Overtime Pay Calculation Guide

Don’t Let the Math Confuse You That’s How Employers Win

Filling out overtime pay math can feel overwhelming. Employers often rely on confusion or half-truths to get away with underpayment. If you're not confident in the numbers, it’s easy for mistakes to slip through or claims to go unchecked. But you deserve clarity and justice, and understanding those calculations can uncover real wage violations.

At Horn Wright, LLP, our trusted team has run the numbers on thousands of overtime disputes. We know the tricks employers use, like excluding certain pay elements or misapplying the overtime rate. And we know that once you understand how the math works, you can challenge what’s on your paycheck.

You don’t need to be an accountant to make sense of this. You just need to know what counts under the law, and what a fair calculation looks like.

What Counts Toward the Regular Rate of Pay in New York

Under federal and New York law, the regular rate of pay includes more than base hourly wages. Employers must include most nondiscretionary bonuses, shift differentials, piece‑rate earnings, and commissions when calculating that rate. For example, under FLSA §207(e), those extras must be averaged into your regular rate for overtime purposes.

That means if you received a performance bonus or consistent weekend premiums, they shouldn’t be ignored. Once averaged over total hours worked, they increase your overtime rate automatically. Employers who leave them out are breaking the law, literally shorting you.

Courts have reaffirmed that excluding these bonuses results in improper overtime calculations. When employees identify missing pay elements, they often recover extra wages across multiple weeks or pay periods, especially when bonuses were built into compensation regularly.

Calculating Time and a Half Based on Your Real Wages

Time and a half means 1.5 times your calculated regular rate. But that’s only correct if the calculation is based on your true total earnings. For non‑exempt employees, that includes base pay plus any eligible bonuses or shift premiums. You divide total pay by hours worked to determine your real regular rate, then multiply that by 1.5 for overtime hours.

For example, if you earned $800 in total wages, including bonuses, and worked 40 hours, your regular rate is $20 per hour. Your overtime rate for the 10 hours beyond that would be $30 per hour. If your employer simply calculated overtime using your base rate, then your overtime pay is incorrect, by at least $100 in this scenario.

Your paycheck may show “overtime” but still undercalculate if that true rate wasn’t factored in. That miscalculation can cost hundreds or thousands over time, especially if that error repeats week after week.

How Bonuses and Commissions Affect Overtime

Bonuses and commissions often trip up employers when it comes to overtime calculation. Under FLSA §207(e)(3), commissions earned regularly must be included in the regular rate, unless they meet a strict exemption.

Not every bonus must be added. Discretionary bonuses, like year‑end gifts not tied to hours or performance, may be excluded. But most incentive‑based or performance‑tied bonuses count. That means your employer should be averaging these payments into your weekly earnings to determine the overtime rate.

When commissions or bonuses are omitted, the overtime rate is artificially low. As soon as you identify missing bonus pay, the overtime calculation changes, and your employer may owe you substantially more.

Overtime for Salaried Non‑Exempt Workers

If you’re salaried but still non‑exempt, your salary is just a way to pay you, not a reason to deny overtime. Employers often misclassify employees to avoid calculations altogether. But if your duties qualify you for overtime and you earned less than the proper threshold, you’re still entitled to time‑and‑a‑half.

You must calculate your regular rate by dividing total weekly salary by hours actually worked. Then apply the overtime multiplier for hours over 40. It’s not complex math, but employers often ignore it.

In cases brought under FLSA §7 and NY Labor Law §663, courts have consistently ruled that salary alone doesn’t override overtime obligations. If you’re still doing non‑exempt work, those hours should get compensation, even if you skipped punching a clock.

Real Examples of How Miscalculations Add Up Fast

Mis‑math is rarely accidental. Even a small misstep can create significant shortfalls when multiplied over weeks or months. Employees routinely find discrepancies after reviewing their total wage statements, or when the calculations don’t match the hours they worked.

Here are some real‑world insights:

• When an employer ignored weekend premium pay in the regular rate, one worker lost over $3,000 over six months.
• Another routine issue came from failing to average regular bonuses, resulting in overtime underpayment of 15 percent.
• In misclassified salary cases, calculating time properly added thousands of dollars in recoverable overtime once true hours were documented.

Even without understanding legal specificity, these examples show how inaccurate math can cost you, and how correcting it can recover meaningful money.

How New York’s Calculation Rules Differ from Those in New Hampshire

While overtime math follows FLSA federal rules, New York adds layers of protection. The law mandates explicit inclusion of any recurring bonuses or shift differentials in overtime rates. Maine and New Hampshire tend to follow a narrower interpretation with less rigorous enforcement about bonuses and premiums.

New York also allows up to six years of claims under NYLL §198(3), giving more time for workers to discover miscalculations and recover. States with shorter statutes, like New Hampshire, limit recovery to three years. That longer window in New York means that calculations matter long after a pay period ends.

Because of these differences, New York workers often recover more when audited or reviewed, even if the discrepancy happened several years prior.

Tools You Can Use to Double‑Check Your Employer’s Math

If you suspect your employer didn’t calculate overtime properly, don’t rely only on pay stubs. Use reliable tools, spreadsheets, calculators, or online overtime rate calculators, to double‑check. Many worker advocacy websites provide free calculators specifically designed to incorporate bonus and commission pay when computing overtime.

A personal spreadsheet can help you enter the base rate, add bonuses or night‑shift premiums, calculate total hours, and apply the time‑and‑a‑half rule. If the result doesn’t match your paycheck, you’ve found something worth raising or disputing.

It’s also helpful to gather pay stubs and record dates and amounts of bonuses. That backup makes your math verifiable, especially if you file a complaint with DOL or your attorney.

What to Do When You Spot a Miscalculation

If you find a discrepancy, take action, and don’t wait. First, keep your documentation: pay stubs, bonus statements, schedules, time logs. Then consider your options: filing a complaint with the New York State Department of Labor, or talking to an employment law attorney about a private claim under FLSA §216(b) and New York Labor Law §198(1‑a).

Employers often fix miscalculations quickly when challenged. A formal review or letter can lead to recovery, sometimes before formal filing is needed. If the employer refuses or delays, legal action may be necessary.

Understand that you’re not asking for favors, you are enforcing your rights. Even a few hours undervalued per week can result in significant unpaid wages over time.

How Horn Wright, LLP, Can Help You Verify and Recover What You’re Owed

Math mistakes, or deliberate miscalculations, can cost you thousands. Horn Wright, LLP, can review your wage and hour records, run the numbers, and help you challenge improper pay. Our employment law attorneys know the ins and outs of overtime calculations under both FLSA and New York law, and we’re here to make sure you get every dollar owed.

If you're ready to work with a legal team recognized for fighting wage underpayment in New York, we’re prepared to help.