Thursday 29 January 2015

How Is Overtime Calculated

40-Hour Workweek


Overtime can be based on different criteria, so check with your employer about which they use. Some will calculate overtime based on total hours worked for the week. The employer will determine how many hours over 40 you worked for that week and declare those as your overtime hours. Those additional hours then will be paid at the overtime rate determined by the employer, which can range from one and a half to two times the normal rate.


8-Hour Workday


Some employers determine that any hours you work in a day over 8 are overtime. California is one state that has determined that this rule applies statewide. The employer will total your number of hours over 8 for each individual day and combine these totals for the entire pay period. You will be paid the overtime rate for that combined total of hours.


Do You Qualify?


Employees can be declared to be exempt or non-exempt according to the Fair Labor Standards Act. If an employee is exempt, his employer is not required to pay him overtime. Some examples of jobs that can be considered exempt are executive, outside sales, administrative and computer software professional employees, to name just a few. Anyone who is declared a non-exempt employee must be paid at least one and a half times his regular pay rate for overtime hours worked. Even salaried employees who are non-exempt must be paid the overtime rate for the overtime hours they work.

Tags: overtime hours, overtime rate, paid overtime, paid overtime rate, employer will, half times, hours over