Date printed: 12-10-2018   Last updated: 11-09-2017

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Applies to versions: 2.5, 3.0



Understanding Workweeks, Workweek Groups, FLSA Base Rate for Overtime



What is a workweek?

In most situations, a workweek is a 168 hour period consisting of seven 24-hour days. These days and the entire week are important because they are used for the calculation of overtime, based on the Overtime Policy in place for the workweek.  In the United States, the workweek is leagaly defined by 29 CFR 778.105.

Are workweeks the same as calendar weeks?

Most businesses and organizations will have workweeks and workdays aligned with calendar days, but this is not required. When employees follow workweeks that start in the middle of the calendar day, most reports and exports will follow the workweeks and workdays, rather than calendar days.

What is the workweek duration? Isn't a workweek always a week long?

One calendar week is the standard workweek duration.  However, if the workweek start-day changes, overlapping workweeks are generated, creating a short workweek with special calculation requirements. Workweeks also vary in some situations, with certain kinds of workers, and in some countries outside the USA. For example, certain employees in the medical industry can have 14 day workweeks per US Federal Labor Law 29 CFR 778.601, and certain employees in fire protection work can have 7, 14, 21 or 28 day workweeks per FLSA Section 207 7(k).

What is a Workweek Group?

Workweek Groups are a configuration option in TimeIPS that provide a way for a group of employees to follow specific dates and rules for workweeks and overtime calculations. Specifically:

Can workweeks and workweek groups be changed at any time?

While it is technically possible to change workweeks (and/or workweek groups) it should normally be done as infrequently as possible. The reason is that the labor law treatment for employers who change workweeks is complex and always favors the employee.

For example, an employee with a workweek that is changed will always have "overlapping" workweeks. This means that TimeIPS must consider both the old workweek, and the new one when figuring overtime. By labor law, time worked in the overlapping days must be calculated as if it belonged in each of the two weeks, then allocated into the week that would result in the maximum amount of pay for the employee. This can result in unexpected overtime and pay and can make reports difficult to read on the overlapping days.

Please carefully review US Federal Labor Law, 29 CFR Subpart B 778, as well as any state-specific rules that may cover your business/organization and employees. For any questions, please seek advice from an attorney specializing in labor law in your state and industry.

What is a workweek's "FLSA Regular Rate," how is it figured and how is it used for overtime?

Each workweek has an an hourly equivalent "FLSA Regular Rate" figured for each employee, as required by Federal Labor Law (Title 29 Part 778.200, etc.).  In normal calculations, overtime adds 1/2 of this Regular Rate to each hour worked during overtime.  To  figure the regular rate, the total pay the employee receives for all work done is divided by the total hours of work. i.e.:

Regular Rate = Total Pay For Hours Worked / Total Hours Worked

All hours considered "Overtime" then have 1/2 the "Regular Rate" added.

 

Example 1: Mixed pay rates and overtime.

In a workweek, an employee works:

Calculate the FLSA Regular Rate:
(25 x $10) + (25 x $20) = the total pay for time worked of $750. $750 divided by the 50 total hours worked = The FLSA Regular Rate of $15/hour.

Add in Overtime Pay:
The 10 hours of overtime were already $20/hour.  These hours will have 1/2 the Regular Rate added, and will be paid at $27.50/hour. (10 x $7.50) + $750 = the total pay of $825.

 

Example 2: Bonus/Piecework/Commission pay and overtime.

In a workweek, an employee works:

Calculate the FLSA Regular Rate:
45 x $10 = $450 for total pay for time worked. That $450 + $450 for piecework = $900. $900 divided by the 45 total hours worked = The FLSA Regular Rate of $20/hour.

Add in Overtime Pay:
The 5 hours of overtime were at $10/hour.  These hours will have 1/2 the Regular Rate added, and will be paid at $20/hour.  So (5 x $10) + $900 = the total pay of $950.

 

Example 3: Benefit time and overtime.

In a workweek, an employee works:

Calculate the FLSA Regular Rate:
45 x $10 = $450 for total pay for time worked. $450 divided by the 45 total hours worked = The FLSA Regular Rate of $10/hour.

Add in Overtime Pay:
The 5 hours of overtime were at $10/hour. These hours will have 1/2 the Regular Rate added, and will be paid at $15/hour.  So (5 x $5) + $450 = $475.

Add in Vacation Pay:
The 8 hours of vacation pay were at $10/hour. (8 x $10) + $475 = the total pay of $555.

 

Example 4: Benefit time that "counts toward overtime" and overtime.

In a workweek, an employee works:

Calculate the FLSA Regular Rate:
45 x $10 = $450 for total pay for time worked. $450 divided by the 45 total hours worked = The FLSA Regular Rate of $10/hour.

Note: Because the 8 hours of sick time "count toward overtime", the 40 hours in a week to reach overtime are reduced to 32 hours. The sick hours are still excluded from the Regular Rate calculation.

Add in Sick Pay:
The 8 hours of sick pay were at $10/hour. (8 x $10) + $450 = $530.

Add in Overtime Pay:
5 hours OT (worked passed 40hours) + 8 hours of sick time that "counts toward overtime" = 13 total OT hours. The 13 hours of overtime were at $10/hour. These hours will have 1/2 the Regular Rate added, and will be paid at $15/hour. So (13 x $5) + $530 = the total pay of $595.

 

Example 5: Salary non-exempt and overtime.

In a workweek, an employee works:

Calculate the FLSA Regular Rate:
$1000 for total pay for time worked divided by the 50 total hours worked = The FLSA Regular Rate of $20/hour.

Add in Overtime Pay:
For each of the 10 hours of overtime, additional pay of 1/2 the Regular Rate will be paid. So (10 x $10) + $1000 = the total pay of $1100.

 

Example 6: Salary non-exempt (set hours/week) and overtime.

In a workweek, an employee works:

Calculate the FLSA Regular Rate:
Salary of $1000/40 hours = $25/hour. 50 hours were worked so the extra 10 hours x the $25 base rate = $250. $1000 + $250 = $1250 for total pay for time worked. $1250 divided by the 50 total hours worked = The FLSA Regular Rate of $25/hour.

Add in Overtime Pay:
For each of the 10 hours of overtime, additional pay of 1/2 the Regular Rate will be paid. So 10($25 + $12.5) = $375. $375 + $1000 = the total pay of $1375.

 

Example 7: Salary non-exempt (all-hours), commission and overtime.

In a workweek, an employee works:

Calculate the FLSA Regular Rate:
Salary of $500 + $500 for commission = $1000 for total pay for time worked. $1000 divided by the 50 total hours worked = The FLSA Regular Rate of $20/hour.

Add in Overtime Pay:
For each of the 10 hours of overtime, additional pay of 1/2 the Regular Rate will be paid.  So (10 x $10) + $1000 = the total pay of $1100.

 

Example 8: Salary non-exempt (all-hours), benefit time, overtime

In a workweek, an employee works:

Calculate the FLSA Regular Rate:
The $1000 salary covers all time, worked and benefit. Under FLSA Title 29 778.200, pay for benefit hours such as holiday time are not included in the FLSA Regular Rate calculation. $1000 x 50/58 hours = $862.07 is pay for time worked. $1000 x 8/58 hours = $137.93 for holiday pay. $862.07 divided by the 50 total hours worked = The FLSA Regular Rate of $17.2414/hour.

Add in Overtime Pay:
For each of the 10 hours of overtime, additional pay of 1/2 the FLSA Regular Rate will be paid. So (10 x $8.6207) + $1000 = the total pay of $1086.21

 

Example 9: Salary exempt (set hours/week). Long week.

In a workweek, an employee works:

No FLSA Regular Rate:
Salary of $1000/40 hours = $25/hour. 50 hours were worked x the $25 base rate = $1250 for total pay for time worked. The FLSA regular rate is $0/hour because exempt employees never get overtime and do not need a regular rate to be calculated. So, total pay is $1250.

 

Example 10: Salary exempt (set hours/year). Short week.

In a workweek, an employee works:

No FLSA Regular Rate:
Salary of $52,000/year divided by 52 weeks = $1000/week. $1000 for total pay for time worked divided by the 40 set hours = $25/hour. 1 x $25 = $25 for total pay for time worked. The FLSA regular rate is $0/hour because exempt employees never get overtime and do not need a regular rate to be calculated. So, total pay is $25.

 

Example 11: Salary exempt (all hours worked). Short week.

In a workweek, an employee works:

No FLSA Regular Rate:
Salary is $1000.  Because salary covers all hours, the final pay is still $1000 even though the employee only worked a single hour in the entire week. FLSA regular rate is $0 for exempt employees.

 

Example 12: Salary exempt (all hours worked). No work.

In a workweek, an employee works:

Salary is only paid for weeks with some work or paid benefit time. Pay for this week is $0.

 

Example 13: Salary exempt (all hours worked). No work. Non-paid benefits.

In a workweek, an employee works:

Unpaid benefit time, such as FMLA, will not trigger the salary to be paid. Pay for this week is $0.

 

Example 14: Salary exempt (all hours worked). No work. Benefits.

In a workweek, an employee works:

Salary for all hours worked will be paid in full for any week with worked time or paid benefit time.  Pay for this week is $1000.

 

Example 15: Salary exempt (all hours worked). No work. Some Paid, some non-paid benefits.

In a workweek, an employee works:

Unpaid benefit time, such as FMLA, will not trigger the salary to be paid, but any paid time, including a holiday will. Pay for this week is $1000.

 

Example 16: Salary exempt (all hours worked). Some work, some Employer-Elected benefit time.

In a workweek, an employee works:

Salary of $1000/40 hours = $25/hour.

The 10 hours of employee-elected unpaid benefit time is not paid. The worked hours, vacation and empolyer-elected lack-of-work benefit all count as time for salary calculation. So, the employee is paid for 30 hours. 30 x $25 = the total pay of $750.

 

Example 17: Salary Non-exempt, Minimum Wage with Commission

In a workweek, an employee works:

Calculate the FLSA Regular Rate:
$600 for total pay for time worked divided by the 60 total hours worked = $10/hour. However, this is below minimum wage of $15, so the FLSA Regular Rate is $15/hour and is used to calculate that weeks pay. 60 hours x $15 = $900.

Add in Overtime Pay:
In addition, as a non-exempt employee, overtime will be paid for hours over 40. For each of the 20 hours of overtime, additional pay of 1/2 the Regular Rate will be paid. So 20 x $7.50 = $150. $150 + $900 = the total pay of $1050.

 

Example 18: Hourly for part of a week, switching to Salary Non-exempt (all hours worked)

In a workweek, an employee works:

While hourly:
20 x $10 = $200 for time worked. 2 x $10 = $20 for vacation time.

While salary:
The "all hours worked" option means the salary amount is pro-rated by the number of hours in the week while salary. $500 for all hours worked divided by the 55 total hours worked = $9.091/hour base rate. 33 hours x $9.09 = $300. Salary pay for hours of work is 25/33 x $300 = $227.27 and holiday pay is 8/33 x $300 = $72.73.

Calculate the FLSA Regular Rate:
$200 for hourly worked time + $227.27 for salary hours worked = $427.27.  $427.27 divided by the 45 total hours worked = The FLSA Regular Rate of $9.4949/hour.

Add in Overtime Pay:
The 5 hours of overtime will have 1/2 the Regular Rate added. So (5 x $4.7474) + ($200 hourly worked + $20 vacation time +$300 salary) = the total pay of $543.74.

 

Example 19: Salary non-exempt (all hours) switches to Salary non-exempt (set hours/week)

In a workweek, an employee works:

During "all hours":
$1000 for all hours worked divided by the 45 total hours worked = $22.2222/hour base rate. 20 hours x $22.22 = $444.44 for time worked during the "all hours worked" period.

During "set hours/week":
Salary of $1000/50 set hours = $20/hour base rate. 25 hours were worked x the $20 base rate = $500.

Calculate the FLSA Regular Rate:
$444.44 for the "all hours" period + $500 for the "set hours" period = $944.44 for total pay for time worked. $944.44 divided by the 45 total hours worked = The FLSA Regular Rate of $20.99/hour.

Add in Overtime Pay:
For the 5 hours of overtime, additional pay of 1/2 the Regular Rate will be paid. So 5 x $10.49 = $52.47. $52.47 + $944.44 = the total pay of $996.91.

 

Example 20:  Salary non-exempt (all hours). Raise.

In a workweek, an employee works:

Pre-raise:
$1000 for all hours worked divided by the 45 total hours worked = $22.2222/hour base rate. 25 hours x $22.22 = $555.56.

Post-raise:
$1200 for all hours worked divided by the 45 total hours worked = $26.67/hour base rate. 20 hours x $26.67 = $533.33.

Calculate the FLSA Regular Rate:
$555.56 for time worked before the raise + $533.33 for time worked after the raise = $1088.89 total pay for time worked. $1088.89 divided by the 45 total hours worked = The FLSA Regular Rate of $24.20/hour.

Add in Overtime Pay:
For the 5 hours of overtime, additional pay of 1/2 the Regular Rate will be paid. So 5 x $12.10 = $60.49. $60.49 + $1088.89 = the total pay of $1149.38.

 

Example 21:  Hourly, change in workweek, overtime.

An employee moves from Sunday 12AM -> Sunday 12AM workweeks to Wednesday 12AM -> Wednesday 12AM workweeks.  This creates overlapping weeks. The week that time is assigned to is the one which results in the most pay. 

The employee earns $10/hour. During the range of Sunday 12AM to Wednesday 12AM (10 days) the employee works:

If the first week is given the overlapping time: In the first week (Sun->Sun) the employee has 50 hours in the week, receiving 10 hours of overtime.  In the second week, there is 18 hours standard pay.  ($10 x 40) + ($15 x 10) + ($10 x 18) = $730 total pay.

If the second week is given the overlapping time: In the first week, there is 20 hours standard time.  In the second week there is 48 hours, so 40 standard time and 8 overtime.  ($10 x 20) + ($10 x 40) + ($15 x 8) = $720 total pay.

Putting the hours into the first week results in more pay. So, the final calculation is with the first week receiving the overlapping hours, and total pay is $730.

 

Example 22:  Hourly, change in workweek, piecework, overtime.

An employee moves from Sunday 12AM -> Sunday 12AM workweeks to Wednesday 12AM -> Wednesday 12AM workweeks. This creates overlapping weeks. TimeIPS will assign time to the week which results in the most pay. 

The employee earns $10/hour. During the range of Sunday 12AM to Wednesday 12AM (10 days) the employee works:

If the first week is given the overlapping time: In the first week (Sun->Sun) the employee has 50 hours in the week, receiving 10 hours of overtime.  First week pay is $550. In the second week, there is 18 hours standard pay plus commission.  Second week pay is $380.  ($10 x 40) + ($15 x 10) + ($10 x 18) + $200 = $930 total pay.

If the second week is given the overlapping time: In the first week, there is 20 hours standard time, totaling $200.  In the second week there is 48 hours, so 40 standard time and 8 overtime, plus commission.

Calculate the FLSA Regular Rate:
48 x $10 = $480 for total pay for time worked. That $480 + $200 for commission = $680. $680 divided by the 48 total hours worked = The FLSA Regular Rate of $14.166/hour.

Add in Overtime Pay:
The 8 hours of overtime were at $14.166/hour.  These hours will have 1/2 the Regular Rate added, so (8 x $7.08) = $56.66.  $680 + $56.66 = $736.66 total pay for the second week. $736.66 + $200 (for the first week) = $936.66 total pay.

In this case, putting the hours into the second week results in more pay, even though it results in less overtime. The final calculation is with the second week receiving the overlapping hours, and total pay is $936.66.

 

Example 23:  Salary Non-exempt, Overtime, Benefits, Minimum Wage

In a workweek, an employee works:

Calculate the FLSA Regular Rate:
Since this employee is salary non-exempt for all hours worked, all hours including benefit time are used to calculate the FLSA Regular Rate. $500 divided by (45 hours worked + 8 hours benefit time) = $9.43396/hour. However, this is below minimum wage of $15, so the FLSA Regular Rate is $15/hour and is used to calculate that weeks pay. So 45 x $15  = $675.

Add in Overtime Pay:
Because the 4 hours of sick time "count toward overtime", the 40 hours in a week to reach overtime are reduced to 36 hours. 45 hours worked - 36 = 9 hours of overtime. For each of the 9 hours of overtime, additional pay of 1/2 the Regular Rate will be paid. So 9 x $7.50 = $67.50. $67.50 + $675 = the total pay of $742.50 for worked time.

Add in Benefit Pay:
Minimum wage does not apply to benefit time, so the 8 hours of benefit time are multiplied by the adjusted hourly rate of $9.43396. (8 x $9.43396) + $742.50 = $817.97.

 

Example 24:  Salary Non-exempt, Nonstandard Work Week

In some industries, employees have nonstandard workweeks. This employee has 14 day workweeks and in one workweek they worked:

No FLSA Regular Rate needed since there is no overtime.

Salary for all hours worked will be paid in full for any week with worked time or paid benefit time. The salary of $700 per week is pro-rated to cover the longer 14-day workweek.  $700 x 14 days / 7 days = $1400 total pay.



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