1. What Is Regular Rate Of Pay?

The regular rate of pay is a calculation required by the Fair Labor Standards Act (FLSA) to determine the proper overtime pay rate for non-exempt employees. It includes all remuneration for employment except certain exclusions.

2. How To Calculate Regular Rate

The regular rate is calculated using the formula:

Where:

• Total Non-Overtime Pay — Includes all straight-time earnings, bonuses, commissions, and other forms of compensation
• Non-Overtime Hours — Total hours worked up to 40 hours per workweek

FLSA Regular Rate Including Bonuses: The regular rate must include non-discretionary bonuses, which are added to total pay before dividing by hours worked.

3. Importance Of Regular Rate Calculation

Details: Accurate regular rate calculation is essential for determining correct overtime pay rates, ensuring FLSA compliance, and avoiding wage and hour violations that can result in significant penalties.

4. Using The Calculator

Tips: Enter total non-overtime pay in dollars and non-overtime hours in hours. Ensure all values are positive numbers. The calculator will compute the regular rate in dollars per hour.

5. Frequently Asked Questions (FAQ)

Q1: What Is Included In Total Non-Overtime Pay?
A: Includes hourly wages, salaries, non-discretionary bonuses, commissions, and certain other forms of compensation for hours up to 40 per workweek.

Q2: How Does This Affect Overtime Pay?
A: Overtime pay must be at least 1.5 times the regular rate for all hours worked over 40 in a workweek.

Q3: Are Bonuses Included In Regular Rate?
A: Non-discretionary bonuses must be included, while discretionary bonuses are generally excluded from the regular rate calculation.

Q4: What About Multiple Pay Rates?
A: For employees with multiple pay rates, the regular rate is the weighted average of all rates earned during the workweek.

Q5: When Should Regular Rate Be Calculated?
A: Regular rate should be calculated each workweek based on that week's total compensation and hours worked.