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The following calculation examples assume the employee is non-exempt from overtime requirements of the Colorado Overtime and Minimum Pay Standards Order (“COMPS Order”) #36. For more information about COMPS coverage contact the Division at 303-318-8441.
The calculation of regular rate and overtime pay should be conducted very carefully, and other methods of calculation not described may be appropriate depending upon the particular circumstances.
Salary Paid Weekly for a Fluctuating Workweek Example
A non-exempt employee receives a $1,000.00 weekly salary. The employee works 50 hours in one specific week (the hours worked may vary weekly). The overtime computation is:
Salary Paid Weekly For a Fixed Workweek Example
A non-exempt employee receives a $500.00 weekly salary for an agreed, fixed workweek of 40 hours. The employee works 43 hours in one week. The overtime calculation is:
Salary Paid Monthly Example
A non-exempt employee receives a salary of $4335.00 per month. The employee works 50 hours in one week. The overtime computation is:
Piece Rate Overtime Calculation Example
When an employee is paid on a piece rate basis (for example, a certain amount is paid for every piece, dozen pieces, or for each service completed), the regular rate of pay is computed by first adding together the total earnings for the workweek from all piece rate work plus any other amount from that week for hours worked, waiting time, etc. This sum is then divided by the total number of hours worked in that week. For example, an employee works 50 hours in a week,earns a total of $500.00 for all piece work completed, and also receives a $100.00 nondiscretionary bonus that week.
Tipped Employee Overtime Calculation Examples
(Three Equivalent Methods)
Straight time earnings for all hours worked, half-time OT
Straight time earning for regular hours worked, 1 ½ OT
Tip credit applied before calculations
For additional information about tipped employees, see Interpretive Notice & Formal Opinion (“INFO”) # 3: Tips (Gratuities) and Tipped Employees Under Colorado Wage Law
Non-Exempt Employee Working Two Jobs Example
An employee working two non-exempt jobs at different hourly pay rates for the same employer within a specific workweek may be paid overtime using either of the following methods, provided that the employee is notified in advance which method will be used:
For example, in one workweek, a non-exempt employee works 40 hours per week at $15 per hour, and then performs 10 hours of different duties at different times during the workweek at a rate of $12 per hour. The weighted average regular rate of pay for this employee would equal [(40 X $15) + (10 X $12)] / 50 = $14.40 per hour regular rate. Thus, using this calculation method, the employee would be owed overtime at a rate of $14.40 X .5 = $7.20 per hour for overtime work.
Colorado Overtime and Minimum Pay Standards Order (“COMPS Order”) #3629 Code of Federal Regulations 54829 Code of Federal Regulations 778.111 (Pieceworker)29 Code of Federal Regulations 778.113 (Salaried Employees General Information)29 Code of Federal Regulations 778.114 (Salary for Fluctuating Hours)29 Code of Federal Regulations 778.418 (Pieceworkers)
U.S. Department of LaborFLSA Overtime Fact SheetCode of Federal RegulationsFLSA Overtime Calculator
Colorado Division of Labor Standards and Statistics | 303-318-8441 | Contact Us