While the FSLA sets out its guidelines, the State rules must be adhered to. In many cases, salaried employees are exempt from overtime, but there are exceptions based on job role, salary level, and working hours. Exempt status means that a job doesn’t include overtime payment and/or that the employer can pay less than the minimum wage.

• Don’t forget that this is the minimum figure, as laid down by law.An employer may choose a higher rate of overtime pay.
• All non-exempt employees who work over 40 hours during a workweek must be paid at a rate of at least one and one-half times (typically referred to as time and a half) the employee’s regular hourly rate.
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• No permit is required to work on New Year’s Day, Labor Day, Memorial Day, or Columbus Day, but workers must be paidtime and a half.
• If all this math is making your head spin, don’t worry – you can use our time and a half calculator to doall the hard work for you.

What is overtime pay?

Let’s take a look at what the overtime entitlements are in the U.S. and how they can vary by state…

• Let’s go back to the example of Steve, who earns $20 an hour, or $30 when he gets time and a half.
• Overtime pay can be a complex issue, especially when you factor in the different state and federal overtime laws.
• Under DOL rules, a tip credit is determined by taking the federal hourly minimum wage rate ($7.25) minus the minimum cash wage for tipped employees ($2.13), which works out at $5.12 per hour.
• Besides all of that, let’s take a look at the formal overtime definition.
• Human Resources know that people are naturally limited and in general, can’t sustain the same productivity level they had at the start of their shift.

Calculate Overtime Pay for an Hourly Employee

If you have any problems using our time and a half calculator, please contact us. If all this math is making your head spin, don’t worry – you can use our time and a half calculator to doall the hard work for you. Select Stick or Unstick to stick or unstick the help and tools panel.

How To Calculate Overtime Pay (2024 Update)

Whether it’s a boon or a bane, the good news is that it means more money for the employee. Use this overtime calculator to determine how much extra pay you’ll receive for working overtime. When Jane gets time and a half, her hourly rate increases to $18 per hour (12 x 1.5) for the extra hours she works.

Calculating Overtime for Hourly Employees

If you are paid $15 per hour, you will make $22.50 per hour when being paid time and a half ($15 × 1.5) and $30 when earningdouble time. Nonexempt employees who get paid salaries must work the number of hours every week as stated in their employment agreement. But again, if you use your overtime wages to splurge on non-essentials, it is you who is limiting your compensation, not your employer. Enter a rate of return in the following form and click the “Calculate Time to Double” button to see how long it will take to double your overtime wages if you invest them instead of spending them.

Calculate Overtime Pay for Hourly and Salaried Employees

Finally, the calculator will even estimate your total annual overtime wages based on the number of OT hours you work per pay period, and on your pay period type. It’s advisable to investigate the overtime laws of what is overtime for $11 an hour your specific state. At the federal level, overtime is primarily regulated on a weekly basis. Nevertheless, certain states and territories mandate overtime for any day inwhich an employee works more than 8 hours.

Additional Topics

This is your regular hourly rate of pay multiplied the by the overtime multiplier entered above. So, when she gets paid double time, her hourly rate increases to $24 per hour (12 x 2) for the additional hours. Check your state department of labor website for information on overtime pay requirements in your location. Double time is a rate of pay double the usual amount a person receives for normal hours worked.

• You can check out our investment calculator if you decide to invest part of your total pay.
• Some employers, for example, pay “double time” (twice the normal hourly rate) for holidays.
• Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen.
• Get access to Paycor’s overtime resources, including an overtime calculator.
• But there are some exceptions you need to be aware of when you calculate overtime pay.

For additional help understanding overtime rules, check out Paycor’s Department of Labor solution page, which offers you peace of mind by providing everything you need in one place. Get access to Paycor’s overtime resources, including an overtime calculator. Department of Labor regulates overtime and other pay provisions through the Fair Labor Standards Act.

Some companies also offer time and a half to an employee that works on holidays. However, all these rules can vary between statesand between companies. Wouldn’t life be easier if employers offered double pay for overtime and holidays? Instead, you’re more likely to find yourselfnavigating the confusing world of time and a half – that is to say, pay that’s 50% higher than your standard rate.