The U.S. Department of Labor's Wage and Hour Division has unveiled a new elaws advisor — the FLSA Overtime Calculator — to help employers and workers understand and calculate overtime pay.
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Under the Fair Labor Standards Act (FLSA), covered employees who are not exempt must be paid overtime at rates of one and one-half times their regular rates of pay for all hours worked over 40 in a single workweek. The new FLSA Overtime Calculator advisor is a practical and helpful compliance assistance tool that provides examples of how FLSA overtime should be completed under some, but not all, scenarios. The calculator will help improve compliance with this important worker protection.
The Overtime Calculator advisor computes overtime pay due in a sample pay period based on information submitted by the user, such as the primary method of pay, additional compensation paid in the form of bonuses, commissions and shift differentials, and information relating to the hours employees worked. The calculator then totals the hours worked during the sample pay period and, based on the user's input, calculates the overtime pay due for any overtime hours worked. Because it is an educational tool, the advisor also provides links to definitions and detailed information on overtime pay requirements.
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