About the Regular Rate of Pay Calculator
This regular rate of pay calculator works out the hourly rate the Fair Labor Standards Act uses to price overtime. Under the FLSA, overtime is not simply 1.5 × your base hourly wage: it is 1.5 × your regular rate, which must include nondiscretionary bonuses, commissions, shift differentials and pay at every rate you worked that week. Getting this wrong is one of the most common wage-and-hour violations.
Enter the hours you worked at up to three hourly rates, any nondiscretionary bonus (and how many weeks it covers) and other includable pay. The calculator follows the Department of Labor method: total includable compensation for the workweek ÷ total hours worked = regular rate (a weighted average when you have several rates, per 29 CFR 778.115). Because straight-time pay already covers every hour, the extra overtime owed is a half-time premium: 0.5 × regular rate × hours over 40.
It is for hourly employees checking a paycheck, payroll and HR staff auditing overtime, and anyone paid a production, attendance or safety bonus. Discretionary bonuses, gifts, paid leave and expense reimbursements are excluded from the regular rate by law, so leave them out. State rules such as California daily overtime can require more.
With the default inputs, the regular rate of pay is $19.33. Change any value above to recalculate instantly.
How to use the regular rate of pay calculator
- 1Enter the hours you worked at each hourly rate this week.
- 2Add any nondiscretionary bonus and how many weeks it covers.
- 3Add commissions, shift differentials or other includable pay.
- 4Read your regular rate, overtime hours and the half-time premium owed.
- 5Compare the total with your paycheck to spot underpaid overtime.
Formula and method
The FLSA regular rate is all remuneration for employment in the workweek, minus the statutory exclusions, divided by all hours actually worked. Straight-time pay at every rate, nondiscretionary bonuses, commissions and shift differentials count. A bonus earned over several weeks is allocated back to those weeks; this calculator spreads it evenly.
Because every hour (including overtime hours) has already been paid at straight time, the additional overtime due is half the regular rate for each hour over 40. Total weekly pay is the included compensation plus that premium, which is equivalent to paying 1.5 × the regular rate for each overtime hour.
- Regular rate
- Weighted hourly rate including bonuses and other pay
- Σ rate × hours
- Straight-time earnings at all hourly rates
- weeks
- Number of workweeks a bonus was earned over
- 40
- FLSA weekly overtime threshold
Worked examples
DOL example: $10/hour, 43 hours, $50 bonus
Total compensation is $430 + $50 = $480. Divided by 43 hours, the regular rate is $11.16. The half-time premium is $5.58 × 3 overtime hours = $16.74, so the week pays $496.74 — the same figures as DOL Fact Sheet #56C.
Two jobs: 30 hours at $18 and 15 hours at $22
Straight-time earnings are $540 + $330 = $870 over 45 hours, a blended regular rate of $19.33. Five overtime hours add a premium of 0.5 × $19.33 × 5 = $48.33, for $918.33 in total.
$16/hour, 50 hours, $200 bonus covering two weeks
Half the bonus ($100) belongs to this week, so the regular rate is ($800 + $100) ÷ 50 = $18. The premium is $9 × 10 hours = $90 and total pay $990 — $10 more than if overtime ignored the bonus.
Frequently asked questions
What is the regular rate of pay under the FLSA?+
It is the hourly rate actually paid for the normal, non-overtime workweek: all compensation for employment in the week, minus specific statutory exclusions, divided by total hours worked. Overtime must be paid at no less than 1.5 times this rate.
Do bonuses count toward overtime?+
Nondiscretionary bonuses do — those promised in advance or tied to production, quality, attendance or safety. Purely discretionary bonuses, where the employer decides both whether and how much to pay at or near the end of the period, and holiday gifts are excluded.
How is overtime calculated with two different pay rates?+
By default the regular rate is the weighted average: total straight-time earnings at all rates divided by total hours. The overtime premium is half that average for each hour over 40. If agreed in advance, overtime may instead be paid at 1.5 × the rate for the work performed during the overtime hours.
What payments are excluded from the regular rate?+
Section 7(e) excludes gifts, pay for vacation, holidays and sick days, expense reimbursements, discretionary bonuses, benefit plan contributions, profit-sharing, certain premium pay already at 1.5× or more, and qualifying stock option gains.
How do I handle a quarterly or monthly bonus?+
Allocate the bonus to the workweeks in which it was earned, recompute the regular rate for each week that had overtime and pay the extra half-time on the added amount. If it cannot be identified with particular weeks, it is spread equally across the period.
Does this apply to salaried employees?+
It applies to nonexempt salaried employees, whose salary is converted to an hourly regular rate based on the hours it is meant to cover. Exempt employees under the white-collar exemptions are not entitled to FLSA overtime at all.
Results are general estimates and not legal advice. Laws vary by jurisdiction — consult a qualified attorney.