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This is where overtime is most often underpaid, and usually not deliberately.
Under the US Fair Labor Standards Act the "regular rate" used to compute overtime includes non-discretionary bonuses, shift differentials and most commissions — not merely the hourly base. A production bonus therefore raises the overtime rate for the period it covers.
Discretionary bonuses, genuine gifts and paid time off are excluded. The distinction is whether the payment was promised or expected in advance; if it was, it belongs in the regular rate.
"Exempt" being about duties rather than title matters: giving someone a manager title does not remove overtime entitlement if the actual work does not meet the test.
If you work at two different rates, overtime is not simply computed at whichever rate you happened to be on.
The weighted average method applies: total straight-time earnings divided by total hours gives the regular rate, and the overtime premium is calculated from that.
So a week of 30 hours at $20 and 20 hours at $25 gives a regular rate of $22 — and the ten overtime hours attract a premium based on $22, not on whichever rate the 41st hour fell under.
1.5 times the regular rate — the standard US federal overtime premium for hours over 40 in a workweek.
A non-discretionary one does, under US rules. Production bonuses, shift differentials and most commissions raise the regular rate used to compute overtime for the period they cover. Genuinely discretionary bonuses do not.
Not under US federal law, which counts hours over 40 in a week. California and some other states add daily overtime over 8 hours and double time beyond 12.
No. There is no legal requirement for a premium — it is contractual. Average pay across the period must still not fall below the minimum wage.
By weighted average: total straight-time pay divided by total hours gives the regular rate, and the premium comes from that — not from whichever rate the overtime hours happened to fall under.