In the US, the minimum amount this rate can be is $7.25 per hour, but this varies from state to state and may need to be higher depending on where you live. If you don’t pay overtime when it’s due, you could face back pay awards, fines, and lawsuits. The Department of Labor takes https://www.bookstime.com/ overtime violations seriously and may conduct audits to ensure compliance.

Calculating overtime for a nonexempt employee that works a fluctuating workweek

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Find the overtime pay

Since California overtime law has its own specific conditions, it’s wise to have retained earnings a separate calculator on the ready. California law treats both every hour worked over 8 hours per day, and every hour over 40 hours per week as overtime. Even though calculating overtime pay is usually not complicated, if you don’t pay enough attention to all the details, you might end up with miscalculations. The Fair Labor Standards Act regulates the overtime pay rate, and it is usually the same across all employee statuses.

• It may begin on any day of the week and at any hour of the day and is not impacted by an employee’s pay frequency, e.g., bi-weekly, semi-monthly, monthly.
• Most of the workers covered by the FLSA are eligible for overtime pay.
• It encompasses time tracking, billing, invoicing, team management, and reporting, all in one.
• Usually, keeping overtime within 5-10% of total hours worked is a reasonable goal for maintaining productivity and work-life balance.
• It’s important to understand and follow overtime rules for both the federal and state governments.

How much is my overtime pay rate?

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Eligible for overtime pay

• Still, a calculator might fall short in letting you obtain the most accurate numbers regarding your overtime pay — especially if you don’t have enough data to begin with, such as logged hours and reports.
• The following methods offer exceptions to the normal FLSA overtime pay requirements.
• Note that certain states may have different methods of calculating overtime for piece-rate workers.
• An employer that chooses to use a basic rate must comply with all the very strict requirements listed at 29 C.F.R. §548.2.

In our overtime calculator, the overtime multiplier is expressed in %. According to the FLSA, the formula for calculating overtime pay is the nonexempt employee’s regular rate of pay x 1.5 x how much is overtime pay overtime hours worked. This calculation may differ in states that have requirements, such as double time, which are more favorable to the employee. 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.