The U.S. Department of Labor’s Wage and Hour Division has unveiled a free, new Web-based tool to help employers and employees calculate overtime pay under the federal Fair Labor Standards Act (FLSA).
The tool provides examples of how FLSA overtime should be completed under some scenarios. 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.
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The calculator then totals the hours worked during the sample pay period and calculates the overtime pay due for any overtime hours worked. The tool also provides links to definitions and detailed information on overtime pay requirements.
Keep in mind that this new tool only calculates overtime owed under the FLSA. So if your employees are also covered by California overtime rules, it’s wise to seek other assistance if you need guidance on how to correctly calculate overtime pay.