Calculating overtime will look different for hourly and salaried employees.

Hourly employees are protected under FSLA and must receive at least 1.5x their regular hourly wages for overtime. To calculate an hourly employee’s overtime for a given week, multiply the number of overtime hours worked by the overtime pay rate.

For example, if you make $20 an hour and worked 50 hours last week, you worked 10 overtime hours (50-40=10) at $30 per hour ($20 x 1.5).

10 hours x $30 per hour = $300 overtime

If a salaried employee is nonexempt based on FLSA criteria, they must receive overtime wages.

To calculate the overtime of a nonexempt salaried employee, let’s look at an example of an employee that makes $500 a week and works 50 hours (10 overtime hours).

  1. Calculate the regular hourly rate by dividing the weekly salary by the hours you expect the employee to work ($500/40 = $12.5). 
  2. Calculate the overtime hourly rate, typically time and a half, by multiplying the regular hourly rate by 1.5 ($12.5 x 1.5 = $18.75)
  3. Calculate overtime wages by multiplying the overtime hourly rate by the number of overtime hours, in this case, 10 ($18.75 x 10 = $187.50) 

The employee made $187.50 total in overtime.

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