.
Example structure
If a worker has 40 regular hours and 5 overtime hours, calculate regular pay for 40 hours and premium pay for 5 hours. Keep the two values visible so the total can be audited.
Important boundaries
Eligibility, workweek definitions, exemptions, daily overtime and double-time rules vary. Use authoritative current guidance or qualified payroll advice before treating an estimate as final.