Taxation and Regulatory Compliance

What Is Overtime Pay for $19 an Hour?

Demystify overtime pay. Learn how extra hours are compensated, calculate your increased earnings, and understand eligibility for fair wages.

Overtime pay provides additional compensation to employees who work beyond their standard scheduled hours. This compensation serves to fairly remunerate individuals for extended workweeks. It also helps to encourage employers to manage work schedules efficiently, ensuring that employees are properly paid for all time spent working.

The Basics of Overtime Pay

The federal law governing overtime pay is the Fair Labor Standards Act (FLSA). This act establishes standards for minimum wage, overtime pay, recordkeeping, and child labor for both private and public sector employment. Under the FLSA, a standard workweek is defined as 40 hours.

Overtime hours are considered any hours worked over 40 in a defined workweek. The principle of “time and a half” dictates the overtime rate, meaning that the pay for these additional hours must be 1.5 times an employee’s regular rate of pay.

Calculating Overtime for a $19 Hourly Rate

For an employee earning $19 per hour, calculating the overtime rate is straightforward. The regular hourly rate of $19 is multiplied by 1.5 to determine the overtime rate. This calculation yields an overtime rate of $28.50 per hour ($19 x 1.5 = $28.50).

Consider an example where an employee works 45 hours in a single workweek at this rate. The first 40 hours are paid at the regular rate of $19 per hour, totaling $760 (40 hours x $19). The remaining 5 hours are considered overtime. These 5 overtime hours are compensated at the overtime rate of $28.50 per hour, resulting in $142.50 (5 hours x $28.50). The total weekly pay for this employee would be $902.50 ($760 regular pay + $142.50 overtime pay).

Who Qualifies for Overtime Pay

The FLSA distinguishes between “exempt” and “non-exempt” employees when it comes to overtime eligibility. Non-exempt employees are hourly workers and are covered by the FLSA’s overtime provisions. Most hourly wage earners fall into this non-exempt category.

Conversely, exempt employees are not entitled to overtime pay under the FLSA. For an employee to be classified as exempt, they must meet specific criteria related to their job duties and salary. Common categories for exemption include executive, administrative, professional, outside sales, and certain computer employees. Additionally, to qualify for most of these exemptions, an employee must earn a minimum salary threshold, which is currently set at $684 per week, or $35,568 annually. The nature of the duties performed is a primary factor in determining exemption status, rather than just the job title.

Previous

Can I Claim the Earned Income Tax Credit?

Back to Taxation and Regulatory Compliance
Next

Does Income-Based Repayment Include Spouse Income?