The example workbook attached is based on the example given in the original post, so I would hope it bears some resemblance to the actual layout . To calculate pay, the results in columns E and F will probably be wanted in number format. Therefore, using the example in the attached workbook and with columns A to D formatted as hh:mm, use the following:

Format cell E3 as a number and use:
=24*((B3-A3)+IF(D3*24<=3,1-C3,D3-C3))

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Format cell F3 as a number and use:
=24*(IF(D3*24>3,0,D3))

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