Definition

The regular rate of pay is the hourly rate used to calculate overtime under the Fair Labor Standards Act. It includes all job-related compensation except specific statutory exclusions and is found by dividing total weekly earnings by actual hours worked. Overtime is owed at no less than one and one-half times this rate.

Also known as: regular rate, FLSA regular rate

How it works

Under the FLSA, covered nonexempt employees generally must receive overtime for hours worked beyond 40 in a workweek, at a rate not less than time and one-half their regular rates of pay. The regular rate is not simply the base hourly wage. It encompasses all job-related compensation except the exclusions the statute lists.

To calculate it, divide total weekly earnings that count toward the rate by the actual hours worked. When an employee performs different types of work at different rates in one week, overtime is calculated using the weighted average of those rates.

The DOL says the overtime requirement may not be waived by agreement between the employer and employees, and averaging of hours over two or more weeks is not permitted. Payroll systems should therefore capture all earning types, so that overtime is computed on the correct rate each pay period.

Example

The federal overtime regulation gives its own worked example. An employee paid $12 an hour who works 46 hours earns $588 for the week, 46 hours at $12 plus a half-rate premium of $6 for each of the 6 overtime hours. Add a $46 production bonus and the regular rate becomes $13 ($598 divided by 46 hours), so the week's pay rises to $637: 46 hours at $13 plus 6 hours at $6.50. The bonus raises the week's pay by more than its own amount, because it also raises the overtime premium.

How it differs from similar terms

Regular Rate of Pay vs Off-Cycle Payroll. The regular rate determines how much overtime is owed, while off-cycle payroll is a timing mechanism for paying corrections outside the normal schedule, such as when the rate was miscalculated.

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Facts as of Nov 13, 2026 · LeadChange Research Team

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  1. Federal, state and local tax filing
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  3. Overtime and regular-rate calculation
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  7. Records, reporting and audit trail
  8. Off-cycle runs, corrections and final pay

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Frequently asked questions

What does regular rate of pay mean?

It is the hourly rate the Fair Labor Standards Act uses to price overtime. It counts all pay for the work, not only the base wage, minus the payments the law allows employers to leave out.

How do I calculate my regular rate of pay?

Add up the week's pay that counts toward the rate, then divide it by the hours actually worked that week. The result is the regular rate. If you did different jobs at different rates, the rate is the weighted average of those rates.

What is time and a half of the regular rate?

It is the overtime pay floor: each overtime hour must be paid at no less than one and one-half times the regular rate. Because the regular rate can include bonuses and other pay, time and a half is often more than one and one-half times the base wage.

What pay can be left out of the regular rate?

Only the types the law lists. They include true gifts, pay for vacation, holidays and sick leave, reimbursed business expenses, discretionary bonuses, profit-sharing payments and employer contributions to benefit plans. Pay tied to hours, work or performance must be counted.

Can overtime be averaged over two weeks?

No. Overtime is worked out one workweek at a time, and hours cannot be averaged across weeks. Per the DOL, the overtime requirement may not be waived by agreement between the employer and employees.

What is an example of the regular rate of pay?

Take a nonexempt employee paid by the hour who works more than 40 hours in a week and also earns a non-discretionary production bonus. Add the bonus to the straight-time pay for every hour worked, divide that total by all the hours worked to get the regular rate, then pay each overtime hour an extra half of the regular rate on top of the straight-time pay already counted. A bonus therefore raises the overtime owed for that week.

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Sources

The 3 pages this page's facts come from. The date beside each is our last check of the facts taken from it (the oldest, when they differ).

Quotes from the sources
  1. eCFR (Office of the Federal Register) 29 CFR 778.110 Hourly rate employee“Thus a $12 hourly rate will bring, for an employee who works 46 hours, a total weekly wage of $588 (46 hours at $12 plus 6 at $6).” “the regular hourly rate of pay is $13 an hour (46 hours at $12 yields $552; the addition of the $46 bonus makes a total of $598; this total divided by 46 hours yields a regular rate of $13). The employee is then entitled to be paid a total wage of $637 for 46 hours (46 hours at $13 plus 6 hours at $6.50”
  2. dol.gov Fact Sheet #23: Overtime Pay Requirements of the FLSA (U.S. DOL)
  3. dol.gov Fact Sheet #56A: Overview of the Regular Rate of Pay Under the FLSA (U.S. DOL)