How to Use the Regular Rate of Pay Calculator
Under the Fair Labor Standards Act (FLSA), overtime pay for non-exempt employees isn't just 1.5 times your base hourly rate — it's 1.5 times your "regular rate of pay," which must include non-discretionary bonuses, commissions, and shift differentials, not just straight-time wages. This calculator computes that regular rate and the resulting overtime premium.
Enter your weekly base pay (assumed to cover a standard 40-hour week), any non-discretionary bonus or incentive pay for the week, and your total hours worked. The calculator divides your total straight-time compensation by 40 to get the regular rate, then applies a 1.5x premium to every hour worked beyond 40.
Getting the regular rate wrong is one of the most common FLSA wage-and-hour violations — leaving out a non-discretionary bonus when calculating overtime can trigger back-pay liability. If your pay structure is more complex (piece-rate, multiple job rates, or a fluctuating workweek), consult the Department of Labor's guidance or a payroll professional for the exact formula that applies.
Frequently Asked Questions
Base hourly or salary pay plus non-discretionary bonuses, shift differentials, and commissions must be included. Purely discretionary bonuses (like a surprise holiday gift) are generally excluded.
This calculator assumes your weekly base pay is meant to compensate a standard 40-hour week. If your base pay instead covers a different number of straight-time hours, the divisor should match that instead.