What is time and a half?

Time and a half refers to the practice of paying employees one and a half times their regular rate of pay for any hours worked beyond their standard workweek. This is a common practice in the United States and other countries to compensate employees for the additional time and effort required to work overtime.

Image showing meaning of time and a half

For example, if an employee earns $20 per hour as their standard rate of pay and works 40 hours per week, they would be paid $800 for a regular workweek. If they work an additional 8 hours in a week, they would be paid time and a half for those hours, which would be $30 per hour. So, the employee would be paid $240 (8 hours x $30 per hour) in addition to their regular pay for a total of $1040 for that week.

This practice is based on federal and state laws, which may vary with the specific jurisdiction. The Fair Labor Standards Act (FLSA) in the United States requires that non-exempt employees be paid time and a half for any hours worked over 40 hours per week. Some states also have their own laws, which may be more restrictive than the federal laws.

It’s important to note that not all employees are eligible for time and a half pay, as some jobs and positions are exempt from overtime pay. Employers are required by law to classify employees as exempt or non-exempt, and if the employee is exempt, they may not be eligible for overtime pay.

How to calculate time and a half?

Time and a half pay is calculated by multiplying an employeeā€™s regular rate of pay by 1.5 for any hours worked over 40 in a workweek. Hereā€™s a simple breakdown:

If an employee earns $20 per hour as their standard rate of pay and works 40 hours per week, they would make $800 for a regular week. If they work an additional 8 hours, those hours are paid at time and a half, or $30 per hour (1.5 x $20). For the extra 8 hours, they would earn $240, bringing their total pay to $1040 for that week.

This calculation is based on the employeeā€™s regular rate of pay, which includes any extra earnings like commissions or bonuses. Itā€™s important to note that non-exempt employees who work more than 40 hours in a week are entitled to overtime pay according to the Fair Labor Standards Act (FLSA) in the United States. This ensures they are fairly compensated for hours worked beyond the standard 40-hour workweek.

This method applies to nonexempt employees and ensures compliance with federal law by fairly compensating for overtime.