Taxation and Regulatory Compliance

What Is Time and a Half for $15 an Hour?

Calculate time and a half for $15 an hour. Learn the formula and understand the federal and state regulations that determine when this premium pay applies.

“Time and a half” refers to a higher pay rate for specific work conditions, most frequently applying to overtime hours. This article clarifies its meaning, demonstrates its calculation, and explains when it applies, particularly for a base hourly rate of $15.

Calculating Time and a Half

Time and a half means the regular hourly rate multiplied by 1.5. This calculation provides the premium rate for eligible hours worked. The formula is: Regular Hourly Rate × 1.5 = Time and a Half Rate.

Applying this formula to a $15 hourly rate, the calculation is $15 × 1.5 = $22.50. An individual earning $15 per hour would be paid $22.50 for each hour worked under time and a half conditions. For example, if an employee works 40 regular hours and 5 hours at time and a half, their total earnings would be $600 (40 hours x $15) plus $112.50 (5 hours x $22.50), totaling $712.50 for the week.

Federal Overtime Requirements

The Fair Labor Standards Act (FLSA) is the primary federal law governing overtime pay in the United States. It generally requires employers to pay non-exempt employees one and one-half times their regular rate for all hours worked over 40 in a workweek. The FLSA also establishes minimum wage, recordkeeping, and youth employment standards.

An FLSA “workweek” is a fixed 168-hour period, consisting of seven consecutive 24-hour days. It does not need to align with a calendar week but must remain fixed once established. Overtime is calculated based on hours worked within this workweek; averaging hours over multiple weeks is not permitted. The distinction between “exempt” and “non-exempt” employees is important. Non-exempt employees are typically eligible for overtime pay, while exempt employees are not. Most hourly workers are non-exempt and receive overtime for hours exceeding 40 in a workweek.

State Overtime Laws

While the FLSA establishes a federal baseline for overtime pay, individual states can implement their own labor laws. These state laws may offer greater protections or different overtime rules. For instance, some states mandate overtime pay after a certain number of hours worked in a single workday, such as 8 hours, rather than solely after 40 hours in a workweek.

State laws can also have varying minimum wage rates, which affect the base rate for overtime calculations. In situations where both federal and state laws apply, the rule more favorable to the employee typically takes precedence. Workers should be aware of both federal and state regulations to ensure appropriate compensation.

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