Time and a half overtime pay is calculated on any hours worked over 40 per week. Therefore, if an employee is a not exempt salaried employee or an hourly wage employee, they would be eligible for time and a half overtime pay. First things first, you need to find the employee’s regular hourly rate. Divide the employee’s salary by the number of hours you expected the employee to work (34 hours).
Overtime – formal definition
- This time and a half calculator is used to calculate your overtime or holiday pay on the basis of a standard hourly rate.
- Every company can set itsown holiday policy, but there are some common trends.
- You expect the employee to work 34 hours this week, but they wind up working 45.
- If you are paid $16 per hour, your time and a half pay will equate to $24 per hour ($16 × 1.5).
Almost everybody in the working-age population knows and understands what overtime is. In some professions, working overtime is very common (or even mandatory!). Examples of personnel often working overtime might be construction workers, IT professionals, plant managers, and investment-related workers. Read the FLSA fact sheet[1] to learn more about each of these exemptions and if they apply to you. Laura started her career in Finance a decade ago and provides strategic financial management consulting.
What Is Time And A Half? And How Do You Calculate It?
However, some states have more stringent overtime laws than the federal government. Overtime pay and time and a half pay can be similar in that they both involve compensation for extra hours worked. This provision is designed to ensure fair compensation for overtime work under federal and state labor law. Keep in mind that while someone gets a salary, it does not automatically determine them as exempt. Every individual has to perform qualifying duties to be classified as an exempt one. 🙋 Make sure to use our gross to net calculator to determine how much you could take home from your total pay after the deduction of taxes.
- The requirements and conditions for overtime pay are set in the federal Fair Labor Standards Act (FLSA).
- To calculate an employee’s overtime rate of pay, multiply their regular rate by 1.5.
- What is more, you will discover what is time and a half pay, who is an exempt employee is, and some examples of exempt jobs.
- In retail, employees require a police permit and state approval to work on Christmas, Columbus Day,Thanksgiving, and Veteran’s Day.
- If an employee’s primary duty is making sales, they are exempt.
How do I calculate time and a half plus my standard salary?
It is easy to calculate the double time salary by multiplying the regular standard rate with “2”. This time and a half calculator is used to calculate your overtime or holiday pay on the basis of a standard hourly rate. The calculator takes your standard weekly, bi-weekly, semi-monthly, and monthly pay figure and determines the overtime pay at 1.5 times your regular rate.
Calculate percentage additions and deductions with our handy calculator.
Overtime Calculator
There’s a common misconception that paying an employee a salary means they’re exempt from overtime wages. You can have salaried nonexempt employees who are eligible for overtime pay. Because you already accounted for the overtime what is time and a half for $23 an hour hours once in the regular hourly rate, you must multiply the regular rate of pay by 0.5 instead of 1.5. Calculate the employee’s regular hourly rate by dividing the weekly salary by the total number of hours worked.
What Is Time and a Half Pay?
- It’s important to keep in mind that the FLSA is the legal framework enforced on the federal level by the US Department of Labor.
- In Massachusetts, this law also applies to some state holidays.
- People were also quick to point out that White Sands is the name of a park in New Mexico, the same state where the first Half-Life game is based.
- If a worker is getting time and a half for their overtime pay, they are receiving 50% more than their regular pay per hour.
- Calculate percentage additions and deductions with our handy calculator.
- This chart provides you with quick reference values for both the time and a half rate and time and a half pay for various standard hourly rates.
Or you might find our budget calculator, especially when you plan to monitor or track your expenses. Once you have calculated your total pay, you can decide what to do with it – are you planning to spend it or maybe invest it? You can check out our investment calculator if you decide to invest part of your total pay.
