No matter how much a person loves their career, if they have spent extra time working, they should be compensated for that overtime. Unfortunately, when it comes to overtime rates, many employees fall through the cracks and are not  getting paid properly for the hours they have put in. Each year it has been reported that about 82 million United States workers are paid incorrectly, especially when overtime pay is incorporated. If you are concerned that you are not being paid the proper overtime rate by your employer, it is crucial that you speak with an experienced Fair Labor Standards Act (FLSA) overtime lawyer.

Lore Law Firm is a team of skilled FLSA overtime rate lawyers with extensive experience helping clients pursue the overtime pay they are owed. For over 25 years, our legal team has worked hard to protect the rights of workers all across America and to ensure they are compensated fairly. We understand that the process of filing a claim against a person’s employer can be intimidating and overwhelming. That is why we are proud to provide the trusted and personalized service needed to help them through this challenging time. We look forward to helping you pursue the financial compensation you are owed as we build your claim. 

What is the FLSA Overtime Rate?

If you are a worker who frequently works overtime, it is crucial that you understand what the FLSA overtime rate is. The FLSA overtime rate is time and one-half the regular hourly rate that you are paid at your job. If an employee’s regular pay is not expressed as an hourly rate, their regular pay rate must be converted to an hourly equivalent. 

What are Examples of the FLSA Overtime Rate?

The Department of Labor provides the following examples that are based on a 40-hour workweek:

Hourly Rate 

This is considered the regular pay rate for an employee paid by the hour. If more than 40 hours are worked, at least one and one-half times the regular rate for each hour over 40 is due in overtime pay. An example of the FLSA overtime rate for regular hourly pay would be:

  • An employee paid $8.00 an hour works 44 hours in a workweek. The employee is entitled to at least one and one-half times $8.00, or $12.00, for each hour over 40. Pay for the week would be $320 for the first 40 hours, plus $48.00 for the four hours of overtime–a total of $368.00.

Piece Rate 

The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total weekly earnings by the total number of hours worked in that week. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the full piecework earnings. An example of this FLSA overtime rate would be:

  • An employee paid on a piecework basis works 45 hours in a week and earns $450. The regular rate of pay for that week is $450 divided by 45, or $10.00 an hour. In addition to the straight-time pay, the employee is also entitled to $5.00 (half the regular rate) for each hour over 40 — an additional $25 for the 5 overtime hours — for a total of $475.

Another way to compensate pieceworkers for overtime, if agreed to before the work is performed, is to pay one and one-half times the piece rate for each piece produced during the overtime hours. The piece rate must be the one actually paid during non-overtime hours and must be enough to yield at least the minimum wage per hour.

Salary Rate 

The regular rate for an employee paid a salary for a regular or specified number of hours a week is obtained by dividing the salary by the number of hours for which the salary is intended to compensate. If, under the employment agreement, a salary sufficient to meet the minimum wage requirement in every workweek is paid as straight time for whatever number of hours are worked in a workweek, the regular rate is obtained by dividing the salary by the number of hours worked each week. An example would be:

  • Suppose an employee’s hours of work vary each week and the agreement with the employer is that the employee will be paid $500 a week for whatever number of hours of work are required. Under this agreement, the regular rate will vary in overtime weeks. If the employee works 50 hours, the regular rate is $10 ($500 divided by 50 hours). In addition to the salary, half the regular rate, or $5 is due for each of the 10 overtime hours, for a total of $550 for the week. If the employee works 60 hours, the regular rate is $8.33 ($500 divided by 60 hours). In that case, an additional $4.17 is due for each of the 20 overtime hours, for a total of $583.33 for the week.

How to Calculate Overtime When a Salary is not Paid Weekly

If a salary is paid on other than a weekly basis, the weekly pay must be determined in order to compute the regular rate and overtime pay. If the salary is for a half month, it must be multiplied by 24 and the product divided by 52 weeks to get the weekly equivalent. A monthly salary should be multiplied by 12 and the product divided by 52.

In no case may the regular rate be less than the minimum wage required by FLSA. If you are unsure of what overtime rate your overtime pay would fall under, consult an experienced FLSA overtime rate lawyer. 

Contact a FLSA Overtime Rate Lawyer for Help

If you have worked overtime hours, it is crucial that you understand the FLSA overtime rate that your employer should be using to properly compensate you. If you have been compensated incorrectly for your overtime pay, contact an FLSA overtime rate lawyer for help. 

Lore Law Firm has over 25 years of experience helping employees defend their rights. We are proud to provide clients with the trusted and dedicated representation they deserve. To get started with a free and confidential review of your claim, fill out our contact form or call (713) 782-5291.