Reviewed Date: 09/12/2023
Computing Regular Rate of Pay - Hourly Employee
The regular rate for an hourly employee is the hourly rate plus any other form of compensation received by the employee, such as non-discretionary bonuses, shift premiums, etc. For all hours over 40 worked in a week, the employee must be paid at least one and a half (1½) times the regular rate. 29 C.F.R. § 778.110(a).
An employee is paid $8 per hour. The employee would be paid $12 for each hour worked during the workweek over 40: ($8 X 1.5 = $12). In other words, the employee is entitled to be paid an amount equal to $8 an hour for 40 hours and $12 an hour for any hours over 40.