Calculate How Much Overtime an Employee Is Owed

Key Points

  • As a general rule, nonexempt employees are owed one and one-half times their regular rate of pay for all hours worked beyond 40 in a workweek.
  • There are many variations on this basic formula, such as the fluctuating workweek method, basic rate of pay by agreement, Belo plans and alternative work periods.
  • When determining the regular rate of pay, all forms of remuneration must be included except certain payments such as gifts; holiday, vacation or sick pay; expense reimbursements; and discretionary bonuses.

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