IS YOUR EMPLOYER CALCULATING OVERTIME CORRECTLY?
This article deals only with straight overtime calculations. There are other posts that respectively discuss the phenomenon of split-shift time, spread of hours, call in time and tipping. We also deal with regularly scheduled workweeks and paydays in different articles as well, but this is a basic description of how overtime works.
The first forty hours of any work week are considered regular time. Regular time is calculated at your regular hourly wage rate, and must be at least the mandatory minimum wage. Any hours actually worked after this are calculated at overtime. To illustrate this, lets assume you work forty hours in the first four days of your workweek, the fifth day is a paid holiday, and you work five hours each on the sixth and seventh day of the work week. Lets assume a round number for the hourly wage: $10.00/hr.
The first forty hours are paid at regular time. The 8 hour paid holiday on day five is paid at regular time rates, even though 40 hours of regular time have already been worked, because the holiday time was not time actually worked. The five hours each on days six and seven are paid at the overtime rate of time and a half, or $15/hr. if the regular hourly rate is $10.00. Keep in mind, however, that minimum wage is now in excess of $10/hr.