← FLSA regular-rate overtime audit
Overtime is not simply 1.5 times the hourly wage. It is based on the regular rate, which includes bonuses that were promised or tied to production, shift differentials and commissions earned in the week. Pay overtime on the base wage alone and every overtime hour is short by a fraction of those extras. It rarely shows on a pay stub, which is why it turns up in audits and wage claims. The payroll export usually already has the numbers.
Regular rate. Total includable pay for the workweek divided by total hours worked in that week.
Premium owed. For an employee already paid straight time for every hour, half the regular rate for each hour over 40.
Left out. Discretionary bonuses, gifts, expense reimbursements and the other categories the statute excludes. Enter them in the excluded column and they never move the rate.
Lookback. Two years, three if willful, with possible liquidated damages. Editable on the page.
Five rows from the audit's example. All employees are invented. Overtime premium paid is the base-rate figure unless noted.
| Employee | What happened | Back pay |
|---|---|---|
| Ana Reyes, Oct 5 | 50h at $15 plus $100 bonus: regular rate $17.00, owed 0.5 x 17 x 10 = $85.00, paid $75.00 | $10.00 |
| Ben Okoye, Oct 5 | 45h at $12 plus $90 differential, $25 excluded: regular rate $14.00, owed $35.00, paid $30.00 | $5.00 |
| Cy Dahl, Oct 5 | Exactly 40h with a $50 bonus: no hours over 40 | $0.00 |
| Dee Park, Oct 5 | 48h at $18 plus $60 bonus: regular rate $19.25, owed $77.00, paid $72.00 as entered | $5.00 |
| Ana Reyes, Oct 12 | 44h at $15 plus $88 bonus: regular rate $17.00, owed $34.00, paid $30.00 | $4.00 |
Total back pay: $24.00 over two distinct weeks, an average of $12.00 a week. Over a two-year lookback that is a projected $1,248.00, and $1,872.00 over three.
The regular rate is the hourly rate an employee is actually paid for a workweek: all remuneration for employment, including nondiscretionary bonuses, shift differentials and commissions, divided by the total hours worked in that week. Overtime for hours over 40 is based on this rate, not on the base hourly wage alone.
Add the bonus to the week's straight-time pay and divide by total hours to get the regular rate. If the employee is paid by the hour and already received straight time for every hour, the extra owed is half the regular rate for each hour over 40. Example: 50 hours at 15 dollars plus a 100 dollar bonus gives a regular rate of 17.00 and an overtime premium of 0.5 x 17.00 x 10 = 85.00.
Some payments are excluded by the statute, such as truly discretionary bonuses, gifts, reimbursed expenses, premium pay for hours over the daily or weekly standard, and certain benefit-plan contributions. Whether a bonus is discretionary depends on whether the employer fixed the amount and the decision at its sole discretion, and a promised or announced bonus is generally not. Enter excluded amounts in the excluded column and they will not change the rate.
The FLSA limitation period is two years, extended to three for a willful violation, counted from each paycheck. A court may also award an equal amount in liquidated damages unless the employer shows good faith. Some states allow longer periods. The lookback years and a damages multiplier are editable on this page, and the exposure figure is a projection, not a finding.
No. Everything is calculated in your browser, nothing is sent to a server, and there are no accounts. Employee names stay on your device.