If you work Saturdays, Sundays, or holidays, you’re not legallyentitled to any special pay. Despite the lack of any legal requirement, holiday pay is commonly offered by most employers, to incentivize workers and keepthem happy. If you receive an hourly wage of $17 per hour, your time and a half overtime pay will equate to $25.50 per hour ($17 × 1.5).

How to Calculate Time and a Half

However, calculations look slightly different for salaried employees, workers who are paid hourly, and those who receive bonuses. Time and a half pay refers to the overtime pay that non-exempt employees are entitled to when they work for more than 40 hours a week, as mandated by the Fair Labor Standards Act (FLSA). It’s called time and a half pay because it’s equivalent to an employee’s hourly rate multiplied by 1.5 per hour of overtime. Employers must also understand that a workweek, according to the FLSA, is seven consecutive 24-hour periods.

What is holiday policy like in the US private sector?

• Ensure that supervisors understand overtime rules to avoid unauthorized overtime and payroll errors.
• In the second half, the duo of Luke Idlett and Deuce Bailey got the ball rolling to keep BG afloat.
• Whether it’s a summer rollout or a 2026 debut, this could redefine how we value overtime work.
• Human resources or payroll officers must first determine the period that the bonus covers and it should be accounted for according to that timeframe.

Work on federal holidays doesn’t automatically qualify an employee for time and a half pay, although some state and local jurisdictions may mandate it. Some employees are exempt from time and a half pay requirements. The FLSA lays out strict definitions of exempt and nonexempt workers. For example, a robust reporting suite lets you pull reports on daily labor spend across every team and location, letting you easily pinpoint where and when overtime hours occur.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks. Schedule, engage, and pay your staff in one system with Workforce.com. To know more about what makes an employee exempt or non-exempt, read this guide.

But the rest of the Red Raiders are a combined 1 for 14 from the floror. Karter Knox is carrying the Razorbacks with 11 points, including three 3-pointers. If Arkansas is going to get that from him, look out, because it would add a whole new dimension to a team that just keeps adding new layers as the season progresses. Arkansas led by 13 with under two minutes remaining, but Texas Tech closed the half on a 6-0 run highlighted by a Darrion Williams 3-pointer.

Properly managing overtime reduces your company’s liability by ensuring compliance with labor laws. Failure to pay overtime correctly can result in legal issues and fines. Accurate calculations and records help protect your business from these risks. Time and a half pay is used to compensate employees fairly for the extra hours they put in. Industries like retail, hospitality, and healthcare often rely on overtime to accommodate fluctuating workloads and staffing needs. Time and a half is overtime compensation paid to certain employees who work overtime hours, typically hours beyond 40 in a workweek.

It need not coincide with a calendar week, but must stand alone. Therefore, employers may not average an employee’s time worked over two or more workweeks when calculating overtime pay. They generally must pay the overtime earned in a particular workweek on the regular payday for the pay period in which wages were earned. The specifics of when double time pay applies depend on company policies, industry standards, federal and state laws and local labor laws.

On-call pay: How it works and when to compensate employees

Also, big man Derik Queen is likely to declare for the 2025 NBA Draft. Some of Maryland’s biggest questions should be answered sooner than later. The second weekend of the NCAA Tournament started with a bang on Thursday, as No. 3 seed Texas Tech emerged from the first overtime game of the Big Dance with a thrilling win over No. 10 seed Arkansas. The Red Raiders overcame a 16-point deficit behind a trio of 20-point performances from three starters. Gonzalez and his lawyers told LAist they hope the settlement leads the LAFD to change their policy and pay employees for all the work they do moving forward. Gonzalez and others who joined the lawsuit typically work 10 shifts per month, each lasting 24-hours.

LAist’s analysis of payroll data shows that the LAFD has paid significantly more overtime per employee in recent years than any other city department. While considering himself a time and a half overtime supporter of some of the bills in the tax cut package, Daniels said that cutting taxes on overtime pay was by and large the most effective way to help Alabama families. As of mid-March, the No Tax on Overtime bill’s pass date still hangs in the balance. The House’s approval was a big step, but the Senate’s version of the budget which passed on February 21 sidestepped tax cuts in favor of border security and energy priorities.

Exempt status does not apply to all employees in the above jobs and industries. Consult the FLSA website for details and guidelines regarding specific exempt employees. Some time and a half obligations only apply to employees who are categorized as non-exempt. Exempt employees are typically in salaried executive or administrative roles and are not entitled to overtime. Jim will get paid his regular salary of $615.38 plus an additional $161.49 for overtime for the week. After learning everything there is to know about time and half, it’s a good idea to know which documents you need to hold onto.

What is the overtime rate for $18 an hour?

• Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce.
• However, because nonexempt employees can be salaried, you must know how to calculate time and a half for both salaried and hourly employees.
• For Duke, Patrick Ngongba has three, and Khaman Maluach has two.
• Overtime and time and a half are similar but not always the same.
• However, employees in some companies may be required to work a sixth day out of the week, and so then overtime pay will only be paid after those hours are fulfilled.

Regularly audit employee classifications to comply with exempt vs. non-exempt rules. Moreover, a strong reputation for fair labor practices can enhance the company’s standing in the community and industry, which can be beneficial for business growth and networking. Make it easier for production and supply staff to communicate their availability and time off with our software.

Now, calculate the adjusted overtime pay rate by multiplying the actual hourly rate by 1.5. Next, multiply the adjusted hourly rate by 40, the regular number of working hours in the week, to determine their total non-overtime pay. The lawsuit claims that the fire department required employees for years to work unpaid overtime hours, totaling $14.3 million. In all, plaintiffs sought up to $28.6 million in overtime and damages. This daily overtime rule helps protect lower-wage workers from excessively long shifts without extra pay, ensuring they receive fair compensation for extended workdays. Nevada law follows both state and federal exemptions, meaning some workers are not entitled to overtime pay, even if they work more than 40 hours in a week.

Now that all the necessary calculations are complete, we can calculate Jim’s overtime pay. Employees must be exempt from earning overtime, usually determined by whether they’re salaried, earn over a certain amount every month, and perform specific duties. If you want to learn more about how Workforce.com can help you manage your workforce while staying compliant with the FLSA and state-specific laws, book a call today. Nondiscretionary bonuses are predetermined in nature, such as attendance bonuses or bonuses for quality of work. Even if the employer has the option not to award the bonuses, it doesn’t mean that these incentives are discretionary. It’s nondiscretionary in nature because the employees are aware of the bonus and have an expectation of how and when they will receive it.

In this case, overtime should be calculated based on their regular hourly wage only — with holiday pay left out of the equation. When calculating overtime pay for non-exempt employees , you need to understand how to do it for hourly and salaried workers. Hourly workers may take up the lion’s share of non-exempt workers entitled to time and a half pay , but it’s also vital to know how to calculate overtime pay for non-exempt salaried employees.

What is time and a half pay? Definition and purpose

Dividing this figure by the number of hours worked will yield the employee’s actual hourly rate for the week. Finally, add their weekly salary to their overtime pay to get their gross weekly pay. That’s why the United States has federal statutes that require employers to provide overtime pay in certain circumstances.

Ensure both exempt and nonexempt employees clearly understand your organization’s time and a half policy, particularly regarding eligibility and applicable situations (e.g., specific hours, days, or events). Understanding how to calculate overtime in everyday situations is essential for processing payroll accurately. Here are some practical examples for hourly and salaried employees to demonstrate how time and a half is determined. Finally, you calculate the employee’s overtime pay and add it to their non-overtime pay to get their total compensation for the week.

Tipped employees should be paid at least the full minimum wage ($12/hour) before tips, and their overtime rate is based on this full wage, not a reduced tipped wage. If you earn $18 per hour or more, you only qualify for overtime after 40 hours in a workweek, not for extra hours worked in a single day. Employees are eligible for overtime pay for any hours worked beyond 8 hours in a 24-hour period. This rule applies to any 24-hour period, not just a calendar day.