FLSA Rates for Salaried Employees

For fixed salaried hours, the FLSA Rate uses Standard Hours from Job Data and uses the Multiplication Factor of 1.5:

• FLSA Rate = (Regular Period Pay + Total Other FLSA Eligible Earnings) / Standard Hours.

• FLSA Overtime Pay = Overtime Hours × 1.5 × FLSA Rate.

• Weekly Wage Equivalent = Regular Period Pay × Pay Period Frequency Factor / Weekly Frequency Factor.

  If the employee doesn't work the whole FLSA work week, then the Weekly Wage equivalent will be prorated by the number of days worked divided by total work days in the week.

In this example Mary has Standard Hours of 40-hour workweek and work week of five days. The number of actual working days in the month does not matter, because for FLSA premium purposes, Mary's salary is calculated as a weekly wage. With Mary's Monthly Pay Period Earnings of 1200 USD, her Weekly Wage Equivalent is 276.92 USD (1200 USD × 12 / 52).

Mary worked two hours of overtime in week one and four hours of overtime in week three. She is entitled to overtime pay of 62.28 USD (6.92 USD × 1.5 × 6 hours). Her total check for the month is 1262.28 USD.

If Mary receives a bonus of 50 USD for week one, her hourly rate of pay for that week is 8.17 USD (= 276.92 USD + 50 USD / 40). She receives overtime pay of 24.51 USD (8.17 USD × 1.5 × 2) for week one and 41.52 USD (6.92 USD × 1.5 × 4) for week three. Her total check for the month is 1316.03 USD.

The Additional Information group box of the FLSA Pay Data page displays the standard hours in FLSA Hours and the weekly wage equivalent earnings in FLSA Earns.

For salaried unspecified hours, FLSA Rate uses actual hours worked and multiplication factor of .5:

• FLSA Rate = (Regular Period Pay + Total Other FLSA Eligible Earnings) / Total Hours Worked.

• FLSA Overtime Premium Pay = Overtime Hours × .5 × FLSA Rate.

  If the employee is paid Monthly or Semimonthly, the Weekly Wage Equivalent needs to be calculated using the same formula as specified for Fixed Hours.

In the following example, Mary receives 1200 USD per month for however many hours her job requires, but she is entitled to overtime if she works more than 40 hours in a week. Her weekly wage equivalent is 276.92 USD (1200 USD × 12 / 52). She works three hours of overtime in week one and five hours of overtime in week three.

The Department of Labor allows the use of a Basic Rate Formula to calculate the regular rate of pay for semimonthly or monthly salaried employees, if the employee agrees. With the Basic Rate Formula, you calculate a salaried employee's FLSA rate using the following formula:

• FLSA rate = pay period salary / number of days in the pay period / number of hours in a normal workday.

• FLSA overtime pay = overtime hours × 1.5 × FLSA rate.

The workday hours come from the employee's Job Data record:

Mary works two hours of overtime in week one and four hours of overtime in week three. She is entitled to overtime pay of 58.68 USD (6.52 USD × 1.5 × 6 hours). Her total check for the month is 1258.68 USD. In a month with only 20 workdays, Mary's FLSA rate is 7.50 USD (1200 USD / 20 / 8). If she works six hours of overtime, her overtime pay is 67.50 USD (7.50 USD × 1.5 × 6 hours) and her total check for the 20-day month is 1267.50 USD.

If Mary receives a bonus of 50 USD in a month with 20 workdays, her FLSA rate is 7.81 USD ((1200 USD + 50 USD) / 20 / 8). If she works six hours of overtime, her overtime pay is 70.29 USD (7.81 USD × 1.5 × 6 hours) and her total check for the month is 1320.29 USD.

The Additional Information group box of the FLSA Pay Data page displays the days in period, work day hours, and pay period earnings.