How does US payroll calculate FLSA overtime?

Note: If you do not need to calculate FLSA overtime, you do not need to create overtime pay plans. You can use overtime pay codes on your time records to process overtime.

Overtime pay plans provide the parameters to calculate overtime for FLSA (Fair Labor Standards Act) requirements. FLSA is a United States act.

There are two options for calculating overtime pay plans:

Calculating overtime hours
Supplying overtime hours