Calculating overtime pay in Kentucky is essential to ensure fair compensation for the employees.
This guide breaks down the calculations step-by-step, ensuring employees know exactly how much overtime pay is owed. Let’s dive into the essentials of calculating overtime pay in the “Bluegrass State”.
This Article Covers:
Understanding Overtime in Kentucky
- Which Overtime Laws Apply in Kentucky?
- How do you Define a Workweek in Kentucky?
- How Much is Overtime Pay in Kentucky?
- Who is Eligible for Overtime Pay in Kentucky?
- Who is Exempt from Overtime Pay in Kentucky?
Overtime for Hourly Rate, Hourly Rate with Bonuses, and Salaried Employees in Kentucky
- How do you Calculate Overtime for Hourly Employees in Kentucky?
- How do you Calculate Overtime for Hourly Employees with Bonuses in Kentucky?
- How do you Calculate Overtime for Salaried Employees in Kentucky?
Overtime for Complex Pay Structures in Kentucky
- How do you Calculate Overtime Pay for Piece Rate Employees in Kentucky?
- How do you Calculate Overtime for Flat Rate Employees in Kentucky?
Additional Considerations for Kentucky Overtime
- Can Employers Mandate Overtime Work in Kentucky?
- What are the Recordkeeping Requirements for Overtime Calculation in Kentucky?
Understanding Overtime in Kentucky
Which Overtime Laws Apply in Kentucky?
Kentucky’s overtime regulations apply in the state. These are consistent with the Fair Labor Standards Act (FLSA) overtime guidelines which mandate overtime for work beyond 40 hours in a workweek for non-exempt employees.
Employers cannot average hours worked over multiple weeks for overtime calculations; every workweek is treated individually.
Employees in Kentucky must be compensated for additional hours at a rate no less than 1.5 times their standard hourly wage.
Additionally, In Kentucky, if an employee works seven days in a row, they gets paid 1.5 times their usual rate for hours worked on the seventh day, with some exceptions.
How do you Define a Workweek in Kentucky?
A workweek in Kentucky can be defined as a calendar week or any seven consecutive days chosen by the employer. An employer must set a workweek as a fixed schedule, ensuring no attempt to avoid overtime pay.
How Much is Overtime Pay in Kentucky?
Generally, in Kentucky, any hours worked beyond a 40-hour workweek must be compensated at a minimum of 1.5 times the employee’s standard rate of pay.
For example, if an employee earns $11.00 per hour and works 43 hours in a workweek, they should be paid at least $16.50 per hour (1.5 times $11.00) for each hour worked beyond the 40.
Who is Eligible for Overtime Pay in Kentucky?
Under Kentucky overtime laws, non-exempt employees are generally eligible for overtime pay.
Additionally, employees in non-exempt sectors earning less than $684 per week (or $35,568 annually) qualify for overtime compensation.
However, overtime eligibility also depends on the employee’s job duties and the type of business.
Who is Exempt from Overtime Pay in Kentucky?
Kentucky overtime law exempts white-collar and some selected employees from earning overtime pay.
The white-collar employees earn at least $684 per week and fall into one of four categories: administrative, executive, professional, or outside sales.
Similarly, selected groups of exempt employees include:
- Employees of retail stores engaged in selling, purchasing, and distributing goods.
- Employees of restaurant, hotel, and motel operations.
- Employees under the Secretary of Transportation’s regulation, per the Motor Carrier Act, 1935.
- Salespersons, parts persons, or mechanics selling/servicing automobiles, trucks, or farm implements who nonmanufacturing establishments employ.
- Salespersons selling trailers, boats, or aircraft that nonmanufacturing establishments employ.
- Taxi drivers.
- Employees providing 24-hour care in parental roles at licensed private nonprofit child-caring facilities.
- Individuals providing in-home companionship services for sick, convalescing, or elderly persons employed by third-party employers or agencies.
Overtime for Hourly Rate, Hourly Rate with Bonuses, and Salaried Employees in Kentucky
How do you Calculate Overtime for Hourly Employees in Kentucky?
To calculate overtime for hourly employees in Kentucky:
- Determine the regular rate of pay: If an employee earns $12.00 per hour, that’s their regular rate of pay.
- Calculate the overtime rate: To calculate the overtime rate, multiply the regular pay rate by 1.5. Here, the overtime rate would be $18.00 per hour ($12 x 1.5).
- Identify the overtime hours: The employee worked 42 hours in a workweek, so the overtime hours are two (42 – 40).
- Calculate overtime pay: Multiply the number of overtime hours by the overtime rate. In the example, the overtime pay would be $36.00 (2 hours x $18.00 per hour).
How do you Calculate Overtime for Hourly Employees with Bonuses in Kentucky?
To calculate the overtime pay for hourly employees with bonuses in Kentucky, add up the total earnings for the workweek including the bonuses and then divide by the total hours worked.
- Determine total earnings for the week: The total earnings for the week are calculated by adding the weekly pay and bonuses. For instance, if an employee earns $600.00 per week and receives a $50.00 bonus, their total earnings for the week would be $650.00 ($600.00 + $50.00).
- Calculate the regular pay rate: The employees should divide the total weekly earnings by the hours worked. In this case, the regular pay rate is $14.13 ($650.00 / 46).
- Calculate the overtime rate: The employees should multiply the regular pay rate by 1.5 to get the overtime rate. In this case, the regular rate is $14.13, so the overtime rate would be $21.19 ($14.13 x 1.5).
- Identify the overtime hours: The employee worked 43 hours total, resulting in three overtime hours (43 – 40).
- Calculate the overtime pay: The employee’s overtime rate is $21.19 and should receive overtime pay of $63.58 ($21.19 x 3) for three overtime hours.
How do you Calculate Overtime for Salaried Employees in Kentucky?
To calculate overtime pay for salaried employees in Kentucky:
- Determine the employee’s weekly salary: Let us assume an employee receives $600.00 as their weekly salary. When a salary is not paid weekly, employees must convert it to a weekly salary amount. To do this:
- For a salary paid twice a month, employees should multiply the amount by 24 and divide by 52 to find the weekly equivalent.
- For a monthly salary, employees should multiply by 12 and divide by 52.
- Calculate the regular pay rate: If an employee with a $600 weekly salary works 50 hours in one week, the regular rate is $12.00 per hour ( $600.00 / 50).
- Calculate the overtime rate: The salaried employee should multiply the regular pay by 0.5 to get the overtime rate. In this example, the regular rate is $12.00, so the overtime rate would be $6.00 ($12.00 x 0.5).
- Identify the overtime hours: The employee worked 50 hours, resulting in ten overtime hours (50 – 40).
- Calculate the overtime pay: The employee’s overtime rate is $6.00. Therefore, the employee’s overtime pay for the week is $60 ($6 x 10) for ten overtime hours.
Overtime for Complex Pay Structures in Kentucky
How do you Calculate Overtime Pay for Piece Rate Employees in Kentucky?
To calculate overtime pay for Piece Rate Employees or “pieceworkers” in Kentucky:
- Determine the cash wages paid: The piece-rate employee received $705.00 for the week and worked 47 hours.
- Determine the regular pay rate: The employee should calculate the regular pay rate by dividing the weekly earnings by the number of hours worked ($705.00 / 47 = $15.00).
- Calculate the overtime rate: The employee should multiply the regular pay rate by 0.5 to get the overtime rate. The regular pay is $15.00, and the overtime rate is $7.50 ($15.00 x 0.5).
- Identify the overtime hours: If the employee worked 47 hours during the week, the overtime hours would be seven (47 – 40).
- Calculate the overtime pay: Lastly, the employee should multiply the overtime rate by the overtime hours. In this example, the overtime pay for the week would be $52.50 ($7.50 x 7).
How do you Calculate Overtime for Flat Rate Employees in Kentucky?
To calculate overtime for flat-rate employees in Kentucky:
- Determine the cash wages paid: The flat-rate employee received $540.00 for the week and worked 48 hours.
- Compute the regular pay rate: Find the regular hourly rate by dividing weekly earnings by the total hours worked. ($540.00 ÷ 48 hours = $11.25).
- Calculate the overtime rate: Multiply the regular rate by 0.5 to determine the overtime rate. Here, the regular rate is $11.25, so the overtime rate is $5.62 ($11.25 × 0.5).
- Identify the overtime hours: The employee worked 48 hours, so the overtime hours are eight (48 – 40 = 8).
- Calculate the overtime pay: Multiply the overtime rate by the number of overtime hours. In this scenario, the overtime pay for eight hours is $44.96 ($5.62 × 8).
Additional Considerations for Kentucky Overtime
Can Employers Mandate Overtime Work in Kentucky?
In Kentucky, employers can mandate overtime for employees during a workweek. This practice is permissible under overtime laws as long as the workers receive appropriate overtime pay, which is one-and-a-half times their standard hourly rate.
Under Kentucky’s 7th Day Overtime Law, if an employee works for seven consecutive days within a workweek, they are eligible to earn overtime pay at 1.5 times their regular hourly rate for all hours worked on the seventh day.
What are the Recordkeeping Requirements for Overtime Calculation in Kentucky?
In Kentucky, employers are required to keep detailed records of employees’ work hours and wage payments to calculate overtime accurately.
Importantly, these records must be kept for at least one year after the date of entry and they include:
- Employee Details: Full name, Social Security number, home address, date of birth (if under 18), gender, and occupation.
- Work Schedules and Hours: The time and day the workweek starts, along with the hours worked each day and week.
- Payroll Information: Regular pay rate, total earnings, overtime pay, additions or deductions from wages, and total wages each pay period.
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.