Pay overtime with the employee's regular pay.
According to the United States Department of Labor, if an employer requires his employees to work overtime, he must pay them at their overtime rate. Under the Fair Labor Standards Act (FLSA), executive, professional, administrative, outside sales workers and certain computer employees are exempt from overtime pay. In many instances, these employees are paid on a salaried basis. Hourly employees are generally qualified for overtime pay, which is paid at time and a half.
Instructions
1. Pay time exceeding 40 regular hours at time and a half. For instance, if the employee's regular pay rate is $10 per hour, and he has 40 regular and 8 overtime hours for the week, calculate as follows:
40 x $10 = $400 gross pay
8 x $15 ($10 x 1.5) = $120 overtime pay
The employee must work 40 regular hours to be eligible for overtime pay. For instance, if he works overtime on one day but works few hours on the remaining days of the week, resulting in less than 40 hours total for the week, he is not eligible. Since his total hours are less than 40, pay all hours at his regular rate, including the day he worked overtime.
2. Pay overtime if the employee incurs overtime because of rounding. Employers are allowed to round payroll minutes up and down to the nearest quarter hour. For instance, say the employee's time sheet for Monday through Friday looks like this: in at 7:10 a.m., unpaid lunch for 1 hour and out at 5 p.m. Round 7:10 up to 7:15 and pay her 8 hours and 45 minutes for each day. This amounts to 40 regular hours and 3.75 overtime hours for the week.
3. Include break periods when calculating regular and overtime pay. The U.S. Department of Labor notes that federal law does not require employers to give coffee breaks. If the employer gives breaks, the FLSA considers it paid time.
4. Ensure the overtime is paid with regular hours worked. For instance, if the employee has 40 regular and 6 overtime hours in a given week, both should be paid in his upcoming paycheck.
Tags: regular hours, employee regular, instance employee, overtime hours, regular overtime