David’s Week: The Facts
David’s overtime week: key facts
| Factor | Value |
|---|---|
| Base hourly rate | $28.00/hr |
| Total hours worked | 52 hours |
| Workweek | Sunday to Saturday |
| Regular hours | 40 hours |
| Overtime hours | 12 hours |
| Non-discretionary attendance bonus | $150 (paid because he worked all 5 days without absence) |
Step 1: Calculate Straight-Time Earnings
Straight-time total: 52 hours × $28.00 = $1,456. This is all hours at the base rate — we’ll add the overtime premium separately.
Step 2: Add the Non-Discretionary Bonus
David’s attendance bonus is non-discretionary (he knew in advance he’d earn it by working all 5 days). It must be included in the regular rate calculation: $1,456 + $150 = $1,606.
Step 3: Calculate the Regular Rate
Regular rate = Total straight-time earnings ÷ Total hours worked: $1,606 ÷ 52 hours = $30.88/hr. This is higher than David’s base rate because the bonus increased his average.
David’s complete overtime pay calculation with non-discretionary bonus
| Step | Calculation | Result |
|---|---|---|
| Straight-time total | 52 hours × $28/hr | $1,456 |
| Plus bonus | $1,456 + $150 | $1,606 |
| Regular rate | $1,606 ÷ 52 hours | $30.88/hr |
| Overtime premium (0.5×) | $30.88 × 0.5 × 12 OT hours | $185.29 |
| Total gross pay | $1,606 + $185.29 | $1,791.29 |
Incorrect method (common employer error): (40 × $28) + (12 × $42) + $150 = $1,120 + $504 + $150 = $1,774. Correct method (per FLSA): $1,791.29. Difference: $17.29 per week. With consistent 12-hour overtime weeks and weekly bonuses: approximately $899/year in underpayment from this calculation error alone.
What David’s Gross Pay Looks Like Before and After Taxes
David’s gross for the week: $1,791.29. After federal income tax withholding (approximately 22% marginal, based on annualized pay), FICA (7.65%), and assuming no state tax (hypothetical): estimated net for the week ≈ $1,318 (approximately 73.5% of gross). The more important number for David is verifying the gross is correct before taxes apply.
Calculate Your Overtime Pay Including Bonuses
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