Fixed Salaried Hours
For fixed salaried hours, the FLSA Rate uses Standard Hours from Job Data and uses the Multiplication Factor of 1.5:
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FLSA Rate = (Regular Period Pay + Total Other FLSA Eligible Earnings) / Standard Hours.
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FLSA Overtime Pay = Overtime Hours × 1.5 × FLSA Rate.
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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).
| Employee | Pay Period Earns | Weekly Wage Equivalent | Hours Per Week | FLSA Regular Rate |
|---|---|---|---|---|
|
Mary |
1200.00 USD |
276.92 USD |
40 |
6.92 USD = 276.92 / 40 |
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.
Note:
The multiplication factor used to calculate the overtime is 1.5, rather than 0.5, because the straight-time portion of the overtime is not used to determine the FLSA rate.
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.