FLSA overtime calculation

The payroll clerk at Two Rivers specifies these time records for Frida.

Example: Hours specified for FLSA overtime

Frida is assigned the bi-weekly non-exempt pay plan, which defines the regular hours in a work period as 40 and the overtime premium rate as 50 percent.

When the payroll manager runs the Calculate Overtime action in update mode, this calculation was completed for the work period ending January 7, 2023:

  1. Eligible Wages = 2163.84

    Eligible Hours = 42

  2. 2163.84 / 42 = 51.52 average weighted rate of pay

  3. 42 - 40 = 2 overtime hours

  4. 51.52 x 50% x 2 = 51.52 overtime pay

  5. Premium Credit = $0.00

  6. 51.52 - $0 = 51.52 overtime due to the employee

This calculation was completed for the work period ending January 14, 2023:

  1. Eligible Wages = 2266.88

    Eligible Hours = 44

  2. 2266.88 / 44 = 51.52 average weighted rate of pay

  3. 44 - 40 = 4 overtime hours

  4. 51.52 x 50% x 4 = 103.04 overtime pay

  5. Premium Credit = 0.00

  6. 103.04 - $0 = 103.04 overtime due to the employee

    Example: FLSA overtime calculated for Frida

These overtime records were created for the overtime due to the employee:

Example: FLSA overtime time records created for Frida