Alternative Overtime Calculation Example

This table displays the pay data for an hourly employee:

Earnings Code	Hours	Straight-Time Rate	Straight-Time Earnings
Regular	40	6.00 USD	240.00 USD
Overtime at 1.5	6	6.00 USD	36.00 USD
Overtime at 2.0	2	6.00 USD	12.00 USD
Bonus			12.00 USD
Totals	48		300.00 USD

Calculations for the Higher of FLSA /Contractual Rule

This is how the system calculates the overtime when the FLSA rule is Higher of FLSA/Contractual:

• Alternative rate:

  6.25 USD = 300.00 USD / 48 total weekly hours.

• Contractual Premium:

  Overtime at 1.5: 18.00 USD = 6.00 USD × 0.5 × 6 overtime hours.

  Overtime at 2.0: 12.00 USD = 6.00 USD × 1.0 × 2 overtime hours.

• Alternative Premium:

  Overtime at 1.5: 18.75 USD = 6.25 USD × 0.5 × 6 overtime hours. This is higher than contractual premium of $18.00 USD, so the alternative rate is used for overtime premium calculation.

  Overtime at 2.0: 12.50 USD = 6.25 USD × 1.0 × 2 overtime hours. This is higher than contractual premium of $12.00 USD, so the alternative rate is used for overtime premium calculation.

Calculations for Always Use FLSA Premium Rule

This is how the system calculates the overtime when the FLSA rule is Always Use FLSA Premium:

• Alternative rate:

  6.25 USD = 300.00 USD / 48 total weekly hours.

• Alternative Premium:

  Overtime at 1.5: 18.75 USD = 6.25 USD × 0.5 × 6 overtime hours.

  Overtime at 2.0: 12.50 USD = 6.25 USD × 1.0 × 2 overtime hours.