Most workers recognize the "time and a half" rule (1.5×) for hours worked past 40 in a workweek, yet payroll disputes rarely come from hourly single-rate shifts. They happen when someone is salaried non-exempt, earns a non-discretionary bonus, or works two different hourly rates in the same week.
1. The Regular Rate Is Not Always the Base Hourly Wage
Under the U.S. Fair Labor Standards Act (FLSA), overtime is 1.5 × regular_rate for hours over 40 in a single seven-day workweek. If an employee earns $24/hour for 40 hours plus a $120 non-discretionary production bonus and works 45 hours:
Total straight-time compensation = (45 × $24) + $120 = $1,080 + $120 = $1,200
Regular rate = $1,200 / 45 = $26.67/hour
Overtime premium (the extra 0.5×) = 5 × $26.67 × 0.5 = $66.67
Gross weekly pay = $1,200 + $66.67 = $1,266.67
Notice why multiplying 5 × 1.5 × $24 ($180 added to 40 × $24, totaling $1,140 + $120 = $1,260) underpays by $6.67: the bonus belongs inside the regular rate denominator.
2. Two Rates in One Week (Weighted Average vs. Agreement)
When an employee works 30 hours at $20/hour ($600) and 20 hours at $30/hour ($600), the default weighted regular rate across all 50 hours is $1,200 / 50 = $24/hour, making the 10 overtime hours earn an additional 0.5 × $24 = $12/hour premium ($1,320 total).
3. State Daily Overtime Rules
Federal FLSA looks only at the 40-hour week, whereas states like California also trigger 1.5× after 8 hours in a day and 2.0× after 12 hours in a day.
To check weekly overtime totals across base rates and extra hours interactively, use the Miryori Overtime Calculator.
Note: Examples above illustrate standard arithmetic; check state labor codes and employment classification rules for specific payroll cases.