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Overtime Pay Calculation

The process of calculating overtime pay for nonexempt employees, including hourly and salaried workers, and the complexities involved in determining the regular hourly rate and applying the statutory premium.

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Jan 6, 2026
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How do payroll systems calculate overtime for salaried nonexempt employees versus hourly workers?

Payroll systems compute overtime for nonexempt employees by first establishing a regular hourly rate and then applying the statutory premium—typically time-and-one-half—to any hours over 40 in a workw...