How do you calculate overtime pay in Connecticut?

Understanding how to calculate overtime pay is essential for both employers and employees in Connecticut. Overtime laws ensure fair compensation for hours worked beyond the standard workweek. Both federal and state regulations govern these calculations, with Connecticut’s laws providing additional specifics and exceptions that impact how overtime pay is determined.

In this article, we break down the process of calculating overtime pay in Connecticut, covering various types of employees, including hourly, salaried, piece rate, and commission workers.

Which Overtime Laws Apply in Connecticut?

In Connecticut, overtime regulations are governed by federal and state laws, specifically the Fair Labor Standards Act (FLSA) and Connecticut Overtime Laws. While both provide employee protections, employers must adhere to the regulations that offer greater employee benefits.

Under the FLSA, non-exempt employees are entitled to overtime pay at 1.5 times their regular hourly rate for hours worked beyond 40 in a workweek. However, some employees, including those in executive, administrative, professional, and certain sales roles, may be exempt from this requirement based on their job duties and salary levels.

Connecticut’s overtime laws align with the federal requirement of paying 1.5 times the regular hourly rate for hours worked beyond 40 in a workweek. Yet, the state laws introduce additional exemptions and provisions:

• Individual Contracts and Collective Bargaining Agreements: Overtime provisions may be adjusted under specific individual contracts or collective bargaining agreements, provided they stipulate a regular rate not less than the minimum wage and pay overtime at 1.5 times this rate for hours worked beyond the agreed maximum workweek.
• Piece Rate Employees: For piece rate workers, overtime must be calculated at rates that are at least one and one-half times the regular piece rates for non-overtime hours.
• Hospital Employees: Hospitals can use a 14-day work period to calculate overtime. Overtime must be paid at 1.5 times the regular rate for work beyond eight hours on any day and 80 hours within the 14-day period.

How Much is Overtime Pay in Connecticut?

Overtime pay in Connecticut is one and a half (1.5) times an employee’s regular hourly rate for any hours worked beyond 40 in a workweek. Some employees, however, may be exempt from overtime pay depending on their job duties and salary level, following the state and federal laws.

As of 2024, the state minimum wage in Connecticut is $15.69 per hour, making the overtime minimum wage $23.54 per hour. This rate may increase if the minimum wage is raised.

To learn more, check out our guide on Connecticut Overtime Laws. 

Who is Eligible for Overtime Pay in Connecticut?

Most employees (over age 18) in Connecticut are eligible for overtime pay if they work more than 40 hours in a workweek.

However, certain employees may be exempt from overtime pay based on their job duties, salary level, and classification. Employees covered under collective bargaining agreements or other specific labor laws may have different overtime rules.

Check out our guide on Overtime Rights in Connecticut.

For hourly employees in Connecticut, overtime pay is straightforward and calculated as follows:

• Determine the regular hourly rate: This is simply the employee’s standard hourly wage.
• Calculate the overtime rate: Multiply the regular hourly rate by 1.5 to determine the overtime rate.
• Determine the overtime hours: Identify the hours the employee worked beyond 40 in a workweek.
• Calculate the overtime pay: Multiply the overtime rate by the number of overtime hours.

Example: If an hourly employee earns $20 per hour and works 45 hours in a week, the overtime rate would be $30 per hour ($20 x 1.5). For the five overtime hours (45 – 40), the employee would receive $150 (5 x $30) in overtime pay in addition to their regular earnings for the first 40 hours.

Read our guide on Your Rights as an Hourly Employee in Connecticut to learn more.

For salaried employees in Connecticut who are eligible for overtime, the calculation depends on whether their salary covers a standard 40-hour workweek or a different number of hours.

If the salary covers less than 40 hours:

• Determine the regular hourly rate: Divide the weekly salary by the number of hours the salary is intended to cover.
• Calculate the overtime rate: Multiply the regular hourly rate by 1.5.
• Identify the overtime hours: Employers should pay the overtime rate for each hour worked beyond the number of hours the salary covers. For hours worked beyond 40 in a workweek, time-and-a-half will be paid.
• Calculate overtime pay: Multiply the overtime rate by the number of overtime hours.

Example: If a salaried employee earns $800 per week and their salary covers 35 hours, the regular hourly rate would be $22.86 ($800 / 35). The overtime rate would be $34.29 ($22.86 x 1.5). Employees who work 45 hours would receive their regular rate for the first 35 hours and $34.29 per hour for the ten overtime hours (45 – 35), totaling $342.90 ($34.29 x 10) in overtime pay, in addition to their regular salary.

If the salary covers 40 hours:

• Determine the regular hourly rate: Divide the weekly salary by 40 hours.
• Calculate the overtime rate: Multiply the regular hourly rate by 1.5.
• Identify the overtime hours: Determine the number of hours worked beyond 40 in a workweek.
• Calculate overtime pay: Multiply the overtime rate by the overtime hours.

Example: If a salaried employee earns $800 per week and their salary covers 40 hours, the regular hourly rate is $20 per hour ($800 / 20). The overtime rate would be $30 per hour ($20 x 1.5). If the employee works 45 hours, they will receive $150 ($30 x 5) in overtime pay for the five overtime hours (45 – 40), in addition to their regular salary.

Check out our guide on Your Rights as a Salaried Employee in Connecticut.

Piece rate employees are paid based on the number of units or pieces they produce rather than the number of hours they work. This payment method is common in manufacturing, agriculture, and textiles, where workers are compensated for each item they complete or task they finish.

To calculate overtime pay for piece rate employees:

• Determine the total earnings: Add up the total earnings the employee made during the workweek based on the number of pieces produced.
• Calculate the regular hourly rate: Divide the total earnings by the total number of hours worked that week. This gives the regular hourly rate.
• Calculate the overtime rate: Multiply the regular hourly rate by 1.5 to determine the overtime rate.
• Determine the overtime hours: Identify the number of additional hours the employee worked in a workweek. Any hours beyond 40 are considered overtime.
• Calculate overtime pay: Multiply the overtime rate by the overtime hours to determine the additional overtime pay due.

For example, if a piece rate employee earned $725 in a 45-hour workweek, their regular hourly rate would be $16.11 per hour ($725 / 45). The overtime rate would be $24.17 ($16.11 x 1.5). For the five overtime hours (45 – 40), the employee would be entitled to $120.83 (5 x $24.17) in overtime pay in addition to their regular earnings.

In Connecticut, the statute of limitations for claiming unpaid overtime is two years from the date the wages were due to be paid. If the violation is considered willful, meaning the employer knowingly disregarded the law, the statute of limitations extends to three years.

This means an employee must file a claim or lawsuit for unpaid overtime wages within these timeframes to recover any owed wages. After the statute of limitations has expired, the employee generally loses the right to pursue the claim.

Employers in Connecticut must comply with specific recordkeeping requirements to ensure overtime wage compliance. The state mandates that employers maintain accurate and complete records of the following information:

• Name of the employee
• Home address of the employee
• Occupation of the employee
• Work hours (total daily and weekly hours worked showing the beginning and ending time of each work period, computed to the nearest unit of 15 minutes)
• Earnings (total hourly, daily, or weekly basic wage)
• Overtime (records of overtime hours and overtime wage)
• Payroll records (total hours worked and wages paid, including additions and deductions from wages each period)
• Working certificates for employees aged 16 to 18.

Employers must preserve these records for at least three years and make them readily accessible for inspection by the Wage and Hour Division representatives. To ensure compliance with overtime wage regulations, employers can use any timekeeping method, such as manual records or automated time and attendance software, as long as it is accurate and complete.