Terms and Definitions

These definitions aid in the discussion of FLSA calculations:

Term	Definition
FLSA rate	FLSA rate = (regular period pay + overtime pay at contractual + total other FLSA eligible earnings) / total FLSA eligible hours. Note: If an employee's FLSA rate is less than the minimum wage, the minimum wage (federal, state, or jurisdiction if the Minimum Wage Jurisdiction option is enabled in the employee’s pay group, whichever is the highest) is used for overtime compensation rather than the FLSA rate. See Also Understanding Minimum Wages for Jurisdictions.
Contractual rate	Equivalent to the hourly rate or compensation rate.
Premium	The extra amount of the contractual rate paid for overtime, stated as a percentage. The FLSA premium is fixed at 0.5.

Term

Definition

FLSA rate

FLSA rate = (regular period pay + overtime pay at contractual + total other FLSA eligible earnings) / total FLSA eligible hours.

Note: If an employee's FLSA rate is less than the minimum wage, the minimum wage (federal, state, or jurisdiction if the Minimum Wage Jurisdiction option is enabled in the employee’s pay group, whichever is the highest) is used for overtime compensation rather than the FLSA rate.

Contractual rate

Equivalent to the hourly rate or compensation rate.

Premium

The extra amount of the contractual rate paid for overtime, stated as a percentage. The FLSA premium is fixed at 0.5.