How Is Overtime Pay Calculated?

How Is Overtime Pay Calculated? 8 Reasons You Should Switch to Online Payroll 2020 - Negosentro
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A Short FAQ 

Have you ever been at your job and another member of staff has not come in? Have you seen been offered their working hours on top of your own?

If so, you may become entitled to overtime pay.

Although there are no rigid statutory laws relating to overtime wages, there are some basic rules for calculating and administering overtime that all employees and employers need to know.

But it can get rather technical, so in this short FAQ section, common queries relating to overtime pay in the United States are answered.

What is Overtime Pay?

Overtime pay is essentially more money when you work more hours than you are legally contracted to.

When you sign an employment contract, you agree to a set number of hours of work, and your employer must ensure that the average pay is at least the national minimum wage. If you have concerns that yours is underneath this threshold, please contact Baird Quinn for more information

How Is It Calculated?

Although there is no standard overtime rate, your work contract will outline the pay rate and the overtime rate, which will usually depend on the type of job that you have.

As a basic rule, overtime pay is also known as time and a half. So, if you earn $10.00 an hour and you are then asked to work overtime for five hours, you will earn $15 an hour, as $10 divided by 2 is $5, which is then added on to your base pay of $10.00 to get your overtime pay.

What Are The Different Kinds Of Overtime Pay?

There are different types of overtime pay, which involve time off in lieu (TOIL), and voluntary overtime, which, as the name suggests, carries no obligation for you to work the hours and is completely up to you. Guaranteed overtime is more common when somebody is looking to do overtime as part of their standard contract and will then be drawn up as part of said contract. Non-guaranteed overtime is the example that was mentioned earlier when you are offered somebody else’s shift work, but this may be irregular.

How Many Hours Of Overtime Can Someone Work?

Working Time Regulations oversee matters relating to working hours and overtime.

So, if you are under the age of 18, you cannot work for more than 40 hours a week, including overtime, and must not work for more than 8 hours a day. For adults, this extends to 48 hours a week, but this is often averaged over 17 weeks. As long as your overtime falls within those boundaries, there should not be any issues.

Can Part-Time Staff Claim Overtime?

Yes, part-time staff can usually claim overtime if their employer allows it, but it has to meet the regular working hours of 48 hours per week for adults and 40 hours for those under 18s. If you have a job that is part-time and you typically work 20 hours a week and are then given 28 hours of overtime, then this will be legally acceptable. But you should not exceed or be given a chance to exceed 48 hours per week.

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