How to Calculate Construction Overtime

Few work-related issues divide workers and management more than overtime pay: workers love it; management loathes it. Federal labor law mandates minimum compensation of 1.5 times a construction worker's normal hourly rate for all hours worked in excess of 40 hours in a week, so managers push to keep overtime hours to a minimum, even if it mean extending a job into a new week or using a smaller crew. Calculating overtime is a relatively simple process that allow workers and management to stay on the same page.

  1. 1.

    Add up the total number of hours worked by the worker during the workweek; the official workweek is 40 hours, usually composed of five days, eight hours each.

  2. 2.

    Subtract 40 hours from the total hours worked to determine the amount of overtime hours worked.

  3. 3.

    Multiply the number of overtime hours worked by 1.5 times the worker's regular hourly wage to determine overtime earnings.