Overtime is the amount of time that an employee works beyond normally scheduled work-time.
The number of normal working hours might be determined by the best practices of a profession, legislation, or by the best practices of a profession. Most often, the working day lasts 8 hours, and the working week is equal to 40 hours.
Overtime Pay for Exempt and Nonexempt Workers
Overtime payments are commonly referred to as the overtime premium or overtime rate of pay. The most common rate for overtime hours is time and a half, which is 50% more than the standard salary of an employee. This means that for every hour of overtime you get the equivalent of a 1.5 regular hourly rate.
In the United States, under the Fair Labor Standards Act, certain jobs are excluded from overtime compensation requirements. They are called exempt and these exempt positions are excluded from minimum wage, overtime regulations, and other rights and protections afforded nonexempt workers.
Consequently, employees who are usually entitled to overtime pay are called non-exempt employees. Typically, only executive, supervisory, professional, or outside sales positions are exempt positions
Free Overtime Calculator
You can download a free overtime calculator that will calculate your overtime rate of pay based on your regular hourly rate multiplied by the OT multiplier.
This overtime calculator is a tool that reveals how much you will earn if you have to stay at work longer. Note that this value may vary in different countries and companies, so make sure to enter the correct multiplier in the overtime calculator.
There are two options:
- The option to not account for overtime if the total number of weekly hours is smaller than the entered number
- The option to account for overtime depending on the number of hours worked on each individual day if the total number is smaller than the entered number
How to Calculate Overtime Pay?
First of all, the calculator calculates your hourly overtime pay by multiplying hourly regular pay and the corresponding multiplier.
Once you know this value, it calculates the total overtime salary by multiplying the overtime hourly rate and the number of overtime hours and adding the regular salary.
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