Accurate Time Tracking Is So Much Easier With Workyard
Time and a half is compensation for the workers that have over the standard 40-hour week, but there are a lot of factors that influence the final salary.
Time and a half is the amount you owe to workers working overtime.
Employees that are under the Fair Labor Standards Act or FLSA are entitled to extra payment for their extra hours. Considering each working week should be limited to 40 hours, everything above that is noted as overtime.
Time and a half refers to your need to pay the existing hourly wage plus 50% more for every hour your employee works overtime on top of the employee’s standard hourly rate. Keep in mind that your payment method and timesheet are not relevant, and the overtime pay is always calculated on a weekly basis even if you pay your workers bi-weekly.
In addition, some states have even more strict rules and demand time and a half calculations on a daily basis. But, considering there are situations where employees do cheat on time entries and time is notoriously difficult to collect accurately for hourly workers, you need to be familiar with the topic more and fully comprehend the calculation.
As mentioned before the only workers entitled to time and a half are the ones under the FLSA, but what does that mean? The workers who are under the protection of FLSA are hourly and non-exempt employees.
Here is how to make a difference between your exempt and non-exempt workers:
The US Department of Labor enforces FLSA requirements on a federal level. This means that states have the opportunity and the right to make the laws even more strict and enforce additional rules and regulations for overtime wages.
Some states such as California, Nevada, or Alaska insist on overtime pay for every day when the employee works over 8 hours, and every overtime hour is calculated daily. So, if you are not sure about your state’s laws it’s a good idea to contact a payroll specialist or rely on a Time Tracking App that has all the regulations built into the software.
Now that you are familiar with the terminology and know what is time and a half pay, you might be wondering how to make the exact calculations for hourly and salaried employees and avoid potential problems and fines in the future.
Before we discuss the calculation process with examples let’s focus on the most important factor that can influence the final results – FLSA rules and state rules.
Depending on your state of residence the rules and regulations concerning overtime pay can be different, so you need to be familiar with FLSA rules and state-by-state rules.
The general FLSA guidelines followed by many states say – Overtime is owed to all non-exempt employees in your organization who work more than 40 hours in any given workweek.
The FLSA requires that it be at least one and a half times the employee’s regular rate.
In some cases, the state law is adjusted and you need to consider additional rules for the calculation of the overtime pay.
Here are a few examples:
Calculating the time and a half pay for hourly employees is the easiest process considering you just need to add the hours.
To calculate the overtime pay rate for an hourly employee, follow these steps:
Workers with fixed salaries per week can sometimes be under the FLSA, so consider the following calculation.
Calculating gross compensation for a nonexempt hourly employee who works a variable amount of hours depending on the week at hand necessitates a unique technique.
Their regular hourly wage will vary based on the number of hours they worked that week.
The Fair Labor Standards Act (FLSA) mandates employers to pay their employees solely for the time spent on the job. So, whether the employee works on holidays or not, if it is not overtime, the company is not required to pay time and a half.
In practice, however, most private-sector firms in the United States either give their employees the day off or pay them holiday pay which is higher for working on the holiday.
The holidays include:
Yes, overtime payment is mandatory and employers can face detrimental and expensive wage and hour lawsuits.
Even if the overtime is not authorized it’s illegal to miss the overtime pay. However, it is not unlawful to implement overtime policies that ban unauthorized overtime at your workplace. Furthermore, it is not illegal to penalize or remove individuals who frequently violate corporate policies.
Employers who fail to pay employees for overtime worked may be liable for back hourly wages, liquidated damages, and possibly legal expenses. Furthermore, the Department of Labor (DOL) has the authority to levy fines for repeated or willful infractions.
Overtime and time and a half are almost the same and many people confuse the two terms, however, time and a half is only one component to calculate overtime.
In some circumstances, such as California’s working laws, workers are entitled to double time if they work more than 12 hours in a single day or eight hours on the seventh consecutive day of a single work week.
So, overtime is the main term to learn and use, while time and a half or double time are just the components used in calculation depending on the state and laws.
Managing the payroll, weekly pay, and doing all the calculations is challenging, and if we add the various working weeks, hours, and overtime the tracking and payment will cost a lot of money and time. If you are relying on older methods such as paper trails, spreadsheets, or manual input of working hours you can face a lot of difficulties.
This is why one of the best investment decisions for your company is a reliable time tracking app.
Here are a few reasons why you will benefit from the time tracking app:
Did you find this post helpful? Please rate it!
In this article, we cover how to calculate overtime pay, which employees are entitled to overtime pay, as well as some key tips of how to save thousands on your overtime costs.
In this quick guide, we're going to take a deeper look at how travel time pay for construction workers works, the federal and state regulations, and how to best manage (and optimize) travel time pay for your hourly employees.
In this article, we share 6 tips on how to improve construction labor productivity including how technology can save you thousands.
Workyard provides leading workforce management solutions to construction, service, and property maintenance companies of all sizes.