FLSA Regular Rate & Overtime Calculator

Compute the true regular rate and overtime premium per 29 CFR Part 778

1. Hours Worked & Base Rates

Enter all hours actually worked. Do not include PTO, vacation, or sick time here.

2. Additional Includable Earnings

Nondiscretionary bonuses, commissions, shift differentials. These increase the regular rate.

3. Excluded Earnings

PTO pay, discretionary bonuses, gifts. Added to total pay but do not affect regular rate.

Ready

About the FLSA Regular Rate of Pay & Overtime Calculator

Payroll administrators can correctly calculate overtime compensation involving multiple pay rates and non-discretionary bonuses using this FLSA regular rate calculator. By aggregating all includable earnings and dividing by total hours worked, you determine the true regular rate of pay. Processing weighted average overtime accurately prevents wage theft claims and ensures strict Department of Labor compliance.

How it works

  1. Enter the employee's total hours worked for the standard workweek.
  2. Input the standard hourly rate, or add multiple different hourly rates if the employee worked various job roles.
  3. Add any includable supplementary compensation, such as shift differentials, commissions, or non-discretionary bonuses.
  4. Review the calculated regular rate of pay and the resulting half-time overtime premium required for all hours over 40.

Frequently asked questions

What is the difference between regular rate and base rate?

The base rate is the agreed-upon hourly wage. The regular rate is the calculated hourly equivalent of all includable compensation earned in a workweek (including bonuses and commissions) divided by the total hours worked.

Are all bonuses included in the regular rate?

No. True discretionary bonuses are excluded. However, non-discretionary bonuses (such as those based on a contract, promise, or set performance metrics like attendance or production) must be included in the regular rate calculation.

How do you calculate overtime for an employee working two jobs at different rates?

You must use the weighted average method. Divide the total straight-time earnings from both jobs by the total hours worked to find the regular rate, then pay half that exact rate for all overtime hours.

What is a bonus true-up?

When a non-discretionary bonus covering multiple weeks is paid, it retroactively increases the regular rate for those specific weeks. A true-up calculates and pays the additional overtime premium owed based on this newly increased rate.

References