When 'regular rate' isn't so regular: 4 common mistakes in calculating overtime pay

Many employers make the mistake of assuming an employee's overtime pay rate is simply the person's hourly rate multiplied by 1.5—paying "time and a half" the hourly pay rate for overtime hours. In reality, the correct overtime rate is determined by dividing the employee's "total remuneration" for employment in a workweek (subject to a few specific exclusions) by the total number of hours actually worked by the individual in that time period. To compensate overtime-eligible (nonexempt) employees properly and dodge costly wage and hour lawsuits, you should avoid the following common mistakes when it comes to calculating the regular rate for overtime pay.

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