Time and a half means paying an employee 1.5 times their normal hourly rate when they work overtime. So, if someone usually earns $10 an hour, their time and a half rate would be $15 for each extra hour worked.
In the US, it’s part of federal law or FLSA. It says that most hourly workers (and even some salaried ones) must get time and a half pay if they work more than 40 hours in one week.
In the UK, the law doesn’t force employers to pay time and a half for overtime. But there’s a catch; your employees’ average pay must never fall below the National Minimum Wage, even with overtime included. Many employers do offer time and a half as part of their contracts or company policy, especially to keep staff happy and avoid burnout.
Why employers should care
If you’re an employer or manager, here’s why this matters to you:
It’s a legal must (in the US, and sometimes by contract in the UK).
It keeps your employees motivated during peak periods.
It helps with fair scheduling and workforce planning.
It protects your business from legal trouble or wage disputes.
⚠️ Friendly reminder: In the US, failing to pay proper overtime can land you in hot water (think: back pay + penalties). In the UK, getting overtime wrong can also lead to wage claims or disputes over holiday pay.
How much is time and a half?
Let’s break it down with a quick example:
Regular Hourly Rate
Time and a Half Rate
Example of 5 OT Hours
$10
$15
$75
$12
$18
$90
$20
$30
$150
💡Quick tip for payroll: To calculate time and a half, just take the regular hourly rate and multiply it by 1.5. Then multiply that number by how many overtime hours were worked.
For salaried workers in the US who are non-exempt, you’ll need to first work out their hourly rate by dividing their weekly salary by 40.
Who receives time and a half pay?
This one depends on where your business is based and how your employees are classified. Let’s break it down.
🇺🇸 In the United States
The Fair Labor Standards Act (FLSA) says that non-exempt employees must be paid time and a half when they work over 40 hours in a workweek.
So, who’s non-exempt?
Non-exempt employees (get time and a half):
Most hourly workers (retail, hospitality, warehousing, etc.)
Some salaried workers who earn below a certain amount and don’t fall under special job categories
Workers not in executive, professional, or administrative roles
Exempt employees (don’t get time and a half):
Salaried staff in executive, admin, or professional roles
Workers earning above the FLSA salary threshold (currently under legal review)
Independent contractors (they’re not employees)
⚠️ Heads up: Some states (like California, New York, and Massachusetts) havestricter rules. Always check your state’s labour laws.
🇬🇧 In the United Kingdom
Time and a half isn’t a legal requirement, but it might still apply depending on:
What’s written in the employment contract
Whether the company has an internal policy or union agreement
If regular overtime is worked and affects holiday pay calculations
In most cases, hourly workers or shift workers may receive time and a half for:
Working unsocial hours (nights, weekends)
Going over contracted hours
Voluntary overtime (if agreed)
Salaried staff? It depends on the contract and whether their weekly hours are flexible or capped.
How to calculate time and a half
Whether you’re paying someone by the hour or on a salary, getting overtime pay right is important, for both legal reasons and keeping your team happy. Here’s how to work it out without giving yourself a headache.
For hourly employees
This one’s simple maths. You only need two things:
Let’s say Jane earns $12/hour and works 6 extra hours this week.
Her overtime rate is $12 × 1.5 = $18/hour
Overtime pay = £$18 × 6 = $108
For salaried employees (non-exempt)
It’s a bit more fiddly for salaried workers who qualify for overtime, but still manageable. Here's what you should do:
Find the weekly salary
e.g. $600 per week
Divide by standard hours (usually 40)
$600 ÷ 40 = $15/hour
Multiply by 1.5 to get the overtime rate
$15 × 1.5 = $22.50/hour
Multiply by overtime hours worked
5 extra hours × $22.50 = $112.50 overtime pay
So, for that week, they’d earn $600 + $112.50 = $712.50 total pay
Do bonuses and holiday work count towards time and a half?
Overtime can get a bit trickier whenbonuses and bank holidays enter the mix. Here’s what you need to know.
Bonuses
Bonuses can affect how time and a half is calculated,but only certain types.
✅ Non-discretionary bonuses do count
These are bonuses promised in advance like:
Hitting sales targets
Meeting performance goals
Productivity incentives
Since they’re part of the employee’s expected earnings, they must be included in their “regular rate of pay” when calculating overtime.
❌ Discretionary bonuses don’t count
These are surprise or one-off rewards the company gives at its own choice, like:
Holiday bonuses
Spot bonuses for good behaviour
Surprise team rewards
Since they’re not guaranteed or expected, you don’t need to factor them into the overtime pay rate.
👉Example:
Let’s say:
Mark earns $500 for 40 hours of work
He also earns a $100 performance bonus (non-discretionary)
He works 5 hours of overtime that week
Here’s the correct way to do it:
Total pay with bonus: $500 + $100 = $600
Regular rate: $600 ÷ 45 hours = $13.33/hour
Overtime rate: $13.33 × 1.5 = $20/hour
Overtime pay: 5 × $20 = $100
⚠️ If you skipped the bonus, you’d underpay him. And underpaying overtime? That’s a fast track to grumpy staff or legal trouble.
What about weekends and holidays?
Let’s clear up a big myth: time and a half isn’t automatically required for weekends or holidays.
It depends on:
Your contract or company policy
Any union agreements
Whether the hours push the employee over 40 hours in a week (in that case, it’s overtime either way)
In practice:
US law doesn’t require higher pay for working on bank holidays or weekends, unless the extra hours exceed 40/week.
UK law also doesn’t require it — but many employers choose to offer enhanced rates (like time and a half or double pay) to keep staff happy.
💡Pro tip: If you promise time and a half for Christmas shifts or Sunday hours, write it clearly in the employment contract or staff handbook.
What holidays do you get paid time and a half?
Since there’s no law that says employees must be paid time and a half on holidays, it all comes down to your company’s own policy or the employee’s contract.
If it’s in the contract = it applies
If you’ve promised in writing that employees will get time and a half (or double time!) for working on public holidays, then yes, you must honour that. Otherwise, there's no legal requirement.
Typical holidays where time and a half might be offered:
Most companies that offer holiday overtime do so for:
Christmas Day
Boxing Day (UK) / Day after Christmas (US)
New Year’s Day
Easter (UK)
Good Friday (UK)
Bank Holidays (UK)
Thanksgiving (US)
Independence Day (US)
Labour Day (US)
These are days when many businesses are closed, so if your team works them, offering time and a half is a nice way to say “thanks for showing up.”
So what should employers do?
Be clear in your policies about which holidays qualify for premium pay
Put it in writing (contracts, employee handbook, shift guidelines)
Stay consistent; picking favourites can cause resentment fast
💡Pro tip: Want to stand out as an employer? Offering time and a half (or even double pay) on major holidays can boost morale and retention; especially in sectors like retail, healthcare, or hospitality.
Our workforce management software makes it easy to stay on top of overtime rules — without spreadsheets or guesswork. Whether you're tracking hours for hourly staff or keeping tabs on salaried employees with flexible contracts, Shiftbase helps you stay compliant and organised.
Here’s how:
Smart employee scheduling helps you avoid accidental overtime by giving you a clear view of everyone’s weekly hours.
Built-in time tracking calculates regular and overtime hours automatically — including time and a half.
Absence management means you can plan ahead when staff are off, so you're not caught out with unexpected costs or emergency shifts.
No more back-of-the-napkin maths or “Did we pay them the right rate?” stress.
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Frequently Asked Questions
No, not by law. There’s no legal rule saying you must pay time and a half on bank holidays or public holidays. It’s entirely up to you and what’s agreed in the employment contract.
That said, many businesses choose to offer time and a half (or even double pay) on holidays to reward staff for working unsociable hours.
💡Tip: If you do offer it, write it down in your policy, contract, or rota guidance to avoid confusion later.
Yes — most of the time. Time and a half is the most common rate used for overtime, especially for hourly workers.
So if an employee’s regular pay is $12/hour, their overtime rate would be $18/hour (12 × 1.5).
However, this isn’t automatic in the UK — it depends on the contract. In the US, under federal law, eligible employees (non-exempt) must be paid at least time and a half for all hours worked over 40 in a week.
It depends. In the US: Yes — if the employee is classed as non-exempt under the FLSA , not paying time and a half for hours beyond 40 per week is a violation of federal law. You could face fines, back pay claims, or audits.
In the UK: No — there’s no legal obligation to pay time and a half for overtime. But you must ensure the employee’s average pay doesn’t fall below the minimum wage, even after overtime is added in. And again, your contract rules!
Double time and a half = 2.5 × the regular hourly rate.
This is even more generous than standard overtime. For example:
Normal pay = £10/hour
Double time and a half = £25/hour (10 × 2.5)
Employers sometimes offer it for:
Major holidays (e.g. Christmas Day)
Emergency cover shifts
Long consecutive hours worked (e.g. triple shifts)
But again, this isn’t legally required; it’s up to you as the employer to decide when and if you offer it.
Rinaily is a renowned expert in the field of human resources with years of industry experience. With a passion for writing high-quality HR content, Rinaily brings a unique perspective to the challenges and opportunities of the modern workplace. As an experienced HR professional and content writer, She has contributed to leading publications in the field of HR.
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