University of California, Riverside

Human Resources



Calculate Overtime


To calculate the premium overtime rate, include all salary-related payments and compensation (e.g., base, on-call, shift differential, specialty, stipend and police certification pay) for the week, and then divide by the number of hours actually worked.

Before You Begin

The following examples are intended for non-represented staff employees.  Additional resources can be found at:

To determine overtime calculations for represented employees, the appropriate bargaining unit contract provisions must be applied.

Calculating Rates

The Fair Labor Standards Act (FLSA) requires premium overtime calculations to be based on hourly rates, either actual or derived. To convert an annual rate to an hourly rate, divide by 2,088 (hours per year); to convert a monthly rate to an hourly rate, multiply by 12 (months per year) and divide the result by 2,088.

Annual Salary / 2,088 = Regular Rate

Example 1:  Base Pay & On-Call

An employee's regular rate of pay is $15.00 per hour, and there is an on-call shift of 8 hours at 25% of the regular rate. During a workweek the employee works 48 hours and is on-call 8 hours. The premium overtime rate is computed as follows:

STEP 1: 

48 (hrs worked) x $15.00 = $720.0

8 (on-call hrs) x $3.75 (25% of reg. rate) = $30.00

$720.00 + $30.00 =

$750.00  Total Straight Time Compensation

STEP 2: 

$750.00 / 48 (hrs worked) = $15.63 (adjusted hourly rate)

$15.63 x ½ = $7.82 (premium OT payment per hour)

8 (hours overtime) x $7.82 =

$62.56  Total Premium Overtime Payment

STEP 3:

$750.00 (straight time) + $62.56 (premium OT) = $812.56

TOTAL WEEKLY COMPENSATION = $812.56
Example 2:  Base Pay (Two Different Base Rates)

An employee has two part-time appointments. During a workweek, the employee works 20 hours at a rate of $15.00 per hour in one classification and 26 hours at a rate of $15.50 per hour in the second.

STEP 1:

20 hrs worked (title 1) x $15.00 reg. rate (title 1) = $300.00

26 hrs worked (title 2) x $15.50 reg. rate (title 2) = $403.00

$300.00 +  $403.00 =

$703.00  Total Straight Time Compensation

STEP 2:

$703.00 / 46 total hrs worked = $15.28 (adjusted hourly rate)

$15.28 x ½ = $7.64 (premium OT payment per hour)

6 (hrs OT) x $7.64 =

$45.84  Total Premium Overtime Payment

STEP 3:

$703.00 (straight time) + $45.84 (premium OT) = $748.84

TOTAL WEEKLY COMPENSATION = $748.84

Overtime Payment

Although calculated on a workweek basis, premium overtime payments are not required to be made on a weekly basis.  Payment for overtime may be made at the end of the regularly scheduled pay period in which it was earned.

If overtime pay cannot be accurately calculated in advance of the applicable payday, it may be paid in the next regular payday after the amount is computed.

More Information

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Human Resources
1201 University Ave., Suite 208
Riverside, CA 92507

Tel: (951) 827-5588
Fax: (951) 827-2672

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