Overtime Pay Formula:
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Definition: This calculator computes overtime pay at time-and-a-half rate based on hours worked and regular hourly wage.
Purpose: It helps employees and employers determine correct overtime compensation according to labor laws.
The calculator uses the formula:
Where:
Explanation: The regular rate is multiplied by 1.5 to get the overtime rate, which is then multiplied by hours worked.
Details: Accurate overtime calculation ensures fair compensation and compliance with labor regulations like the Fair Labor Standards Act (FLSA).
Tips: Enter the total overtime hours worked and your regular hourly wage. All values must be > 0.
Q1: When does time-and-a-half apply?
A: Typically for hours worked beyond 40 in a workweek (U.S.), but check local laws as some states have daily overtime rules.
Q2: Is 1.5 the only overtime rate?
A: No, some situations require double time (2x), but 1.5 is the federal standard for most overtime.
Q3: Are bonuses included in overtime calculations?
A: Some bonuses must be included in the regular rate calculation - consult labor laws for specifics.
Q4: What if I have multiple pay rates?
A: Use the weighted average of all rates for overtime calculations.
Q5: Does this calculator include taxes?
A: No, this shows gross overtime pay before any deductions.