Custom Overtime Threshold Calculator
Standard Formula
Overtime = Max(0, Worked Hours - Custom Threshold Hours)
Perfect for union contracts, government agencies, or European collective bargaining agreements with sub-40 hour thresholds.
How Custom Overtime Threshold Calculator Works?
The Custom Overtime Threshold Calculator works by paying straight time up to a threshold you choose, such as 35 or 37.5 hours, and 1.5× for every hour after it.
1Enter the hourly rate
Type the base wage, $26.00 by default.
2Enter total hours worked
Add all hours for the period, 45 by default.
3Set the custom threshold
Enter the contract limit, for example 37.5 hours.
4Read the total
37.5 regular hours ($975.00) plus 7.5 overtime hours ($292.50) returns $1,267.50.
Custom Overtime Threshold Calculator Formula
The Custom Overtime Threshold Calculator formula is Overtime = Max(0, Worked Hours − Custom Threshold).
Overtime hours
OT = Max(0, Worked − Threshold)
Regular pay
Regular Pay = Min(Worked, Threshold) × Rate
Total pay
Total = Regular Pay + OT × Rate × 1.5
- Worked
- Total hours in the period.
- Threshold
- Hours paid at straight time before overtime begins.
- OT
- Hours above the threshold.
Worked example: Ontario 44-hour rule
Ontario, Canada sets overtime after 44 hours per week. A worker logs 50 hours at CAD $24.00.
OT = 50 − 44 = 6 hours. Total = (44 × $24.00) + (6 × $36.00) = CAD $1,272.00.
Custom Overtime Threshold Calculator Conversion Table
The Custom Overtime Threshold Calculator conversion table compares 6 thresholds for the same 45-hour week at $26.00 per hour.
| Threshold | Regular Hours | Overtime Hours | Regular Pay | Overtime Pay | Total Pay |
|---|---|---|---|---|---|
| 35 hrs | 35 hrs | 10 hrs | $910.00 | $390.00 | $1,300.00 |
| 36 hrs | 36 hrs | 9 hrs | $936.00 | $351.00 | $1,287.00 |
| 37.5 hrs | 37.5 hrs | 7.5 hrs | $975.00 | $292.50 | $1,267.50 |
| 40 hrs | 40 hrs | 5 hrs | $1,040.00 | $195.00 | $1,235.00 |
| 44 hrs | 44 hrs | 1 hrs | $1,144.00 | $39.00 | $1,183.00 |
| 48 hrs | 45 hrs | 0 hrs | $1,170.00 | $0.00 | $1,170.00 |
What is Custom Overtime Threshold Calculator?
A Custom Overtime Threshold Calculator is a tool that starts overtime at any hour count instead of the default 40.
Thresholds below 40 appear in public-sector contracts (35 or 37.5 hours), nursing agreements (36 hours for three 12-hour shifts) and many collective agreements outside the US. Thresholds above 40 appear in national rules, such as 44 hours in Ontario and Alberta, Canada, and 48 hours in several Asian and Middle Eastern labor codes.
In the US, an employer can choose a threshold below 40. A threshold above 40 does not override the FLSA for covered non-exempt employees.
What are the uses of Custom Overtime Threshold Calculator?
There are 4 main uses of the Custom Overtime Threshold Calculator.
Union contracts
Members price overtime after 35 or 37.5 hours.
International payroll
Employers apply 44- or 48-hour national thresholds.
Healthcare schedules
Nurses on a 36-hour base week price extra hours.
Policy design
HR teams model the cost of lowering the overtime threshold.