If you are a non-exempt employee in Georgia, federal law generally requires your employer to pay overtime at one and one-half times your regular rate of pay for every hour worked over 40 in a single workweek. While that sounds straightforward, calculating overtime is not always as simple as multiplying your hourly wage by 1.5. Depending on how you are paid, your regular rate may include bonuses, commissions, and other forms of compensation.
Understanding how overtime is calculated can help you recognize when you have been paid correctly and when your employer may have made a mistake.
Who Qualifies for Overtime Pay in Georgia?
Georgia does not have its own overtime law for most private-sector employees. Instead, overtime rights are generally governed by the Fair Labor Standards Act (FLSA).
Under the FLSA, most non-exempt employees are entitled to overtime pay for hours worked beyond 40 in a workweek. Whether you qualify depends on your job duties, how you are paid, and whether your position falls within one of the law's exemptions.
Many employees mistakenly believe they are not entitled to overtime simply because they receive a salary. In reality, being paid a salary alone does not make someone exempt. To qualify for many of the FLSA's white-collar exemptions, an employee generally must meet both the applicable salary requirements and the duties test for the position.
Step 1: Determine Your Regular Rate of Pay
The first step is identifying your regular rate of pay.
For many hourly employees, the calculation is simple because the regular rate is their hourly wage. However, the regular rate may also include certain additional compensation, such as:
Some payments, including discretionary bonuses and certain reimbursements, generally are not included when calculating the regular rate.
Because different types of compensation may be treated differently under the FLSA, overtime calculations can become more complicated than they initially appear.
Step 2: Count the Hours Worked During the Workweek
The FLSA measures overtime based on a single workweek, which is a fixed and recurring period of seven consecutive 24-hour days established by the employer.
In most cases, overtime applies only after you work more than 40 hours during that workweek.
Unlike some states, Georgia does not require employers to pay overtime simply because an employee works more than eight hours in one day. An employee who works 10 hours on Monday but finishes the week with only 38 total hours generally is not entitled to overtime under federal law.
Likewise, employers generally cannot average your hours across multiple workweeks to avoid paying overtime. Each workweek stands on its own.
Step 3: Calculate the Overtime Premium
Once you know your regular rate and your total hours worked, you can calculate your overtime pay.
For example, assume you earn $22 per hour and work 46 hours during a workweek.
Your total pay for that week would be $1,078.
If your regular rate includes qualifying bonuses, commissions, or other compensation, the calculation may require additional adjustments before determining the overtime premium.
Common Overtime Calculation Mistakes
Employers do not always calculate overtime correctly. Some of the more common mistakes include:
Treating salaried employees as automatically exempt from overtime
Excluding qualifying bonuses or commissions from the regular rate of pay
Paying straight-time wages instead of time-and-a-half for overtime hours
Averaging hours across multiple workweeks
Failing to count all compensable work time, such as certain pre-shift or post-shift work activities
An incorrect overtime calculation can result in employees being underpaid even when they receive a paycheck every week.
Does Being Paid a Salary Mean You Cannot Receive Overtime?
No. One of the most common misconceptions is that salaried employees are never entitled to overtime pay.
Many salaried employees remain non-exempt under the FLSA and may still qualify for overtime compensation. Whether you are exempt depends on more than your method of payment. Your employer must also satisfy the applicable legal requirements for the exemption, including the duties test.
If your employer classifies you as exempt without meeting those requirements, you may have a claim for unpaid overtime wages.
What Should You Do if You Believe Your Overtime Was Calculated Incorrectly?
If you believe your employer failed to pay you the overtime wages you earned, it is a good idea to preserve records that may help establish your claim. These can include pay stubs, time records, work schedules, emails, and other documentation showing the hours you worked.
Not every payroll discrepancy is intentional, but repeated underpayments, improper classifications, or incorrect overtime calculations may violate the FLSA. An employment attorney can review your circumstances, determine whether your employer complied with federal law, and explain the legal options that may be available.
Questions About Unpaid Overtime? Pankey & Horlock Can Help.
If you believe your employer misclassified your position, miscalculated your overtime pay, or failed to pay overtime wages required under the FLSA, Pankey & Horlock can evaluate your situation and explain your legal rights. Contact us today to schedule a consultation and learn whether you may have a claim for unpaid overtime compensation.