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Calculating Overtime Entitlements Under FLSA

Applicability

This Section applies to NONEXEMPT employees only.

Payment Under FLSA

1 x the FLSA straight time rate for all overtime hours, plus 1/2 x the FLSA regular rate x all overtime hours.

Factors of "Regular Rate" Defined

The "regular rate" is an average derived by dividing total remuneration (100 percent of all the employee's payments, including straight time for overtime) by 100 percent of the scheduled and unscheduled hours worked (total hours worked).

Calculating Total Remuneration

"Total remuneration" is the sum of all monies paid to, or on behalf of, the employee. This includes:

  • Basic pay including locality-comparability payment under 5 U.S.C. 5304; special rate under 5 U.S.C. 5305; and any law enforcement officer pay adjustment under Section 302, 403, or 404 of the FEPCA;
  • Pay for paid absence, including all paid leave, periods of continuation of pay, credit hours under flexible work schedules when used, compensatory time used, and pay for a holiday when no work is performed;
  • Annual premium pay for regularly scheduled standby duty, AUO, and availability hours;
  • Payment for a retention allowance under 5 U.S.C. 5754;
  • Payment for overtime hours at the straight time rate;
  • Additional pay for working a holiday;
  • Night and Sunday differential;
  • COLA and post differential;
  • Staffing differential; and
  • Environmental differential or hazard pay.

Excluded payments. Payments made to the individual but excluded from calculation of total remuneration include recruitment and relocation bonuses, travel and per diem payments, clothing and uniform allowances, a remote worksite allowance, cash incentive awards, and compensatory time earned.

Calculating Straight Time Rate

The "straight time rate" is the answer obtained when the total of an employee's:

  • Basic rate of pay, including locality-based comparability payment, special rate, special law enforcement officer adjusted rate of pay under sections 302, 403, or 404, of FEPCA; and
  • Additional pay at the basic rate for work on a holiday; plus
  • Annual premium pay for standby, AUO, or availability duty (if any) but otherwise excluding any premiums or differentials which are paid at less than the basic rate

are divided by the hours the total represents. The straight time rate, once obtained, is used to price all overtime hours at the straight time rate. The result is factored into the computation of total remuneration.

Computing Total Hours Worked

"Total hours worked" includes all hours in the employee's basic work week; e.g. basic hours; irregular and regular overtime hours, including call-back overtime; actual hours of standby and administratively uncontrollable overtime; and all hours of paid absence, including all paid leave, hours of compensatory time used, continuation of pay hours, credit hours used, and holidays when no work is performed.

Computing Regular Rate

The "regular rate" is an average hourly rate obtained by dividing "total remuneration" by "total hours worked".

Computing Overtime Hours

Total overtime hours under FLSA are computed by:

  • Subtracting overtime hours creditable for hours in excess of 8 from the total hours of work for the pay period, e.g., a week;
  • Subtracting the applicable overtime standard, i.e., 40 hours under FLSA, from the result in step a; and
  • Adding the daily overtime hours to the result of step b; and
  • If the result in b. is a negative number, it must be set to zero.

Computing the Overtime Entitlement

When all factors of the computation have been determined, the employee is paid:

  • 1 x all overtime hours at the straight time rate, and
  • 1 x all overtime hours at 1/2 the regular rate.

Regular Rate and the Statutory Minimum Wage

The regular rate of pay at which the employee is employed must not be less than the statutory minimum wage. If the employee's hourly regular rate of pay has to be increased to comply with the minimum wage rate, then the employee is entitled to this additional amount for each hour worked during the week.

Example 1: More than 40 hours in a week including suffered and permitted work.

A GS-7, step 1 employee ($10.07 per hour) works an 8-hour day, Wednesday thru Sunday from 10 p.m. to 6 a.m. In addition to the basic workweek, the employee works 2 hours after completing the regular tour of duty on Saturday, 2 hours of suffered or permitted work on Wednesday and 10 hours (8 a.m. to 6 p.m.) on Monday -- a total of 54 hours of work for the week. In addition, the employee receives a 25% COLA.

Compute overtime hours --the employee is entitled to 14 hours of overtime pay under the FLSA, computed as follows:

  • Daily -- 4 hours in excess of 8 hours per day (2 hours on Saturday and 2 hours on Monday), plus
  • Weekly -- 10 hours (50 hours -- 8 hours each day Wednesday thru Monday, plus 2 hours of suffered or permitted work on Wednesday, minus the 40-hour overtime standard) in excess of 40 hours in a week (excluding the 4 hours already credited in a. above).

Overtime hours total 14.

Compute total compensation -

  • Basic pay for 40 hours ($10.07 x 40) $402.80
  • COLA (25% of $402.80) $100.70
  • Night differential (40 hours. x 1.01) $ 40.40
  • Sunday pay (8 hours. x $2.52) $ 20.16
  • Straight time for 14 hours of overtime $140.98
  • ($402.80/40 = $10.07) $705.04

Compute hourly regular rate -

  • $705.04/54 (total hours worked) $ 13.06

Determine additional pay due -

  • 1 x $10.07 (straight time rate x 14) $140.98
  • 1/2 x $13.06 (regular rate) x 14 = 91.42

Total: $232.40

Pay the employee -

  • Basic pay = $402.80
  • COLA = $100.70
  • Night differential = $40.40
  • Sunday pay = $20.16
  • FLSA overtime pay = $232.40

Total: $796.46

Example 2: More than 40 hours in the week, a holiday worked, and AUO.

A GS-7, step 1 employee ($10.07 per hour) works an 8-hour day, Monday thru Friday from 8 a.m. to 4:30 p.m., Monday is a holiday so the employee receives holiday premium pay and receives premium pay on an annual basis for AUO (25%) of basic pay), works a total 12 hours of AUO work, and works 12 regularly scheduled hours on Saturday from noon to midnight in addition to the basic work schedule -- a total of 64 hours of work.

Compute overtime hours - the employee is entitled to 24 hours of overtime pay under the FLSA, computed as follows:

  • Daily -- 4 hours in excess of 8 hours per day (4 hours on Saturday), plus AUO hours are not counted toward hours in excess of 8 in a day since they are compensated by annual premium pay.
  • Weekly -- 20 hours (60 hours--8 hours Monday thru Saturday plus 12 AUO hours, minus the 40-hour overtime standard) in excess of the weekly overtime standard.

Overtime hours total 24.

Compute total compensation -

  • Basic pay for 40 hours ($10.07 x 40) $402.80
  • AUO (25% of $402.80) $100.70
  • Holiday worked ($10.07 x 8) $80.56
  • Night differential (6 hours x $1.01) $6.06
  • Straight time for 12 hours of overtime $134.76
  • ($584.06/52 = $11.23) $724.88

Compute hourly regular rate -

  • $724.88 / 64 hours (total hours. worked) $11.33

Determine additional pay due -

  • 1 x $11.23 x 12 (from 2e.) $134.76
  • b. 2 x $11.33 (hourly regular rate) x 24 $135.96

Total: $270.72

Pay the employee -

  • Basic pay $402.80
  • AUO $100.70
  • Holiday worked $80.56
  • Night differential $6.06
  • FLSA overtime $270.72

Total:$860.84

Example 3: Less than 40 hours in a week, LWOP, and travel.

A GS-9, step 3 employee ($13.14 per hour), scheduled to work Monday thru Friday, 7:30 a.m. to 4 p.m., works Monday thru Wednesday, works an additional 4 hours on Wednesday, is on LWOP Thursday and Friday, and performs official travel on Saturday between 8 a.m. and 3 p. m. --- a total of 35 hours of work.

Compute overtime hours - the employee is entitled to 4 hours overtime pay under FLSA, computed as follows:

  • Daily - 4 hours in excess of 8 hours per day (4 hours on Wednesday)
  • Weekly - no entitlement since the employee did not exceed the 40-hour weekly standard

Overtime hours total 4.

Compute total compensation -

  • Basic pay for 31 hours ($13.14 x 31) $407.34
  • Straight time pay for 4 hours overtime $52.56
    ($13.14 x 4 hours) $459.90

Compute hourly regular rate -

  • $459.90 / 35 hours (total hours worked) $13.14

Determine additional pay due -

  • 1 x $13.14 x 4 (from 2b.) $52.56
  • b. 2 x $13.14 (regular hourly rate) x 3 $78.84

Pay the employee -

  • Basic pay $407.34
  • FLSA overtime pay $78.84

Total: $486.18

Example 4: Compressed work schedule.

A GS-7, step 1 employee ($10.07 per hour) on a "5-4-9" compressed work schedule (first week--9 hours Sunday thru Tuesday and 8 hours on Wednesday; second week--9 hours Sunday thru Thursday. The employee works from 2 p.m. to 11:30 p.m. on the 9-hour days and from 2 p.m. to 10:30 p.m. on the 8-hour day). The employee is scheduled to work an additional 2 hours Monday and Tuesday in the first week. The second Monday is a holiday and the employee works that day -- a total of 84 hours worked in the pay period, In addition, the employee receives a 10% post differential.

Compute overtime hours - the employee is entitled to 4 hours of overtime pay under the FLSA, computed as follows:

  • Daily -- 4 hours in excess of the 9 hours per day (2 hours on Monday and Tuesday of the first week)
  • Weekly – none
  • Overtime hours total 4.

Compute total compensation

  • Basic pay for 80 hours ($10.07 x 80) $805.60
  • Post differential (10% of $805.60) $80.56
  • Holiday worked ($10.07 x 9) $90.63
  • Night differential ($1.06 x 52.5) $56.18
  • Sunday premium pay ($2.52 x 18) $45.36
  • Straight time rate for 4 hours $44.80
    ($896.23/ 80 = $11.20) $1123.13

Compute hourly regular rate

$1123.13 / 84 (total hours worked) = $13.37

Determine additional pay due

  • 1 x $11.20 (straight time rate) x 4 $44.80
  • 2 x $13.37 (hourly regular rate) X 4 $26.76
    $71.56

Pay the employee

  • Basic pay $805.60
  • Post differential $80.56
  • Holiday worked $90.63
  • Night differential $56.18
  • Sunday premium pay $45.36
  • FLSA overtime pay $71.56
    $1149.89

Example 5: More than 40 hours in the week and standby.

A GS-7, step 1, employee (10.07 per hour) works Monday thru Friday, 8 a.m. to 4:30 p.m. The employee is scheduled for 8 hours standby on Sunday and Saturday; in addition the employee works an additional 4 hours unscheduled overtime on Wednesday -- a total of 60 hours of work. Standby is paid at the rate of 25% of basic pay up to the minimum rate of GS-10, step 1.

Compute overtime hours- the employee is entitled to 20 hours of overtime pay under the FLSA, computed as follows:

  • Daily- 4 hours in excess of the 8 hours per day (4 hours on Wednesday), plus
  • Weekly- 16 hours in excess of 40 hours in a week (56 hours--8 hours each Sunday thru Saturday, minus the 40- hour overtime standard) excluding the 4 hours already credited above.

Standby hours are not counted towards hours in excess of 8 since they are paid at an annual premium pay rate.

Overtime hours total 20.

Compute total compensation -

  • Basic pay for 40 hours ($10.07 x 40) $402.80
  • Standby pay (25% of GS-7, step 1) $100.70
  • Straight time for 4 hours of overtime $35.96
    ($503.50/56 = $8.99) $539.46

Compute regular rate -

  • $539.46/60 = $8.99

Determine additional pay due -

  • 1 x $8.99 x 4 $35.96
    b. 2 x $8.99 (regular rate) x 4 $17.98
    $53.94

Pay the employee -

  • Basic pay $402.80
  • Standby pay $100.70
  • FLSA overtime pay $53.94
    $557.44

Example 6: Regularly scheduled overtime and dive pay.

A WG-8, step 5, employee receives basic pay at $14.73 an hour for regular duties, Monday through Friday, 8:30 to 5 p.m. The Thursday she performs diving duties, she works 12 hours and must be paid the diving rate for all hours of duty including any overtime hours. The diving rate is equal to 175% of the rate for WG-10, step 2, on the nonsupervisory wage grade schedule for the locality in which the employee is employed. If the basic rate for WG-10, step 2, is $13.98 then the diving rate is 1.75 x $13.98 or $24.47. In addition to her basic 40 hour week, the employee works 32 hours of regularly scheduled nondive overtime between the hours of 3 p.m. and midnight (no night differential is payable since a majority of the employee's nonovertime hours were worked outside the parameters for night differential).

Compute overtime hours -- the employee is entitled to 36 hours of overtime pay under FLSA, computed as follows:

  • Daily -- 8 hours in excess of the daily standard on Monday, Tuesday, Wednesday, and Friday, and 4 hours on Thursday.
  • Weekly -- 0.
  • Overtime hours total 36.

Compute total compensation -

  • Basic pay for 32 hours ($14.73 x 32) $471.36
  • Basic pay for 8 dive hours ($24.47 x 8) $195.76
  • Straight time rate for 32 overtime hours $471.36
    ($14.73 x 32)
  • Straight time rate for 4 dive overtime $97.88
    hours ($24.47 x 4) $1236.36

Compute hourly regular rate -

  • $1236.36/76 $16.27

Determine additional pay due -

  • .5 x $16.27 x 36 overtime hours $292.86

Pay the employee -

  • $1236.36 plus $292.86 $1529.22

NOTE: The straight time rate was figured separately for nondive and dive overtime hours because the dive rate is applicable for all hours of a shift, including overtime.