Determine How Much Overtime an Employee Is Owed

When to Use This Workflow

Use the Determine How Much Overtime an Employee Is Owed workflow to ascertain whether a nonexempt employee must be paid overtime and, if so, calculate how much he or she is due.

This workflow walks an employer through the process of:

  • Establishing the appropriate overtime threshold, whether it is the standard 40-hour limit that applies under the Fair Labor Standards Act and most state laws, or state-specific limits that apply in Alaska, California, Colorado, Kentucky, Massachusetts, Nevada, Oregon and Rhode Island;
  • Adding up forms of compensation that must be included in an employee's regular rate of pay, including base compensation such as hourly wages or salaries, as well as other forms of remuneration such as commissions or on-call pay; and
  • Calculating the overtime premium due to the employee.

An employer should follow the steps in the workflow carefully and consult with counsel when appropriate.

Key Steps