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Overtime pay laws, Overtime Lawyer Wage Attorney > Fair Labor Standards Act > How is overtime calculated under the FLSA?




Search to Learn about Employee Overtime Pay Laws

According to 29 U.S.C.S. § 207(a)(1) of the federal Fair Labor Standards Act, employees who work more than forty hours a week are entitled to overtime pay at one and one-half times their regular rate of pay. The question, then, becomes what is the regular rate of pay?

As a general matter, the regular rate actually paid to a salaried employee is obtained by dividing the employee's weekly wage by the number of hours worked each week. For example, suppose an employee makes $1000 per week. In order to calculate the regular rate of pay for purposes of overtime pay, the employer must first divide the $1000 by the number of hours the employee worked in the week. Suppose the employee worked 50 hours, the regular rate of pay would be $1000/50=$20/hour. The overtime rate of pay would be $20/hour x 1.5 =$30/hour.

Importantly, bonuses, commissions and other forms of wages usually need to be included in the regular rate of pay when calculating the overtime pay under the Fair Labor Standards Act. 

Last updated on May 7, 2012 by Employment Lawyers BNB