Whether it is better to seek a state or federal remedy, and whether it makes sense to file an administrative claim or a lawsuit, will depend on the facts of the case. Employers are responsible for designating the start of the workweek.⁠45 Knowing how the workweek has been designated is often important for deciding whether overtime is owed.

• You worked 41 whole hours, so that will be the same in decimal hours.
• Recall that the FLSA overtime calculation factor is 1.5 times the regular rate of pay for nonexempt employees who work more than 40 hours per workweek.
• Employees can be classified in different ways based on their salary and the type of work they do.
• You can also edit your timesheet from your iPhone or Android phone.
• Some employees may be exempt from overtime pay if they are employed as executive, administrative, or outside sales workers, as well as certain computer employees.

“Nonexempt” means that the covered employee is entitled to the law’s minimum wage and/or overtime requirements. FLSA overtime pay is due on the regular pay day for the period in which the overtime was worked. The overtime pay requirement may not be waived by agreement between the employer and the employee. The overtime pay requirement cannot be met through the use of compensatory time off except under special circumstances applicable only to state and local government employees. To accurately calculate overtime pay, you must first determine the employee’s regular rate of pay. An employee’s regular rate includes their hourly rate as well as the value of nondiscretionary bonuses, shift differentials, and certain other forms of compensation. The regular rate of pay is an employee’s average hourly rate.

Time-And-A-Half or Double Time Overtime Rates

The employee must also specifically request time off in lieu of overtime pay. Then multiply the weighted average by https://www.bookstime.com/ 1.5, the overtime rate. Multiply the overtime rate by the number of hours worked by the employee to earn overtime.

Scheduling solution that allows for a certain amount of flexibility. If there’s not enough work to justify overtime on any given week, use the scheduling software to limit the number of hours an employee can work that week. That way, they can work within their own parameters day to day, but they will not be able to exceed 40 hours in the week. The good news is, if you need to pay your employees overtime, that means there’s no lack of demand for your company’s services. What’s more, no matter the size of your business, you can use tools that make it easy to calculate and pay employees for the overtime they accrue. Add together the regular and overtime pay for each position.

How Time and a Half Works for Flexible Schedules

Add this figure to the overtime pay to obtain the amount to be paid for overtime. Let’s take a look at a salaried non-exempt employee, with a fluctuating schedule, who earns a weekly salary of $600. Since the straight-time earnings have already been calculated , the additional amount to be calculated is one-half the regular rate of pay. From overtime and how to calculate overtime pay bonuses to paying and filing taxes, payroll can be a hassle. The important thing to remember is that you stay on top of your various payroll responsibilities in real time. That way, no matter which tricky overtime pay calculations you have to deal with, you can avoid serious mistakes, like underpaying employees or failing to follow your state’s laws.