Full-Service HR

Overtime Calculation and Paid Time Off

Chelsea Carpenter
Time Sheet
Reading time 1 Mins
Published on Jun 30
Share

A work-week is defined by the Department of Labor (DOL) as 7 consecutive 24-hour periods. Overtime is calculated based on the number of hours worked in the standard work-week, and each week stands alone. Any hours worked over 40, in a given work-week, would need to be paid at time and a half of the employee’s regular rate.

With Independence Day this month, you may be wondering if holiday pay and other time off compensation should be included in overtime calculation. The answer is—it’s up to you! You are only required to pay overtime based on hours “worked”. Holiday pay and time off is simply an employee benefit. It should be clearly stated within your employee handbook whether or not time off will be included in the overtime calculation for your employees. If you have questions on what you should pay an employee during holiday seasons, please contact your payroll specialist. If you have any questions on making changes to your current policy, please reach out to your HR team member.

You may want to read

See all articles
X
X
X
X