# Human Resources

Helping employees maximize their potential

### 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 examples for calculating rates are intended for non-represented staff employees.  Additional resources can be found at PPSM-30: Compensation.

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 =
• 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 =