Regular Rate Calculation

Regular Rate of Pay Calculator (FLSA)

Calculation Results

Total Hours Worked: 0
Total Straight-Time Earnings: $0.00
Regular Rate of Pay: $0.00
Overtime Premium (Half-time): $0.00
Total Gross Pay: $0.00

Understanding the Regular Rate of Pay

In payroll and employment law, particularly under the Fair Labor Standards Act (FLSA), the "Regular Rate of Pay" is a critical metric. Many employees mistakenly believe that their overtime pay is simply 1.5 times their base hourly wage. However, if an employee receives bonuses, commissions, or shift differentials, the "Regular Rate" must be recalculated to include these amounts before determining the overtime premium.

The Regular Rate Formula

The calculation follows a specific mathematical sequence to ensure employees are compensated fairly for all earnings during a workweek:

  1. Total Straight-Time Earnings: (Total Hours Worked × Base Rate) + Non-discretionary Bonuses + Commissions.
  2. Total Hours: The sum of all hours worked (Straight time + Overtime).
  3. Regular Rate: Total Straight-Time Earnings ÷ Total Hours Worked.
  4. Overtime Premium: Regular Rate × 0.5 × Overtime Hours.
  5. Total Gross Pay: Total Straight-Time Earnings + Overtime Premium.

What to Include in the Regular Rate?

According to the Department of Labor, the regular rate must include all remuneration for employment except for specific statutory exclusions. Common inclusions are:

  • Non-discretionary Bonuses: Bonuses promised in advance to induce employees to work more steadily or rapidly (e.g., attendance bonuses, production bonuses).
  • Commissions: Payments based on a percentage of sales or profits.
  • Shift Differentials: Extra pay for working undesirable hours (e.g., night shifts).

Example Calculation

Let's say an employee earns $20.00 per hour and works 50 hours in a week (40 straight, 10 overtime). They also earned a $100.00 production bonus.

  • Base Pay for all hours: 50 hours × $20 = $1,000.
  • Total Straight-Time Earnings: $1,000 + $100 bonus = $1,100.
  • Regular Rate: $1,100 ÷ 50 hours = $22.00/hour.
  • Overtime Premium: $22.00 × 0.5 × 10 OT hours = $110.
  • Total Gross Pay: $1,100 + $110 = $1,210.00.

Without including the bonus in the regular rate, the employee would only have earned $1,200 ($1,000 base + $100 bonus + $100 basic OT). The "Regular Rate" rule ensures the bonus value is reflected in the overtime pay.

function calculateRegularRate() { var baseRate = parseFloat(document.getElementById("baseRate").value) || 0; var straightHours = parseFloat(document.getElementById("straightHours").value) || 0; var overtimeHours = parseFloat(document.getElementById("overtimeHours").value) || 0; var bonuses = parseFloat(document.getElementById("bonuses").value) || 0; var commissions = parseFloat(document.getElementById("commissions").value) || 0; var totalHours = straightHours + overtimeHours; if (totalHours 0) { otPremium = regularRate * 0.5 * overtimeHours; } // 4. Final Gross Pay var totalGrossPay = totalEarnings + otPremium; // Display Results document.getElementById("totalHoursOut").innerText = totalHours.toFixed(2); document.getElementById("totalEarningsOut").innerText = "$" + totalEarnings.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("regularRateOut").innerText = "$" + regularRate.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("otPremiumOut").innerText = "$" + otPremium.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("totalGrossPayOut").innerText = "$" + totalGrossPay.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById("resultArea").style.display = "block"; }

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