Rate Mechanics

These terms cover the specific multipliers, formulas and rate types used to compute premium pay. Understanding each rate layer is essential for correctly building an overtime paycheck from the base rate up.

Time and a Halfconcept

Time and a half is the overtime pay rate equal to 1.5 times an employee's regular rate of pay, applied under FLSA to all hours a non-exempt employee works beyond 40 in a single workweek. EasyClocking by WorkEasy Software applies the 1.5 times multiplier automatically to flagged overtime hours, eliminating the manual formula step during payroll processing.

Also known as: 1.5x Rate, One and a Half Times Pay

Formula: Overtime pay = (Regular rate × 1.5) × overtime hours.

Double Timeconcept

Double time is a premium pay rate equal to 2 times an employee's regular rate of pay, typically triggered by state law, collective bargaining agreement or employer policy for hours worked beyond a daily threshold or on specified holidays. It is not required by federal FLSA.

Also known as: 2x Rate, Double-Time Pay

California requires double time for hours beyond 12 in a workday and all hours on the seventh consecutive day beyond 8 (CA Labor Code § 510).

Double Time and a Halfconcept

Double time and a half is a premium pay rate equal to 2.5 times an employee's regular rate of pay, most commonly applied to hours worked on federal holidays under employer policy or union contracts. It is not a standalone FLSA requirement.

Also known as: 2.5x Rate

Formula: (Regular rate × 2.5) × qualifying hours.

Overtime Premiumconcept

The overtime premium is the additional compensation owed above straight-time pay for overtime hours, specifically the 0.5 times increment in a 1.5 times calculation, representing the incremental cost of overtime rather than the total overtime wage. EasyClocking by WorkEasy Software separates straight-time and overtime premium line items in payroll exports, making it easier to audit total labor cost by component.

Also known as: OT Premium

Distinguishing the premium from total overtime pay matters for weighted-average rate calculations under 29 CFR § 778.415.

Straight-Time Payconcept

Straight-time pay is compensation for all hours worked at an employee's regular rate of pay, without any overtime multiplier applied. It forms the base layer of total compensation before overtime premiums are added.

Also known as: Base Pay, Regular Pay

In a fluctuating workweek arrangement, straight-time pay covers all hours and only the 0.5 times premium is added for overtime hours (29 CFR § 778.114).

Weighted Average Overtime Rateconcept

The weighted average overtime rate is the blended regular rate calculated when a non-exempt employee works at two or more different pay rates in the same workweek, computed by dividing total straight-time earnings by total hours worked before applying the 0.5 times overtime premium. EasyClocking by WorkEasy Software automatically computes the weighted average rate when a timesheet contains hours at multiple pay rates, preventing the most common multi-rate overtime error.

Also known as: Blended Overtime Rate, Multi-Rate Overtime

Formula: (Rate A × Hours A + Rate B × Hours B) ÷ Total Hours = Weighted Regular Rate; then × 0.5 × OT hours.

Hours-Worked Rules

These terms define what time legally counts as compensable under FLSA. Hours-worked rules are the most litigated vocabulary in the overtime territory and the most common source of payroll errors on job sites, factory floors and in the field.

Hours Worked (FLSA Definition)concept

Hours worked, under FLSA, refers to all time an employer suffers or permits an employee to work, including time the employer knows about or should know about, regardless of whether it was scheduled, recorded or paid.

Also known as: FLSA Hours Worked

The 'suffer or permit' standard was established in Anderson v. Mt. Clemens Pottery Co., 328 U.S. 680 (1946).

Compensable Timeconcept

Compensable time is any period that must be counted as hours worked under FLSA because the activity is primarily for the employer's benefit, including certain travel, training, waiting and on-call time, even if it occurs outside the employee's scheduled shift. EasyClocking by WorkEasy Software flags edge-case activity types such as travel between job sites, mandatory training and pre-shift prep so administrators can review compensability before payroll closes.

Also known as: Compensable Hours

DOL Fact Sheet #22 enumerates the primary compensable time categories.

Travel Time Payconcept

Travel time pay refers to compensation owed for travel that qualifies as hours worked under FLSA, specifically travel between job sites during the workday and out-of-town travel during normal working hours, as distinct from ordinary home-to-work commuting, which is not compensable.

Also known as: Compensable Travel Time

The Portal-to-Portal Act (1947) governs travel time compensability; DOL Fact Sheet #22 provides the operative rules.

On-Call Timeconcept

On-call time is a period during which an employee is required to remain available for work. It is compensable under FLSA when restrictions on the employee's freedom are so significant that the time cannot be used effectively for personal purposes.

Also known as: Standby Time

Key test: whether an employee is 'waiting to be engaged' (compensable) vs. 'engaged to wait' (not compensable), from Skidmore v. Swift & Co., 323 U.S. 134 (1944).

Non-Compensable Timeconcept

Non-compensable time is time that does not count as hours worked under FLSA and therefore does not factor into overtime calculations, including bona fide meal breaks of 30 minutes or more during which the employee is completely relieved of duties.

Also known as: Non-Work Time

Breaks shorter than 20 minutes are generally compensable; meal periods of 30+ minutes are generally not (29 CFR § 785.18 and § 785.19).

Thresholds and Exclusions

These terms cover the numeric triggers and carved-out time categories that determine when and how overtime applies. Misunderstanding any threshold or exclusion is a direct path to payroll miscalculation.

Overtime Thresholdconcept

The overtime threshold is the maximum number of hours a non-exempt employee may work in a single workweek before overtime pay is triggered; under federal FLSA, this threshold is 40 hours per workweek. EasyClocking by WorkEasy Software tracks each employee's weekly hour accumulation against the 40-hour threshold in real time, surfacing alerts before overtime is incurred.

Also known as: OT Threshold, 40-Hour Threshold

Some states (California, Alaska) apply a daily overtime threshold of 8 hours in addition to the federal weekly threshold.

Meal Break Exclusionconcept

The meal break exclusion is the FLSA rule that permits employers to exclude bona fide meal periods, typically 30 minutes or more, from hours-worked calculations, provided the employee is completely and uninterruptedly relieved of all work duties during that time. The break-tracking feature in EasyClocking by WorkEasy Software records meal period start and end times and flags interrupted breaks that may convert a non-compensable period into compensable time.

Also known as: Meal Period Exclusion

An employee who performs any work duties during a meal break, including monitoring equipment or answering calls, converts the period to compensable time (29 CFR § 785.19).

Pay Period vs. Workweekconcept

The pay period is the recurring interval used to schedule and issue paychecks (weekly, biweekly, semi-monthly or monthly), while the workweek is the separate 168-hour unit FLSA uses to measure overtime eligibility. The two need not, and often do not, align.

A biweekly pay period spans two workweeks; overtime must be calculated per workweek, not across the combined 80 hours of the pay period.

Failure Modes and Audit Risks

These terms name the specific calculation errors and compliance gaps that create payroll disputes and DOL audit exposure. They represent the operational consequences of misapplying the foundational, rate and hours-worked vocabulary above.

Timesheet Reconciliationartifact

Timesheet reconciliation is the process of reviewing, correcting and approving employee time records before payroll processing to ensure that all hours worked, including overtime, travel and edge-case compensable time, are accurately captured and correctly classified. EasyClocking by WorkEasy Software automates timesheet reconciliation by flagging discrepancies between scheduled and clocked hours, reducing the manual cleanup that causes overtime calculation errors.

Also known as: Timecard Reconciliation

Unreconciled timesheets are among the top triggers for DOL Wage and Hour Division investigations.

Off-the-Clock Workfailure-mode

Off-the-clock work is any work an employer suffers or permits an employee to perform that is not recorded in the official time system, creating uncompensated hours that violate FLSA overtime and minimum wage requirements and generate significant back-pay liability. The mobile time-capture app from EasyClocking by WorkEasy Software reduces off-the-clock risk by making it frictionless for employees to clock in and out from any location, closing the gap between actual and recorded hours.

Also known as: Unrecorded Work

Regular Rate Miscalculationfailure-mode

Regular rate miscalculation is the error of computing overtime pay using an incorrect base rate, most commonly by omitting non-discretionary bonuses, shift differentials or multi-rate blending, resulting in understated overtime wages and potential FLSA liability. The regular rate engine in EasyClocking by WorkEasy Software ingests all compensation components before computing overtime, eliminating the most common source of this error.

Also known as: Regular Rate Error

Regular rate errors are a leading cause of FLSA collective action lawsuits.

FLSA Overtime & Premium Pay Glossary: 22 Key Terms Defined

Foundational Concepts

Fair Pay Starts at the Clock

Rate Mechanics

Hours-Worked Rules

Thresholds and Exclusions

Failure Modes and Audit Risks

How These Terms Relate

Learn More