Avoid painful data entry and costly mistakes by automating your payroll process. Time tracking apps like Workyard automatically integrate with popular payroll systems such as QuickBooks Online, Quickbooks Desktop, ADP, Paychex, Paylocity, Sage & more accounting systems. Payroll automation reduces the amount of time you spend on your payroll management while also reducing the potential for mistakes like overpaying overtime.

Just about 50 million of them are completely exempt from laws governing overtime. Let’s assume you paid an employee $20 per hour for 30 hours of work and $25 per hour for 20 hours of work within a work week. Overtime in Vermont applies to employers with two or more employees. Overtime in Minnesota applies when over 48 hours are worked in a week unless the employee is covered by the FLSA. Overtime in Michigan applies to employers with two or more employees. Overtime in Kansas applies when over 46 hours are worked in a week unless the employee is covered by the FLSA.

Overtime Calculations: Key Situations & Considerations

You have a traveling sales rep who earns commissions for each sale they make, and commission can count as salary. But for whatever reason, the sales rep doesn’t meet the DOL’s requirements for exempt employees who earn a commission.

Compute the “hourly regular rate of pay” by dividing the “total remuneration” paid to an employee in the workweek by the number of hours in the workweek for which such compensation is paid. The employee must receive at least 0.5 times their regular rate of pay for overtime hours worked. Since the salary is intended to compensate for whatever hours are worked in the workweek, their regular rate will vary from week to week. To arrive at their regular rate, divide the number of hours worked in the workweek into the amount of the salary to obtain the applicable hourly rate for the week.

An Important Change in Overtime Regulations for Exempt Employees

While some employees might feel guilty for exceeding their standard number of hours, Forbes found 89 percent of employees waste time at work, which can add to an employer’s bottom line. Review your pay practices to ensure that you are calculating and paying overtime in accordance with state and federal laws.

Your business’s overtime rate is the standard 1.5 x the hourly rate. For the employee who makes $15 per hour and works 40 hours per week, their gross pay is $600 ($15 x 40). If they work any number of minutes or hours above 40 hours, you must compensate them for that work at your overtime rate. Not only does this help you to track overtime pay, but it also helps you to see where your employees are spending their time. If my employee works unauthorized overtime, am I obligated to pay for it? You can discipline an employee who violates your policy by working overtime without the required authorization. However, wage and hour laws require that you compensate the employee for any hours you “suffer or permit” the employee to work.

Infographic – COVID-19 and the Jordanian Garment Sector

Where monthly how to calculate overtime pays are comprised of basic wages and fixed allowances, 100% of the monthly wage is included when calculating overtime wages. In France, any hours worked over 35 a week have to be paid at an overtime rate. Employers must pay employees for the first eight hours of overtime at 1.25 times a worker’s regular wage and 1.5 times the usual wage after that. What is my “regular rate of pay” for figuring out how much overtime is owed? If you are paid on an hourly basis, that amount is the regular rate. In this example, the employee had 10 hours of overtime hours worked . So their additional overtime pay will be their weighted overtime rate multiplied by their overtime hours.

If your company doesn’t already allow remote work, now might be the time to start considering it. With today’s technology, there’s no reason why employees can’t work from home or another location outside of the office.