What Is Overtime?
Overtime refers to hours worked beyond the standard working time defined by law or contract. In most countries, employers are required to compensate overtime at a premium rate — often 1.25x to 2x the regular hourly wage. However, the specific rules vary significantly from country to country.
Understanding overtime rules matters whether you're an employee wanting to ensure you're paid correctly, a freelancer calculating project costs, or an employer trying to stay compliant.
Overtime Rules by Country
United States
US overtime is governed by the Fair Labor Standards Act (FLSA):
- Standard threshold: 40 hours per week
- Overtime rate: 1.5x regular rate ("time and a half")
- Who qualifies: Non-exempt employees (generally hourly workers earning below a salary threshold)
- Exempt employees: Salaried workers meeting specific duties and salary tests (executive, professional, administrative roles) are typically exempt from overtime
- State variations: Some states (like California) require daily overtime after 8 hours, plus double time after 12 hours
Germany
German overtime rules are less prescriptive than many expect:
- Standard working day: 8 hours, extendable to 10 hours if averaged back to 8 over 6 months
- Maximum weekly hours: 48 hours (averaged)
- Overtime premium: Not legally mandated — depends on employment contract or collective agreement (Tarifvertrag)
- Common practice: 25-50% premium for overtime, though many contracts allow compensatory time off instead
- Recording: Employers must record all hours exceeding 8 per day (with electronic recording requirements coming into effect)
France
France has one of the most structured overtime systems in Europe:
- Standard work week: 35 hours (one of the lowest in Europe)
- Overtime rates: 125% for hours 36-43, 150% from hour 44 onward
- Annual cap: 220 overtime hours per year (default, can be modified by collective agreement)
- Alternative: Employers may offer repos compensateur (compensatory rest) instead of overtime pay in some cases
- Forfait jours: Senior employees on day-based contracts (max 218 days/year) are exempt from hourly overtime rules
United Kingdom
- Maximum working week: 48 hours (averaged over 17 weeks), with opt-out available
- Overtime premium: Not legally required — governed entirely by employment contracts
- Minimum wage protection: Overtime hours must not bring the average hourly pay below minimum wage
- Common practice: Time and a half (1.5x) for weekday overtime, double time for Sundays and holidays
Australia
- Standard work week: 38 hours
- Overtime rates: 150% for the first 2-3 overtime hours, 200% thereafter (varies by award/agreement)
- Casual employees: Often receive a 25% loading instead of overtime rates
- Public holidays: Generally compensated at 250% (double time and a half)
Canada
- Standard threshold: Varies by province (typically 40-44 hours/week)
- Overtime rate: 1.5x regular rate in most provinces
- Averaging agreements: Some provinces allow hours to be averaged over multiple weeks
How to Calculate Overtime Pay
The basic formula is straightforward:
Overtime Pay = Overtime Hours x Regular Hourly Rate x Overtime Multiplier
For example, if you work 45 hours in a week in the US with a regular rate of $25/hour:
- Regular pay: 40 hours x $25 = $1,000
- Overtime pay: 5 hours x $25 x 1.5 = $187.50
- Total: $1,187.50
In France with a 35-hour threshold at €20/hour and 42 hours worked:
- Regular pay: 35 hours x €20 = €700
- Overtime pay: 7 hours x €20 x 1.25 = €175
- Total: €875
Common Complications
Averaging Periods
Many countries allow overtime to be averaged over longer periods. Germany allows a 6-month average, the UK uses 17 weeks, and some Canadian provinces allow 2-4 week averaging. This means a 50-hour week followed by a 30-hour week might not trigger overtime in some jurisdictions.
Different Rates for Different Times
Some contracts specify different overtime rates depending on when the work occurs. Weekend hours, night shifts, and public holidays often carry higher premiums than standard weekday overtime.
Salaried Workers
Overtime for salaried employees is one of the most misunderstood areas of employment law. Being salaried doesn't automatically mean you're exempt from overtime. The exemption depends on your role, duties, and salary level — not just how you're paid.
Tracking Overtime Accurately
Manual overtime tracking is error-prone. If you're calculating overtime based on remembered hours or end-of-week estimates, you're almost certainly getting it wrong — in one direction or the other.
A good time tracking system should:
- Automatically detect when hours exceed your configured threshold
- Apply the correct overtime multiplier to excess hours
- Support different rates for different days (weekday vs weekend)
- Show overtime calculations clearly in reports and exports
- Allow project-level or global overtime rules
Apps like Work Counter can automatically detect overtime based on your configured weekly threshold and calculate the correct pay, so you always know exactly what you're owed.
Whether you're tracking your own overtime as an employee or managing it for a team, automated calculation removes the guesswork and ensures everyone is paid correctly.
Track overtime the easy way
Work Counter automatically calculates overtime once you set your weekly hour threshold. See your regular and overtime hours broken down clearly, and export everything to PDF or CSV. Download Work Counter for free on the App Store.
