The regular rate is not the hourly rate, and that difference is where the liability lives.
Esshaki Legal Media TeamCurrent as of February 2024
Non-exempt employees must receive overtime at one and a half times the regular
rate for hours over the weekly threshold. The disputes are almost never about
the multiplier; they are about the rate and the hours.
The regular rate includes almost all remuneration: hourly wages, non-
discretionary bonuses, shift differentials, commissions, and the value of
certain prizes. It excludes gifts, discretionary bonuses genuinely at the
employer’s option, paid leave, and qualifying reimbursements.
Non-discretionary bonuses must be retroactively allocated across the
workweeks they cover, and overtime recalculated. A quarterly production bonus
paid without that recalculation is a systematic underpayment.
The workweek is the unit. A fixed and regularly recurring period of seven
consecutive twenty-four hour periods. Averaging two weeks together is not
permitted, however the pay period is set.
Hours worked include time the employer suffers or permits, whether or not
authorized. Pre-shift work, post-shift duties, working through unpaid meal
breaks, and after-hours messages all count if the employer knew or should have
known.
State law may require daily overtime or different rules, and the employee
gets the more generous standard.
Records are the employer’s obligation. Where they are missing, employee
estimates carry the day.