FLSA Regular Rate of Pay Calculator
Accurately calculate the "Regular Rate" and overtime premiums required under the Fair Labor Standards Act.
Enter total hours worked in the single workweek.
Attendance bonuses, production bonuses, etc.
Shift differentials, retro pay, etc. Exclude gifts and discretionary bonuses.
Regular Rate of Pay:
$0.00 / hr
Total Straight-Time Earnings:
$0.00
Total Overtime Hours:
0.00
Overtime Premium Rate (0.5x):
$0.00 / hr
Total Overtime Premium Due:
$0.00
Total Gross Weekly Pay:
$0.00
How to Calculate Regular Rate of Pay Under FLSA
The Fair Labor Standards Act (FLSA) requires that non-exempt employees receive overtime pay at a rate of not less than one and one-half times their "regular rate" of pay for hours worked over 40 in a workweek. A common payroll error is assuming the regular rate is simply the employee's hourly base wage.
The Regular Rate is a mathematical calculation that includes all remuneration for employment paid to, or on behalf of, the employee, divided by the total hours worked in that week. It is an hourly metric derived from total earnings, not just the contractual hourly wage.
The Regular Rate Formula
The standard formula for calculating the Regular Rate is:
Regular Rate = (Total Straight-Time Pay + Includable Bonuses + Commissions) ÷ Total Hours Worked
What Must Be Included?
When calculating the Regular Rate, you must include most forms of compensation, such as:
- Base Hourly Wages: The standard earnings for all hours worked.
- Non-Discretionary Bonuses: Bonuses promised based on performance, attendance, accuracy, or production. If the employee knows the criteria to earn it, it is likely non-discretionary.
- Commissions: All commission payments earned in the workweek.
- Shift Differentials: Extra pay for working nights or weekends.
- Retroactive Pay: Delayed payment for work performed in previous periods.
What Can Be Excluded?
The FLSA allows specific exclusions from the Regular Rate calculation, including:
- Discretionary Bonuses: Payments where both the fact of payment and the amount are determined at the sole discretion of the employer, and not pursuant to any prior contract or promise.
- Gifts: Payments made as gifts (e.g., holiday turkeys or small amounts) not dependent on hours worked or production.
- Paid Time Off (PTO): Pay for vacation, illness, or holidays where no work is performed.
- Expense Reimbursements: Repayment for business expenses incurred by the employee.
Example Calculation
Consider an employee earning $20.00/hr who works 50 hours in a week. They also earned a $100.00 production bonus.
- Calculate Total Straight-Time Pay: 50 hours × $20.00 = $1,000.00
- Add Inclusions: $1,000.00 (Base) + $100.00 (Bonus) = $1,100.00 Total Remuneration
- Calculate Regular Rate: $1,100.00 ÷ 50 hours = $22.00/hr
- Calculate Overtime Premium: The employee is owed an extra 0.5× the Regular Rate for the 10 overtime hours.
Premium Rate: $22.00 × 0.5 = $11.00/hr
Total Premium: 10 hours × $11.00 = $110.00 - Total Pay: $1,100.00 (Base + Bonus) + $110.00 (OT Premium) = $1,210.00
Note: Alternatively, you can calculate it as 40 hours @ $22.00 + 10 hours @ $33.00 ($22.00 × 1.5). The result is the same ($880 + $330 = $1,210).