Labor Department Releases Overtime Calculator

Most employers and employees understand that the federal Fair Labor Standards Act requires that time and one half an employee’s regular rate be paid for all overtime hours worked. In practice, however, there can be a great deal of confusion about exactly how that is to be done.

The Department of Labor has created a calculator to help determine how to calculate overtime. It still can be a little complex, so I would not use that calculator as the sole basis for determining how to calculate overtime. However, the calculator does highlight some common misconceptions or misunderstandings about how overtime is or is not calculated.


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