Time and a Half
Definition, rules and examples

"Time and a half" is the phrase most people use when they talk about overtime pay. It describes the multiplier, not the hours: half again on top of an employee's normal rate. Getting it right depends on two things, knowing which hours qualify and knowing what the employee's regular rate actually is. This page covers both, with examples you can reuse.

How time and a half works

To find the time-and-a-half rate, multiply the regular rate of pay by 1.5. The extra half is often called the "overtime premium." The Department of Labor's work hours page describes the federal requirement as pay of "not less than time and one-half the employee's regular rate" for hours beyond 40 in a workweek.

Quick reference table

Worked example

Jordan is a non-exempt retail associate paid $16.00 per hour. In one workweek Jordan works 44 hours.

• Straight time: 40 hours x $16.00 = $640.00
• Time-and-a-half rate: $16.00 x 1.5 = $24.00
• Overtime: 4 hours x $24.00 = $96.00
• Total: $640.00 + $96.00 = $736.00

Now suppose Jordan also earned a $40.00 attendance bonus promised in advance. Under the Department of Labor's bonus fact sheet, attendance-based bonuses are nondiscretionary and are included in the regular rate. The regular rate becomes ($704.00 straight time for 44 hours + $40.00) / 44 = $16.91 (rounded). The overtime premium is half that rate, about $8.45, for each of the 4 overtime hours, or $33.82. Total pay: $744.00 + $33.82 = $777.82. Paying the bonus but calculating overtime on $16.00 alone would underpay Jordan.

The EZTime overtime calculator can help you test numbers like these before payroll runs.

Federal rules for time and a half

Key points from the Department of Labor's Fact Sheet #23:

• Non-exempt employees must receive overtime pay for hours worked in excess of 40 in a workweek, at a rate not less than time and one-half their regular rates of pay.
• The workweek is a fixed and regularly recurring period of 168 hours. Averaging hours over two or more weeks is not permitted.
• The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, as such.
• The regular rate includes all remuneration for employment except certain payments the Act excludes, and it cannot be lower than the minimum wage.

Time and a half applies only to non-exempt employees. Exempt status depends on salary and duties tests, not on job title.

State rules that go beyond time and a half

Some states require premium pay in more situations than federal law. For example, the California Division of Labor Standards Enforcement's overtime FAQ explains that California requires 1.5 times the regular rate for hours over eight in a workday, and double the regular rate for hours over 12 in a workday. Some predictive scheduling laws also use the time-and-a-half rate. Oregon's Bureau of Labor and Industries says, under the state's predictive scheduling law, that covered employees who work within 10 hours after the end of a previous shift are paid 1.5 times their regular rate for those hours.

Best practices

• Start with the regular rate. Calculate the regular rate each week before applying the 1.5 multiplier, especially when bonuses or shift differentials are involved.
• Write down your workweek. Set it once in your timekeeping system so overtime is counted consistently.
• Separate premium pay types. Label holiday premiums, weekend premiums, and overtime separately on timecards and pay statements so you can see what was paid and why.
• Check state and local law. Daily overtime, seventh-day rules, and scheduling laws can create time-and-a-half obligations that federal law does not.
• Review approvals weekly. Approve or adjust timecards before the payroll cutoff so overtime is paid on the regular payday for the period.

Common mistakes

• Multiplying the base wage instead of the regular rate. This is the most frequent underpayment when bonuses or differentials exist.
• Counting the biweekly pay period instead of each workweek. Eighty hours over two weeks can still include overtime.
• Treating holiday pay as automatic time and a half. Unless a policy, contract, or state law says so, federal law does not require it.
• Rounding in the employer's favor. Rounding rules that consistently shave minutes can reduce overtime hours that should have been paid. See time clock rounding rules.
• Not paying unapproved overtime. Hours that are suffered or permitted must be paid, even if the employee skipped an approval step.

Time and a half vs. other premium rates

Keeping these terms distinct helps managers explain pay statements to employees. "Time and a half" should mean the overtime rate calculated from the regular rate, not a loose term for any extra pay. When employees see consistent labels on their timecards and pay stubs, questions and disputes drop, and payroll staff can trace each premium back to the rule that created it.

How EZTime helps

EZTime captures hours accurately with a GPS mobile time clock with geofencing, NFC tags, a tablet kiosk, or biometric clocks, then flags employees who are approaching overtime with automatic overtime and break alerts. Managers can fix missed punches through timecard corrections with an audit trail, plan coverage with AI shift scheduling and shift templates, and approve shift swaps before they push someone past 40 hours. Payroll-ready Excel and PDF exports work with any payroll software; EZTime does not run payroll itself. Pricing starts at $2 per employee per month, and there is a 14-day trial. Explore EZTime scheduling software or view pricing.

This is general information, not legal advice.