HOW TO COMPUTE FLSA OVERTIME PAY
Background
Overtime pay for non-exempt employees is computed under the Fair Labor Standards Act (FLSA), subject to some special rules for Federal employees. Under the FLSA, overtime pay is determined by multiplying the employee's "straight time rate of pay" by all overtime hours worked PLUS one-half of the employee's "hourly regular rate of pay" times all overtime hours worked. All overtime work that is ordered or approved or "suffered or permitted" must be compensated. (See 5 CFR part 551.)
Include a special salary rate, locality rate of pay, or interim geographic adjustment continued rate of pay in "total remuneration" and "straight time rate of pay" when computing overtime pay under the FLSA. Compute the "hourly regular rate" by dividing the "total remuneration" paid to an employee in the workweek by the number of hours in the workweek for which such compensation is paid.
Pay Limitations
The limitation on an hourly rate of overtime pay under title 5, United States Code, does not apply to overtime pay under the FLSA. Also, the maximum biweekly or annual earnings limitations on title 5 premium pay do not apply to FLSA overtime pay.
Computation
Multiply the straight time rate of pay by all overtime hours worked PLUS one-half of the employee's hourly regular rate of pay times all overtime hours worked. (See 5 CFR 551, subpart E.)
Example
Follow the steps below to compute FLSA overtime pay. The example below is based
on a GS 7, step 1, annual locality rate of pay of $33,071 (2004-RUS).
Total Hours of Work: |
52 hrs |
Overtime Work: |
12 hrs |
Night Work: |
40 hrs |
Sunday Work: |
8 hrs |
Hourly Rate of Basic Pay: |
$ 15.85 |
|
|
Total Remuneration: |
|
Basic Pay (40 hrs) |
= $ 634.00 |
Night Pay (40 hrs)
10% x $15.85 = $1.59
$1.59 x 40 hrs = $63.60 |
= $ 63.60 |
Sunday Pay (8 hrs)
25% x $15.85 = $3.96
$3.96 x 8 hrs = $31.68 |
= $ 31.68 |
Straight Time Pay
$15.85 x 12 hrs |
= $ 190.20 |
Total Remuneration |
= $ 919.48 |
|
|
Hourly Regular Rate: |
|
$919.48 / 52 hrs |
= $ 17.68 |
|
|
FLSA Overtime Pay: |
|
1 x $15.85 x 12 |
= $ 190.20 |
(.5 x $17.68) x 12 or $8.84 x 12 |
= $ 106.08 |
Total FLSA Overtime Pay |
= $ 296.28 |
|
|
Weekly Pay: |
|
Basic Pay |
= $ 634.00 |
Night Pay |
= $ 63.60 |
Sunday Pay |
= $ 31.68 |
FLSA Overtime Pay |
= $ 296.28 |
Total Weekly Pay |
= $ 1,025.56 |
