OVER TIME CALC SERIES

$900 straight-time pay + $90 overtime pay = $990 Step 4: Calculate total compensation for week. Since the straight-time earnings have already been calculated (see Step 1), the additional amount to be calculated is one-half the regular rate of pay. $900 straight-time pay divided by 50 hours worked = $18 ($10 hourly rate x 10 hours) + ($20 hourly rate X 40 hours) = $900 Step 1: Calculate total straight-time pay. When there are two or more rates of pay, the regular rate for that workweek is the weighted average. In one workweek, the employee works 10 hours for $10 per hour and 40 hours for $20 per hour.

OVER TIME CALC SERIES

However, if the bonus is earned over a series of workweeks, the bonus must be included in the regular rate of pay in all overtime weeks covered by the bonus period.Ī non-exempt employee works for the same employer in two different jobs. Note: If the nondiscretionary bonus is earned over a single workweek, as is the case above, the bonus is added to the employee's regular earnings for that workweek when determining the regular rate of pay. The employer should then use 1.5 (or 2 in certain cases), not 0.5, as the multiplier for determining the employee's overtime pay rate. For example, in California, when an employee receives a flat-sum bonus (for instance, an employee receives a $30 bonus if they work a shift on a Saturday), you factor it into an employee's regular rate of pay by dividing the amount of the bonus by the total number of non-overtime hours worked. State Law: Your state law may require a different formula. $70 overtime pay + $700 straight-time pay = $770 Since the straight-time earnings have already been calculated for all hours worked (see Step 1), the employee is entitled to an additional 10 hours of overtime pay, calculated at one-half the regular rate of pay. 5 and then multiply by total overtime hours. $700 straight-time pay divided by 50 hours worked = $14 Step 2: Divide total straight-time compensation by total hours worked to determine regular rate of pay.

($12 hourly rate x 50 hours worked) + $100 bonus = $700 Step 1: Add straight-time hourly wages for all hours worked and bonus to determine total straight-time compensation. In one workweek, he works 50 hours and receives a $100 nondiscretionary productivity bonus. $20 (regular rate) x 1.5 (OT premium) x 10 hours (OT hours worked) = $300 in OT payĮxample #2: Hourly Wage with a Nondiscretionary BonusĪ non-exempt employee is paid $12 per hour. Under the FLSA, her overtime pay is calculated as follows: Always check to ensure calculations comply with both federal and state law.Ī non-exempt employee is paid $20 per hour and receives no other forms of compensation. Here are some examples of calculating overtime under federal law. Regular Rate of Pay:Īn employee's regular rate of pay includes their hourly rate as well as the value of nondiscretionary bonuses, shift differentials, and certain other forms of compensation. For the first eight hours of work performed on the seventh consecutive work day in a single workweek.Ĭalifornia also requires employers to pay non-exempt employees double their regular rate of pay for all hours worked over 12 in a workday, and over eight on the seventh consecutive workday in a workweek.Some states require overtime pay in additional circumstances and at different rates.Įxample: California requires employers to pay non-exempt employees 1.5 times their regular rate of pay for:

The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees 1.5 times their 'regular rate of pay' for all hours worked over 40 in a workweek.

Over time calc