New York Overtime Calculator Guide 2026: Worked Examples, Spread of Hours & Tipped Pay

How to calculate overtime pay in New York — step by step

Under New York Labor Law and 12 NYCRR Part 142, calculating overtime compensation for non-exempt New York employees follows a structured five-step payroll process:

1. Step 1: Determine the Regular Rate of Pay:Calculate the employee's true regular hourly rate under 12 NYCRR § 142-2.2 and federal 29 C.F.R. § 778.109. The regular rate includes base hourly pay plus all non-discretionary bonuses, performance commissions, and shift differentials divided by all hours worked during the workweek. The regular rate cannot fall below the applicable regional minimum wage ($17.00 downstate / $16.00 upstate).
2. Step 2: Total Weekly Hours Worked:Sum all physical working hours in the employer's designated 7-day payroll week. All hours worked beyond 40 are overtime hours. Paid non-working time (such as vacation, paid sick days, or holidays) does not count toward the 40-hour overtime threshold.
3. Step 3: Calculate Straight-Time Earnings:Multiply the first 40 hours worked by the regular hourly rate. For example, 40 hours at $25.00/hr produces $1,000.00 in straight-time earnings.
4. Step 4: Compute Overtime Pay (1.5×):Multiply all hours worked beyond 40 by 1.5 times the regular rate. At $25.00/hr, the overtime rate is $37.50/hr ($25.00 × 1.5). Six overtime hours produce $225.00 in overtime earnings.
5. Step 5: Audit for Spread of Hours and Compute Deductions:Check each workday to see if the elapsed spread from start to finish exceeded 10 hours. If so, add one extra hour at the applicable state minimum wage ($17.00 or $16.00) for each qualifying day. Finally, calculate federal taxes, mandatory FICA payroll withholdings (6.2% Social Security + 1.45% Medicare), New York State graduated income tax, and NYC local taxes if applicable.

New York overtime calculation examples

Below are six checked, step-by-step mathematical examples demonstrating how New York overtime and spread-of-hours calculations work across standard hourly wages, upstate minimum wage, downstate tipped hospitality schedules, blended job rates, salaried non-exempt pay, and spread-of-hours shifts:

What is the regular rate of pay in New York?

Under 12 NYCRR § 142-2.2 and federal FLSA regulations (29 C.F.R. § 778.109), the regular rate of pay is the weighted hourly amount upon which all overtime is computed. It is determined by dividing an employee's total weekly remuneration (excluding statutory exceptions) by the total number of hours worked in that week.

In New York, the regular rate cannot fall below the applicable regional minimum wage ($17.00 downstate / $16.00 upstate). Mandatory components that must be incorporated into the regular rate include:

• Base Hourly Pay: Straight-time hourly compensation earned across all working hours.
• Non-Discretionary Bonuses: Performance bonuses, attendance awards, safety bonuses, and production incentives announced in advance that employees reasonably anticipate.
• Sales Commissions: Commission payments linked to goods or services sold during the pay period.
• Shift Differentials: Additional compensation paid for night shifts, graveyard shifts, weekend schedules, or hazardous duties.

Statutory exclusions permitted by law include discretionary gifts (e.g., unexpected holiday bonuses), reimbursement for verifiable business expenses, paid time off where no work was performed (vacation, PTO, sick leave), and employer contributions to bona fide retirement or healthcare plans.

Does New York have daily overtime?

No, New York does not have daily overtime. Under New York Labor Law, employers are not required to pay time-and-a-half after 8 or 10 hours in a single workday, nor does New York mandate double time after 12 hours. Unlike California, Colorado, Alaska, or Nevada, New York calculates statutory overtime pay strictly on a 40-hour weekly basis.

Key implications under New York wage law include:

• An employee who works 12 or 14 hours on a single shift receives straight-time hourly wages for all hours if their weekly total does not exceed 40.
• Working on Saturdays, Sundays, or holidays does not require premium pay unless total physical hours for that workweek exceed 40.
• New York law provides two narrow industry-specific weekly thresholds: residential (live-in) employees receive overtime after 44 hours per week (12 NYCRR § 142-2.2), while farm workers receive overtime after 52 hours per week in 2026 (under NY Labor Law § 671, phasing down to 40 hours by 2032).

For a comparison with daily overtime states, review our national overtime pay calculator guide and our companion guide to Illinois overtime calculations.

Spread of hours pay — the extra hour most workers miss

While New York lacks daily overtime, it provides a powerful worker protection known as Spread of Hours pay under 12 NYCRR § 142-2.4 (Miscellaneous Industries) and 12 NYCRR § 146-1.6 (Hospitality Industry).

The "spread of hours" is defined as the entire interval between the beginning and the end of the employee's workday. Crucially, this interval includes:

• All active working time.
• All bona fide meal periods and rest breaks (whether paid or unpaid).
• Any off-duty split-shift gaps between shifts (for example, working 11:00 AM to 2:00 PM and 5:00 PM to 10:00 PM creates an 11-hour spread).

Whenever the total spread exceeds 10 consecutive hours in any single calendar day, the employer must pay the employee one additional hour at the basic statutory minimum wage:

Spread-of-hours pay must be paid for each day the 10-hour threshold is crossed. It cannot be offset against overtime pay earned on other days or hours.

New York overtime for tipped employees — the $19.85 trap

Calculating overtime for tipped food service staff in New York (servers, bartenders, bussers) is subject to strict Department of Labor regulations under the Hospitality Wage Order (12 NYCRR Part 146).

In New York City, Long Island, and Westchester, the minimum wage is $17.00 per hour with a maximum allowable food service tip credit of $5.65 per hour, making the direct cash wage $11.35 per hour ($17.00 − $5.65). In upstate New York, the minimum wage is $16.00 per hour with a maximum tip credit of $5.30 per hour, making the direct cash wage $10.70 per hour ($16.00 − $5.30).

Under 12 NYCRR § 146-1.4, tipped overtime must be calculated on the FULL minimum wage, not on the cash wage:

The "tipped overtime trap" occurs when an employer simply multiplies the direct cash wage by 1.5. For downstate food service workers, multiplying $11.35 by 1.5 yields $17.03 per hour. Paying $17.03 instead of the lawful $19.85 shortchanges the worker by $2.82 per overtime hour. For non-food service tipped service employees, direct cash wages are $14.15 downstate / $13.30 upstate.

New York overtime for salaried employees — the $1,275 threshold

Many employers incorrectly believe that paying a fixed salary automatically exempts a worker from overtime pay. Under New York law, an employee must satisfy both the salary threshold and the executive or administrative duties test under 12 NYCRR § 142-2.14.

New York State sets its salary exemption threshold at 75 times the basic minimum wage:

• Downstate (NYC, Long Island, Westchester): 75 × $17.00 = $1,275.00 per week ($66,300.00 per year).
• Upstate (Rest of New York State): 75 × $15.988 = $1,199.10 per week ($62,353.20 per year).

These thresholds dramatically exceed the federal FLSA baseline of $684 per week ($35,568 per year). Any worker earning less than the applicable New York threshold cannot be exempt, regardless of their job title or executive duties. When a salaried non-exempt worker exceeds 40 hours in a workweek, their regular rate is Weekly Salary ÷ 40 hours, and all overtime hours must be compensated at 1.5 times that rate.

New York overtime pay biweekly — why the week still rules

Even though most New York businesses run biweekly payroll schedules, 12 NYCRR Part 142 and federal 29 C.F.R. § 778.104 mandate that overtime is calculated strictly on an individual 7-day workweek basis. Employers are strictly prohibited from averaging hours across the two weeks of a biweekly pay period.

For example, if an employee works 50 hours in Week 1 and 30 hours in Week 2 (totaling 80 hours across two weeks):

• Week 1 (50 hours): The employee must receive 40 hours of straight-time pay plus 10 hours of overtime pay at 1.5×.
• Week 2 (30 hours): The employee receives 30 hours of straight-time pay.
• Total Biweekly Wages: The employer must pay 70 straight-time hours plus 10 overtime hours. Claiming that 80 hours across two weeks equals an average of 40 hours per week violates New York Labor Law.

New York overtime and taxes — graduated state tax, NYC tax, and the §225 deduction

Overtime compensation in New York is subject to federal, state, and local taxation:

• New York State Income Tax: New York levies a graduated personal income tax ranging from 4.00% to 10.90% (with a standard deduction of $8,000 for single filers). All overtime wages are subject to NYS tax.
• New York City Resident Tax: Workers residing within New York City pay an additional municipal income tax ranging from 3.078% to 3.876%, withheld directly on paychecks.
• Federal Withholding & FICA: Standard federal tax tables and FICA taxes (6.2% Social Security + 1.45% Medicare) apply. To understand why withholding spikes on large overtime checks, read is overtime taxed more.
• Federal OBBBA § 225 Overtime Deduction (2025–2028): Under the federal One Big Beautiful Bill Act (§ 225), eligible employees can claim a below-the-line deduction on Schedule 1-A for qualified overtime pay. In New York, the entire 0.5× FLSA premium slice qualifies for this federal deduction (up to $12,500 single / $25,000 married joint). However, this federal deduction does NOT reduce New York State or NYC personal income tax. Calculate your net take-home pay using our overtime tax calculator.