How to calculate hours worked
- Subtract the start time from the end time. 8:00 AM to 5:30 PM is 9 hours 30 minutes.
- Subtract unpaid breaks. Take away the 30-minute lunch and the day is 9:00, or 9.00 hours.
- Add the days. Five of those days are 45:00 hours for the week.
A shift that ends after midnight is counted to the next morning: 10:00 PM to 6:30 AM with a 30-minute break is 8:00 hours. The calculator works in whole minutes, so the totals are exact.
Converting minutes to decimal hours
Payroll systems usually want hours as a decimal: divide the minutes by 60. 7 hours 45 minutes is 7.75 hours, not 7.45. The results show both formats.
Minutes as decimal hours
| Minutes | Decimal hours |
|---|---|
| 5 min | 0.08 |
| 6 min | 0.1 |
| 10 min | 0.17 |
| 12 min | 0.2 |
| 15 min | 0.25 |
| 20 min | 0.33 |
| 30 min | 0.5 |
| 45 min | 0.75 |
Overtime
Under the federal Fair Labor Standards Act, covered non-exempt employees must be paid at least one and a half times their regular rate for hours worked over 40 in a workweek (U.S. Department of Labor: overtime pay). In the example, 45 hours is 5 hours of overtime, so gross pay is $800.00 regular plus $150.00 overtime = $950.00.
Some states also require overtime after a set number of hours in a day, and some employers pay a different rate or start overtime earlier. You can change the weekly threshold and the overtime rate; daily overtime is not calculated.
Assumptions and limits
- Breaks you enter are unpaid and are subtracted; paid breaks should be left out.
- Times are not rounded. Some employers round punches, for example to the nearest quarter hour.
- Pay is gross, before taxes and deductions, for one workweek at one hourly rate.
- Whether you are owed overtime depends on your job and your state; this is not legal advice.
Methodology and testing
Automated tests check hand-worked examples, overnight shifts, odd minutes and custom overtime rules, and compare 2,000 random weeks against an independent calculation using calendar date arithmetic. How we build and test calculators.
Sources
- Overtime Pay, U.S. Department of Labor, Wage and Hour Division. Under the Fair Labor Standards Act, covered non-exempt employees must receive overtime pay of at least one and one-half times the regular rate for hours worked over 40 in a workweek.
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