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SBAM | Overtime Pay Calculation – Are You Doing It Correctly?

Michigan Business Network
July 9, 2019 3:00 PM

OTApproaching overtime pay requires understanding the basics of pay.
This starts with determining what the worker’s regular rate of pay is. The regular rate of pay is the base hourly rate plus the dollar value of any nondiscretionary premium payments. 






Non-discretionary pay is any payment that is promised up front if some action or result occurs. This includes shift differentials, on-call or call-in pay, hazard pay, retention, commissions, or other types of bonuses contingent upon an action or result happening. Regular rate of pay is not the same as “regular pay.” Regular pay is whatever the worker’s pay is on an hourly, daily, weekly, per piece, or commission basis.

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Small Business Association of Michigan

The Small Business Association of Michigan is the only statewide and state-based association that focuses solely on serving the needs of Michigan’s small business community. We have been successfully serving small businesses like yours in all 83 counties of Michigan since 1969. We’re located in Lansing, just one block from the Capitol.
 mission is the success of Michigan's small businesses. We do this through:
Advocating for small business
Bringing business owners together to share knowledge
Creating collaboration and partnerships
Delivering group buying power
When small businesses band together through the Small Business Association of Michigan, they achieve more than they could on their own.

Michigan Business Network is an online broadcasting company that provides knowledge, news, and insights into Michigan’s businesses, industries, and economy.