Calculating overtime pay in Idaho follows federal guidelines under the Fair Labor Standards Act (FLSA) to ensure employees are fairly compensated for extra hours worked.

This guide will explain the steps for calculating overtime pay, explain who qualifies, and outline key exemptions to help employers and employees navigate Idaho’s overtime requirements.

**This Article Covers**

**Understanding Overtime in Idaho**

- Which Overtime Laws Apply in Idaho?
- How Much is Overtime Pay in Idaho?
- Who is Eligible for Overtime Pay in Idaho?
- Who is Exempt from Overtime Pay in Idaho?
- What is the Regular Rate of Pay in Idaho?

**Overtime for Hourly and Salaried Employees in Idaho**

- How do you Calculate Overtime for Hourly Employees in Idaho?
- How is Overtime Calculated for Salaried Employees in Idaho?

**Overtime for Complex Pay Structures in Idaho**

- How do you Calculate Overtime for Tipped Employees in Idaho?
- How do you Calculate Overtime for Commission Employees in Idaho?
- How do you Calculate Overtime for Piece Rates in Idaho?

**Additional Considerations for Idaho Overtime**

- What is the Statute of Limitations for Claiming Unpaid Overtime in Idaho?
- What are the Recordkeeping Requirements for Overtime Wage Compliance in Idaho?

**Understanding Overtime in Idaho**

**Which Overtime Laws Apply in Idaho?**

Idaho does not have a state-specific overtime law. Instead, the state follows the federal overtime regulations under the Fair Labor Standards Act (FLSA), administered by the U.S. Department of Labor (DOL).

Under the FLSA, non-exempt workers are entitled to an overtime compensation equal to 1.5 times their regular rate of pay for any hours beyond 40 in a workweek.

Employers in Idaho are subject to legal consequences if they fail to comply with federal rules.

**How Much is Overtime Pay in Idaho?**

In Idaho, overtime pay is calculated at a rate of one and a half times (1.5x) an employee’s regular hourly wage for each hour worked over 40 in a workweek.

For example, if an employee earns $15 per hour, their overtime rate would be $22.50 per hour ($15 x 1.5) for each hour worked beyond 40 in that workweek.

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

**Who is Eligible for Overtime Pay in Idaho?**

Eligibility for overtime pay in Idaho primarily depends on whether the employee is classified as “non-exempt” under the FLSA. Most hourly workers are considered non-exempt and are thus entitled to overtime pay. This includes:

- Employees who work over 40 hours a week.
- Employees who are paid on an hourly basis.

Certain salaried employees can also qualify for overtime if they earn below the salary threshold set by the Department of Labor, which is, as of July 2024, $844 per week (equivalent to $43,888 annually).

Check out our guide on Overtime Rights in Idaho.

**Who is Exempt from Overtime Pay in Idaho?**

Exempt employees in Idaho are not entitled to overtime pay under the FLSA. If an employee meets these criteria, they are considered exempt:

**Salary Basis Test:**The salary basis test requires that an employee be paid a fixed salary rather than an hourly wage. To qualify as exempt, the employee’s salary must meet the minimum threshold set by the FLSA, which is currently $844 per week (equivalent to $43,888 annually).**Salary Duties Test:**Besides the salary basis, the employee’s job duties must meet specific criteria that align with one of the exempt categories. The duties test ensures that the employee’s primary job functions fit within the defined exemption classifications.

There are several exempt categories under the FLSA, which include:

**Executive Employees:**Employees who manage the enterprise or a recognized department, regularly direct the work of at least two full-time employees, and have authority over hiring and firing decisions.**Administrative Employees:**Employees who perform office or non-manual work directly related to management or general business operations and exercise discretion and independent judgment on significant matters.**Professional Employees:**Employees who engage in work that requires advanced knowledge in a field of science, learning, or arts, usually acquired through specialized education or training. This category includes lawyers, doctors, and creative professionals.**Computer Employees:**They may qualify if they work as computer systems analysts, programmers, software engineers, or perform similar tasks. They must earn at least $27.63 on an hourly basis.**Outside Sales Employees:**Employees primarily conduct sales activities outside the employer’s workplace. There is no minimum salary requirement for this exemption, as the nature of the job involves working away from the office.

Employees who do not meet the salary basis and salary duties tests or who do not fit within one of the exempt categories are entitled to overtime pay for hours worked over 40 a week.

**What is the Regular Rate of Pay in Idaho?**

The regular rate of pay in Idaho is the standard hourly wage an employee earns before overtime or additional compensation. It includes all forms of compensation, such as hourly wages, salaries, commissions, and certain bonuses. For hourly wage workers, their regular rate of pay is simply their hourly wage. For others, such as those earning salaries, commissions, or certain bonuses, the total compensation is divided by the total number of hours worked in a week to calculate the regular rate of pay.

**Overtime for Hourly and Salaried Employees in Idaho**

**How do you Calculate Overtime for Hourly Employees in Idaho?**

To calculate overtime for hourly employees in Idaho:

**Determine the regular rate of pay for the hourly employee:**This is typically the employee’s standard hourly wage.**Calculate the employee’s overtime rate:**Multiply the regular hourly rate by 1.5. For example, if the employee’s hourly rate is $18, the overtime rate would be $27 ($18 x 1.5).**Identify the overtime hours worked during the week:**All hours worked beyond 40 are considered overtime hours. If the employee worked a total of 48 hours in the week, the overtime hours would be eight (48 hours – 40 hours).**Calculate the overtime pay:**Multiply the overtime hours by the overtime rate. Using the example above, if the overtime rate is $27, the employee would receive $216 for the eight overtime hours ($27 x 8).

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

**How is Overtime Calculated for Salaried Employees in Idaho?**

To calculate overtime for salaried employees in Idaho:

**Determine the weekly salary of the non-exempt salaried employee:**For instance, if the employee earns $830 per week.**Calculate the regular hourly rate:**Divide the weekly salary by the number of hours the salary is intended to cover. If the weekly salary is based on a 40-hour workweek, the regular hourly rate would be $20.75 ($830 ÷ 40).**Calculate the overtime rate:**Multiply the hourly rate by 1.5. In this example, the overtime rate would be $31.13 ($20.75 x 1.5).- Identify the overtime hours worked during the week: Subtract 40 from the total hours worked to find the overtime hours. If the employee worked 50 hours, the overtime hours would be ten (50 – 40).
**Calculate the overtime pay:**Multiply the overtime hours by the overtime rate. For this example, if the overtime rate is $31.13, the employee would receive $311.30 ($31.13 x 10).

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

**Overtime for Complex Pay Structures in Idaho**

**How do you Calculate Overtime for Tipped Employees in Idaho?**

To calculate overtime for tipped employees in Idaho:

**Determine the regular hourly wage:**Begin with the employee’s cash wage. If the cash wage is less than $7.25, add tips to make the total compensation equal to or greater than the minimum wage. If the employee earns $3.35 in cash wage, the tip credit should be $3.90 to ensure the regular rate meets the minimum wage of $7.25 ($3.35 + $3.90).**Compute the overtime rate:**Multiply the hourly rate by 1.5 to get the overtime rate. If the employee’s regular hourly rate is $7.25, the overtime rate would be $10.88 ($7.25 x 1.5).**Identify the overtime hours:**All hours beyond 40 in a single workweek are counted as overtime. If an employee works 48 hours in a week, the overtime hours for that week would be eight (48 hours – 40 hours).**Calculate the overtime pay:**Multiply the overtime hours by the overtime rate to get the overtime compensation. If the employee worked an additional eight hours, and every extra hour is rated at $10.88, the total overtime compensation would be $87.04.

### How do you Calculate Overtime for Commission Employees in Idaho?

To calculate overtime for commission employees in Idaho:

**Calculate the total earnings of the week:**Add up all commissions and any base salary earned during the workweek. If the employee’s base pay is $630 and received $200 in commissions in a single workweek, the employee earned a total of $830 for that week.**Determine the regular hourly rate:**Divide the total weekly earnings by the number of hours worked. For example, if a commission employee earned $830 and worked 50 hours, the regular hourly rate would be $16.60 ($830 ÷ 50).**Calculate the overtime rate:**Multiply the regular hourly rate by 0.5. In this case, the overtime rate would be $8.30 ($16.60 x 0.5).**Identify the overtime hours:**Subtract 40 from the total hours worked to find the overtime hours. If the employee worked 50 hours, the overtime hours would be ten (50 – 40).**Calculate the overtime pay:**Multiply the overtime hours by the overtime rate. For example, if the overtime rate is $8.30, the employee would receive $83 for the ten overtime hours ($8.30 x 10).

### How do you Calculate Overtime for Piece Rates in Idaho?

To calculate overtime for piece rate employees in Idaho:

**Calculate the total weekly compensation:**Add up the total compensation the employee earned for all units produced during the workweek. For example, if the piece rate worker completed 1,600 units for $0.50 each, the employee will receive $800 (1,600 x $0.50).**Determine the regular hourly rate:**Divide the total weekly earnings by the total number of hours worked. For example, if the employee earned $800 and worked 50 hours, the regular hourly rate would be $16 ($800 ÷ 50).**Calculate the overtime rate:**Multiply the regular hourly rate by 0.5. In this example, the overtime rate would be $8 ($16 x 0.5).**Identify the overtime hours:**Subtract 40 from the total hours worked to find the overtime hours. If the employee worked 50 hours, the overtime hours would be ten (50 – 40).**Calculate the overtime pay:**Multiply the overtime hours by the overtime rate. Using the example above, if the overtime rate is $8, the employee would receive $80 for the ten overtime hours ($8 x 10).

**Additional Considerations for Idaho Overtime**

**What is the Statute of Limitations for Claiming Unpaid Overtime in Idaho?**

The statute of limitations for claiming unpaid overtime in Idaho is influenced by both federal and state legislation.

According to the FLSA, employees may submit a claim for unpaid overtime within two years of the violation. If an employee is found to have willfully violated the overtime provisions, the statute of limitations is extended to three years.

In addition to federal standards, Idaho has its Collection of Wages regulations (Idaho Code § 45-614). The state regulations allow employees to file claims for unpaid wages, including overtime, within two years of the violation. This aligns with the federal statute, allowing employees to pursue their claims.

Employees may file complaints with the U.S. Department of Labor’s Wage and Hour Division (WHD) or the Idaho Department of Labor.

**What are the Recordkeeping Requirements for Overtime Wage Compliance in Idaho?**

Idaho employers must follow federal and state recordkeeping laws to ensure compliance with overtime regulations. These requirements ensure transparency and accurate tracking of employees’ work hours and wages. The list of records an employer must maintain includes:

- Employee information
- Work hours and wages
- Payment details
- Dates and pay periods

Under the FLSA, employers must retain payroll records for at least three years and wage computation records for at least two years. Idaho law goes further, requiring employers to keep payroll records for at least four years.

If payroll checks remain unclaimed or uncashed, they are considered unclaimed property after one year. Under the Unclaimed Property Act, employers must:

- Make a good-faith effort to locate the employee and notify them of the unclaimed wages.
- If the owner cannot be found, report and transfer the funds to the Idaho State Treasurer’s Unclaimed Property Division.
- Comply with annual reporting requirements to ensure compliance with state laws.

**Learn more about Idaho Labor Laws through our detailed guide.**

**Important Cautionary Note**

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.