FLSA Rates for Hospital Employees

Hospitals and nursing homes can enter into agreements with employees under which they use a 14 consecutive day period, rather than a seven-day period, as the basis for calculating overtime. The FLSA formula is the same as hourly employees.

Note: You must select the FLSA calendar with 14 FLSA period in days on the FLSA Period Definition page. For the FLSA feature to work, you must pay the 8/80 employees biweekly. When you pay some employees 8/80 and some on a seven-day period, you must assign employees to separate pay groups, based on the FLSA method of calculating premium pay.

Item

Description

Employee

Bill

Contractual hourly rate

12.00 USD

Workday

8 hours

FLSA period

14 days

Contractual Calculation

Earnings Code

Hours

Rate

Earnings

Regular

76

12.00 USD

912.00 USD

Overtime at 1.5

6.5

18.00 USD = 12.00 USD × 1.5

117.00 USD

Shift 2 differential

40

3.25 USD

130.00 USD

Shift 2 overtime at 1.5

4

22.875 USD = (12.00 USD + 3.25 USD) × 1.5

91.50 USD

Sick pay, shift 2

4

15.25

61.00 USD

Total wages

 

 

1311.50 USD

Bill's contractual premium pay is 69.50 USD:

  • 12.00 USD × 0.5 × 6.5 overtime hours = 39.00 USD.

  • 15.25 USD × 0.5 × 4.0 shift overtime hours = 30.50 USD.

FLSA Calculation

Earnings Code

Hours

Straight-Time Rate

Straight-Time Earnings

Regular

76

12.00 USD

912.00 USD

Overtime at 1.0

6.5

12.00 USD

78.00 USD

Shift 2 differential

0

3.25 USD

130.00 USD

Shift 2 overtime at 1.0

4

15.25 USD

61.00 USD

Sick pay, shift 2

0

 

0.00 USD (not used to calculate FLSA regular rate)

Totals

86.50

 

1181.00 USD

Calculations (Only use total hours of 86.50 worked for FLSA regular rate. Shift hours are already included in regular, and sick hours are not used):

  • FLSA rate:

    13.653 USD = 1181.00 USD / 86.50 total pay period hours.

  • Premium pay:

    71.67 USD = 13.653 USD × 0.5 × 10.5 total pay period overtime hours.

Because the FLSA overtime premium of 71.67 USD is greater than the contractual premium of 69.50 USD, use the FLSA rate to calculate Bill's overtime.