Basic Rate Formula for Fixed Salaried Hours

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:

Employee	Pay Period Earnings	Days in Period	Workday Hours	FLSA Regular Rate
Mary	1200.00 USD	23	8 hours	6.52 USD = 1200 USD / 23 / 8

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.