What is overtime pay?
Overtime pay is premium or extra money paid to employees for all hours worked over 40 in a workweek. Overtime pay must be at least one and one-half times the regular rate of pay for all overtime hours. J. J. Keller’s Human Resources Management Guide: An Essential Tool for Managing Day-to-Day HR Responsibilities addresses FLSA requirements.
Overtime pay is compensation for working more than 40 hours in a week. Overtime pay is normally calculated by multiplying 1.5 by your normal hourly rate. If you are paid by salary, commission or by project, we can still figure out your regular rate of pay and determine what your overtime rate of pay should be. Additionally, your regular rate of pay may also include other work-related payments such as increased pay for working different shifts, bonuses, longevity pay, incentive pay and other non-discretionary payments.
