How do you calculate overtime pay in Washington?

Specific rules and guidelines govern the calculation of overtime pay in Washington.

This article covers everything you need to know about overtime in Washington—from which laws apply, how to determine the regular rate of pay, and who is eligible or exempt, to how overtime is calculated for hourly, salaried, piece rate, and flat rate employees.

This Article Covers:

Understanding Overtime in Washington
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Washington
Overtime for Complex Pay Structures in Washington
Additional Considerations for Washington Overtime

Understanding Overtime in Washington

Which Overtime Laws Apply in Washington?

In Washington, both state law and the Fair Labor Standards Act (FLSA) are enforced. When there’s a conflict between these laws, employers must adhere to the one that benefits the employee most.

What is the Regular Rate of Pay in Washington?

Washington’s “regular rate of pay” includes most compensation made by the employer to the employee with some exceptions. To determine the regular rate, employees should divide the total compensation for the workweek by the total number of hours worked that week.

Discretionary bonuses, tips, service charges, reimbursed expenses, and paid time off are excluded from an employee’s regular hourly rate.

To accurately calculate the regular rate, employers must precisely track work hours by employees.

The regular rate in Washington cannot be below the minimum wage mandated by the Minimum Wage Requirements and Labor Standards, formerly known as the Minimum Wage Act.

How Do You Define a Workweek in Washington?

In Washington, a workweek can be defined as any seven consecutive days starting on the same day and time each week. If the employer does not specify a workweek, it defaults to the calendar week, from Sunday to Saturday.

How Much is Overtime Pay in Washington?

Overtime pay in Washington is at least 1.5 times the regular rate for hours worked over 40 in a seven-day workweek.

Regular Rate of Pay = Total Pay / Hours Worked

Overtime Pay = Regular Rate x 1.5

Given the Washington minimum wage currently set at $16.66, this would put the minimum overtime pay at: 

$16.66 x 1.5 = $24.99 per overtime hour

For certain cases, such as piece rate and flat rate employees, the overtime pay can be half hourly (0.5 times the hourly rate).

Additionally, employers and collective bargaining agreements can offer overtime pay that is more generous than the Washington overtime law.

Who is Eligible for Overtime Pay in Washington?

Generally, non-exempt employees in Washington are eligible for overtime pay when they work more than 40 hours in a seven-day workweek. Employers are required to pay overtime to eligible workers regardless of the employer’s size.

The eligible types of employees are listed below:

  • Most hourly, piece rate, and employees on commission.
  • Some salaried employees except for those on the exempt list.
  • Workers on jobs with prevailing wage rates in Washington.
  • Employees in the agriculture and dairy sectors.

Who is Exempt from Overtime Pay in Washington?

Washington law exempts certain high-level or specialized employees such as executives, administrators, professionals, and outside salespersons from overtime pay.

The human resources director has the authority to define these roles for employees under their oversight according to specific legal guidelines.

Here is the detailed list of exempt employees:

  • Individuals exempted under section 49.46.010 of the Revised Code of Washington (RCW) such as executives, administrators, professionals, and outside salespersons. Compensation or compensatory time off does not affect this exemption.
  • Employees who choose to compensate time off instead of overtime pay.
  • Seamen, whether working on American vessels or not.
  • Seasonal employees at agricultural fairs, with a limit of 14 working days a year.
  • Motion picture projectionists under a contract or collective bargaining agreement that regulates work hours and overtime pay.
  • Truck or bus drivers are governed by the Federal Motor Carrier Act, if their compensation system includes overtime pay equivalent to the state’s requirement.
  • Industries where federal law sets a different overtime payment structure. These federal rules apply even if the industry is not under federal jurisdiction in the state.
  • Air carrier employees under the Railway Labor Act who voluntarily trade shifts to manage their work hours.
  • Real estate professionals are licensed under Chapter 18.85 of the Revised Code of Washington (RCW) unless they work under an employee contract with a real estate firm.

Other overtime exemptions under federal law include:

  • Aircraft salespeople
  • Airline employees
  • Amusement/recreational employees in national parks/forests/Wildlife Refuge System
  • Announcers, news editors, and chief engineers at major radio or TV stations
  • Babysitters on a casual basis
  • Boat salespeople
  • Buyers of agricultural products (poultry, egg, milk, etc.)
  • Companions for the elderly
  • Country elevator workers (rural)
  • Criminal investigators receiving availability pay
  • Domestic employees who live in
  • Domestic workers
  • Employees in national parks, amusement, or recreation facilities
  • Farm implement salespeople
  • Federal criminal investigators
  • Firefighters working in small (less than 5 firefighters) public fire departments
  • Fishing industry workers
  • Forestry employees of small (less than 9 employees) firms
  • Fruit & vegetable transportation employees
  • Government employees
  • Highly compensated employees earning at least $107,432 per year
  • Homeworkers making wreaths
  • Houseparents in non-profit educational institutions
  • Independent contractors (under specific conditions)
  • IT personnel earning at least $27.63 per hour
  • Livestock auction workers
  • Local delivery drivers and driver’s helpers
  • Lumber operations employees of small (less than 9 employees) firms
  • Motion picture theater employees
  • Newspaper delivery workers
  • Newspaper employees of limited circulation newspapers
  • Police officers working in small (less than 5 officers) public police departments
  • Radio station employees in small markets
  • Railroad employees
  • Seamen on American vessels
  • Seamen on other than American vessels
  • Sugar processing employees
  • Switchboard operators
  • Taxicab drivers
  • Television station employees in small markets
  • Truck and trailer salespeople
  • Volunteers in religious, non-profit, charitable, or educational organizations
  • Workers in maple syrup production
  • Youth employed as actors or performers
  • Youth employed by their parents

Can Employers Mandate Overtime Work in Washington?

Yes, employers in Washington can mandate overtime work, except for certain healthcare facility employees such as:

  • Licensed Practical Nurses (LPNs).
  • Registered Nurses (RNs).
  • Surgical Technologist.
  • Diagnostic Radiologic Technologist.
  • Cardiovascular Invasive Specialist.
  • Respiratory Care Practitioner.
  • Certified Nursing Assistants.

If employers in Washington do mandate overtime work, employees must be compensated according to state and federal overtime laws.

Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Washington

How Do You Calculate Overtime for Hourly Employees in Washington?

To understand how to calculate overtime for hourly employees in Washington, let’s take a look at this example:

John is an hourly employee and earns $18 per hour. He has worked 47 hours in a specific week and is eligible to earn overtime pay. To determine his overtime wages, we can use the following steps:

  • Determine the regular rate of pay

From the example, John’s regular hourly rate would follow his hourly wage rate of $18.00 per hour.

  • Calculate the overtime rate

Overtime pay is calculated at 1.5 times the regular rate of pay. Therefore, to determine the overtime rate, multiply John’s regular rate of $18.00 by 1.5. This gives an overtime rate of $27.00 per hour.

  • Identify overtime hours

In this case, John worked 47 hours, therefore, John worked 7 overtime hours (47 hours – 40 hours = 7 overtime hours).

  • Calculate overtime pay

To calculate the overtime pay, multiply the overtime rate of $27.00 by the 7 overtime hours worked. This results in $189.00 in overtime pay.

The employer must pay 1.5 times the regular rate for hours over 40. The regular rate changes if the employee gets extra compensation or incentives during the week.

How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Washington?

To calculate overtime for employees with two or more hourly rates in Washington, you’ll need to find the total earnings during the workweek and divide that by the hours worked.

Let’s take for example an employee who earned $1550.00 during the week and worked 46 hours. You can calculate their overtime pay by following these steps:

  • Determine the regular pay rate

To get the employee’s regular pay rate, divide the weekly earnings by the total hours worked: ($1550.00 ÷ 46 hours = $33.70).

  • Calculate the overtime rate

Multiply the regular pay rate by 1.5 to get the overtime rate. Here, the regular rate is $33.70, the overtime rate would be: ($33.70 x 1.5 = $50.55 per overtime hour).

  • Identify the overtime hours

Since the employee worked 46 hours, their overtime hours would be: (46 hours – 40 hours = 6 overtime hours).

  • Calculate the overtime pay

Multiply the overtime rate by the overtime hours. In this example, the overtime pay would be: ($50.55 x 6 overtime hours = $303.30 )

How Do You Calculate Overtime for Salaried Employees in Washington?

To calculate overtime, salaried employees in Washington can reach mutual agreements with employers to define the specific number of hours per week that the salary compensates.

If no agreement is made, it defaults to 40 hours. Any hours worked beyond that are counted as overtime.

If a salary isn’t paid weekly, employees should figure out the weekly amount to calculate the regular rate and overtime. Here’s how to do it:

  • For a half-month salary: multiply by 24, then divide by 52 to get the weekly equivalent.
  • For a monthly salary: multiply by 12, then divide by 52 to get the weekly equivalent.

Employees can determine the regular rate by dividing the weekly salary by the hours the salary is supposed to cover.

Let us take examples of two salary agreements that cover 40 and 50 hours per week.

Normal Agreement (up to 40 hours)

Employee and employer agree that the salary is for 40 hours per week. In this case, overtime will be applicable for hours above 40. This is the default agreement.

For this example, the employee earns $760.00 for a 40-hour workweek.

  • Determine the regular rate of pay

The regular rate of pay will be calculated as follows:

Regular Rate of Pay = $760.00 ÷ 40 = $19 per hour

  • Calculate the overtime rate

Multiply the regular pay rate by 1.5. The employee’s overtime rate would be: ($19 x 1.5 = $28.50 per overtime hour).

  • Identify overtime hours

Employee worked 49 hours in a week, the overtime hours are nine: (49 hours – 40 hours = 9 overtime hours).

  • Calculate overtime pay

Multiply the overtime hours by the overtime rate. From the example, the overtime pay would be: (9 hours x $28.50 = $256.50 overtime pay).

Different Agreement (more than 40 hours)

Employee and employer agree that the salary is for 50 hours per week. In this case, overtime will be applicable for hours above 50.

For this example, the employee earns $1,100.00 for a 50-hour workweek.

  • Determine the regular rate of pay

The regular rate of pay will be calculated as follows:

Regular Rate of Pay = $1,100.00 ÷ 50 = $22 per hour

  • Calculate the overtime rate

The employees should multiply the regular pay rate by 1.5. The employee’s overtime rate would be: ($22 x 1.5 = $33.00 per overtime hour).

  • Identify overtime hours

The employee worked 55 hours a week, the overtime hours are five (55 hours – 50 hours = 5 overtime hours).

  • Calculate overtime pay

The employees should multiply the overtime hours by the overtime rate. From the example, the overtime pay would be: (5 hours x $33.00 = $165.00).

Overtime for Complex Pay Structures in Washington

How Do You Calculate Overtime Pay for Piece Rate Employees in Washington?

In Washington, there are two ways to calculate overtime pay for piece-rate employees.

The first way to calculate overtime for piece rate employees:
Piece rate employees in Washington are paid a fixed amount for each unit of work completed. For hours worked over 40 in a week, the employee gets an extra 0.5 times their regular rate per hour, in addition to their full piece rate earnings.

To understand this further, let’s consider an employee earning a regular pay rate of $20.00 per hour, who worked 49 hours for the week.

  • Determine the regular rate of pay

To find their regular pay rate, divide total weekly earnings by total hours worked.

  • Calculate the overtime rate

Multiply the regular pay rate by 0.5 to get the overtime rate. If the regular pay is $20.00, the overtime rate would be: ($20.00 x 0.5 = $10.00).

  • Identify overtime hours

If the employee worked 49 hours, the overtime hours would be nine: (49 hours – 40 hours = 9 overtime hours).

  • Calculate overtime pay

Multiply the overtime rate by the overtime hours. In this example, the overtime pay would be ($10.00 x 9 = $90.00 ).

The second way to calculate overtime for piece rate employees: 

If agreed beforehand, overtime can be paid at 1.5 times the piece rate for each piece produced during overtime hours. The piece rate must stay the same as regular hours and ensure at least minimum wage.

For example, if the regular piece rate is $20, the overtime rate would be ($20.00 × 1.5 = $30.00 per overtime hour).

For 9 overtime pieces, the total overtime pay would be ($30 × 9 = $270).

How Do You Calculate Overtime for Flat Rate Employees in Washington?

To calculate overtime for flat-rate employees in Washington, employees should divide their weekly earnings by the hours worked. 

Flat rate employees in Washington are paid a fixed amount for completing a specific task. For example, a programmer might be paid a flat rate of two hours’ pay to resolve a defect, regardless of whether the task takes one, two, or three hours.

To understand this further, let’s consider an employee earning a regular pay rate of $900.00 per hour, who worked 45 hours for the week.

Here’s how to calculate overtime pay for flat-rate employees in Washington:

  • Determine the regular rate of pay

Divide weekly earnings by the total hours worked to get the regular rate of pay: ($900 ÷ 45 = $20.00 per hour).

  • Calculate the overtime rate

Multiply the regular rate by 0.5 to get the overtime rate. If the regular rate is $20.00, the overtime rate would be: ($20.00 x 0.5 = $10.00 per overtime hour)

  • Identify overtime hours

The employee worked 45 hours, overtime hours would be five (45 – 40 = 5 overtime hours).

  • Calculate overtime pay

Multiply the overtime rate by the overtime hours. In this example, the overtime pay would be ($10.00 x 5 = $50.00).

Additional Considerations for Washington Overtime

Can an Employee Choose Compensatory Time Instead of Overtime in Washington?

Only public employees can choose compensatory time instead of overtime pay in Washington. This is known as ‘comp time’, ‘time off’, or ‘exchange time.’ Employers must credit this time off at a rate of at least 1.5 hours for each hour of overtime worked.

Employees can request compensatory or exchange time, but they cannot be forced to take it.

Private employers cannot offer compensatory time instead of overtime and are not allowed to make agreements for comp time with their employees.

Are Paid Sick Leave and Time Off Included in Overtime Calculation?

Paid sick leaves and other time off are not included in the overtime calculations in Washington.

When employees take paid sick leave during a workweek, those hours are not considered “hours worked” and therefore do not count towards the 40-hour overtime threshold or overtime pay calculations.

Similarly, other paid time off, such as vacation pay, holiday pay, and “PTO,” are excluded from the overtime calculation. The regular rate for overtime is calculated based solely on the actual hours worked, not on any paid time off.

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.