How to Calculate the Regular Rate of Pay

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Regular Rate of Pay Calculator

Calculate the weighted average rate for overtime compliance.

(Commissions, production bonuses, shift differentials)

Total Compensation: $0.00
Regular Rate of Pay: $0.00 /hr
Overtime Rate (1.5x): $0.00 /hr
Estimated Total Weekly Pay: $0.00

How to Calculate the Regular Rate of Pay

The "Regular Rate of Pay" is a critical calculation under the Fair Labor Standards Act (FLSA). It is not simply the employee's base hourly wage. Instead, it represents the hourly rate that includes almost all remuneration for employment paid to the employee.

This rate is the foundation for calculating overtime pay. If an employee works more than 40 hours in a workweek, they must be paid at least 1.5 times their regular rate—not just their base rate—for those extra hours.

The Formula

To find the regular rate of pay, use the following formula:

(Total Straight-Time Earnings + Nondiscretionary Bonuses + Commissions) ÷ Total Hours Worked = Regular Rate of Pay

What to Include in the Calculation

  • Base Hourly Pay: The standard rate for all hours worked.
  • Nondiscretionary Bonuses: Bonuses promised in advance to induce employees to work more steadily or efficiently (e.g., attendance bonuses, production bonuses).
  • Commissions: Payments based on sales or performance.
  • Shift Differentials: Extra pay for working undesirable shifts (e.g., night shifts).

What to Exclude

  • Discretionary Bonuses: Sums paid as gifts at a holiday or special occasion where the amount is not determined by contract or promise.
  • Paid Time Off: Payments made for occasional periods when no work is performed (vacation, holiday, illness).
  • Expense Reimbursements: Payments for travel or other business expenses.

Example Calculation

Imagine an employee earns $20.00 per hour and works 50 hours in one week. They also earned a $100.00 production bonus that week.

  1. Base Pay: 50 hours × $20 = $1,000
  2. Add Bonus: $1,000 + $100 = $1,100 (Total Remuneration)
  3. Divide by Hours: $1,100 ÷ 50 hours = $22.00 (Regular Rate of Pay)
  4. Overtime Premium: $22.00 × 0.5 = $11.00 per OT hour.
  5. Total Weekly Pay: $1,100 + (10 hours × $11.00) = $1,210.00.
function calculateRegularRate() { var baseRate = parseFloat(document.getElementById('baseRate').value); var totalHours = parseFloat(document.getElementById('totalHours').value); var otherComp = parseFloat(document.getElementById('otherComp').value); // Default to 0 if input is empty or NaN if (isNaN(baseRate)) baseRate = 0; if (isNaN(totalHours)) totalHours = 0; if (isNaN(otherComp)) otherComp = 0; if (totalHours <= 0) { alert("Total hours must be greater than zero."); return; } // Step 1: Calculate Total Straight-Time Compensation var totalStraightTime = baseRate * totalHours; var totalRemuneration = totalStraightTime + otherComp; // Step 2: Calculate Regular Rate of Pay (RRP) var regularRate = totalRemuneration / totalHours; // Step 3: Calculate Overtime Rate (1.5x) var otRate = regularRate * 1.5; // Step 4: Calculate Total Weekly Pay var totalWeeklyPay = 0; if (totalHours <= 40) { totalWeeklyPay = totalRemuneration; } else { var overtimeHours = totalHours – 40; // Total = (Regular Rate * 40) + (OT Rate * OT hours) // Or: Total Remuneration + (OT Hours * 0.5 * Regular Rate) totalWeeklyPay = totalRemuneration + (overtimeHours * 0.5 * regularRate); } // Display Results document.getElementById('resTotalComp').innerText = '$' + totalRemuneration.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resRegularRate').innerText = '$' + regularRate.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + ' /hr'; document.getElementById('resOTRate').innerText = '$' + otRate.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + ' /hr'; document.getElementById('resWeeklyPay').innerText = '$' + totalWeeklyPay.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('results').style.display = 'block'; }

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