elaws - FLSA Overtime Calculator Advisor
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elaws - employment laws assistance for workers and small businesses - FLSA Overtime Calculator Advisor

 

General Principles

Covered, nonexempt employees must be paid overtime pay at no less than one and one-half times the employee’s regular rate of pay for hours worked in excess of 40 in a workweek.

The regular rate on which overtime pay is calculated includes remuneration (or pay) for employment, and certain payments made in the form of goods or facilities customarily furnished by the employer. For example, where the employee’s wages include lodging customarily furnished by the employer, the reasonable cost or the fair value of the lodging furnished must be added to the employee’s earnings before determining the regular rate.  The regular rate does not include certain payments excluded by the FLSA.  Learn more about the statutory exclusions.

An employee’s earnings may be determined on a piece-rate, salary, commission, or some other basis, but in all cases the overtime pay that is due must be computed on the basis of the regular rate.  The regular rate is the average hourly rate calculated by dividing the total pay for employment (except the statutory exclusions) in any workweek by the total number of hours actually worked. 

In general, hours worked includes all time an employee must be on duty, or on the employer's premises or at any other prescribed place of work. Also included is any additional time the employee is suffered or permitted (i.e., allowed) to work. Review the definition of hours worked. To learn which work-related activities are considered hours worked, review the FLSA Hours Worked Advisor.

A workweek is a fixed and regularly recurring period of 168 hours, or seven consecutive 24-hour periods.  It may begin on any day of the week and at any hour of the day.  An employee’s frequency of pay (e.g., bi-weekly, semi-monthly, monthly) has no impact on this fixed workweek.  Each workweek stands alone; averaging hours worked over two or more workweeks is not permitted by the FLSA. 

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