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Home > Payroll > Pay Statements & Understanding My Pay > How Is Hourly Pay Calculated?
How Is Hourly Pay Calculated?
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Hourly pay is calculated based on hours actually worked, in compliance with federal and state wage laws.

 

Quick Answer
Hourly pay equals your hourly rate multiplied by the number of hours worked, plus overtime pay when applicable.

 

What Counts as Hours Worked

Hours worked may include:

  • Time performing job duties

  • Required meetings or training

  • Work-related travel time (when applicable)

  • Any time you are required or permitted to work

 

Overtime Calculation

  • Overtime is generally paid when an employee works more than 40 hours in a workweek, unless an exemption applies.

  • Overtime is paid at 1.5 times the regular rate of pay, in accordance with applicable law.

  • In Colorado, in accordance with state law, overtime is paid for hours worked over 12 in a single workday, even if total weekly hours do not exceed 40. When both daily and weekly overtime apply, overtime is paid for the greater applicable calculation, not duplicated.

 

Earnings That Count Toward Overtime

The regular rate used to calculate overtime may include:

  • Hourly wages

  • Certain commissions or incentive pay (as required by law)

PTO, holiday pay, bonuses, and other paid time not worked do not count as hours worked for overtime purposes.

 

Important Reminder

Overtime eligibility and calculation are based on work location and applicable state law, not just job title or hours worked. LWG complies with all federal and state overtime requirements.

 

Need More Help?
If you have questions about hours worked or overtime pay, HR can help review your pay statement. https://leedswestgroups.happyfox.com/new/

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