RRP Calculator
Regular Rate of Pay Calculator
Regular Rate of Pay (or in short RRP) is a US federal payroll law concept that acts as the basis for calculating overtime pay for non-exempt employees. It came into effect under the Fair Labor Standards Act (FLSA) and states that overtime pay exceeding 40 hours in a workweek is permitted at a rate of 1.5 times their regular rate. With our free calculator, you can easily calculate the correct RRP.
Want to easily generate paystubs?
Instantly create compliant and accurate salary slips using our free payslip generator, or fully automate your payroll with our premium payroll software.
Step-by-Step Guide
How to Use the RRP Calculator
Simplifly the correct regular rate of pay calculations in the US. Follow these four simple steps to correctly calculate the regular rate of pay:
Enter Pay Rates and Hours
Enter the hourly pay rate the employee worked for the week and specify the number of hours for each pay rate.
Add Multiple Rates if Necessary
If applicable, enter all the employees' different pay rates within the same workweek. Simply click on 'Add Rate' to create an additional entry.
Include Nondiscretionary Bonuses
Enter any further bonuses received during the week, such as performance incentives, commissions, or attendance bonuses. Specify if this bonus is paid for a specific time period.
Calculate and Review Your Results
Click 'Calculate' to see a detailed result, which includes the total straight-time pay, total hours worked, regular rate of pay, total overtime hours, the overtime premium pay, and the total gross pay for the week.
Automise your payroll. Start using PayrollRabbit today.
Instantly compliant. Highly accurate. On every hop.
Frequently asked questions
Visit our full FAQ page or get in touch with Frederic, Co-Founder of PayrollRabbit.
- 'Regular rate of pay' is the average hourly salary a US employee earns in a workweek. It is used as the basis for calculating overtime and includes more than just the base hourly wage, such as piecework earnings, commissions, and nondiscretionary bonuses.
- The regular rate of pay is calculated by dividing the employee's total weekly pay (but excluding statutory items like overtime premiums) by the total number of hours worked. For example, if an employee earns 840 dollars in a 40-hour workweek, their regular rate of pay is 21 dollars per hour (840 dollars ÷ 40 hours).
- Payments, which must be included, are the employee's base pay plus any other form of compensation earned, such as attendance bonuses, commissions, shift differentials, piece-rate earnings, and other remuneration linked to hours worked or performance.
- Payments, which are excluded from regular pay, are gifts, paid holidays, sick days, and reasonable reimbursements for expenses paid by the employee, such as travel expenses.
- Yes, employers are required not only to keep employees' overtime records, but to maintain accurate daily time records that indicate the start and finish times of each work session, the total number of hours worked each day and pay period, meal times, and split shift intervals; traceable back to up to four years. The '13831. Recordkeeping' chapter refers to labor contractors, who are required to accurately record daily time for each work site, including compensable travel time, and store it for no less than three years. The '13831. Recordkeeping' chapter mandates accurate time records for all work, including overtime.
- Yes, in this case, the non-exempt employee has 12 hours of overtime and 1 hour of double-time hours this week. In other words, the employee receives regular pay for the 8 hours from Monday to Friday. Yet, on Saturday, they receive an overtime rate of 1.5 times pay for the first 12 hours worked and a double-time rate of 2 times pay for the last hour.
- Under the California case law, the 'suffer or permit' rule means an employer knew or should have known about all work an employee performed, whether authorized or not. This standard ensures that both parties, the employees and the employer, act with good faith. In other words, an employee is not allowed to deliberately hide unauthorized overtime from the employer and then later demand payment for it. If an employee does so, the employer can choose to discipline them. In contrast, the employer must maintain accurate time records and pay for work, even for unauthorized ones.
What is the 'regular rate of pay'?
How is the regular rate of pay calculated?
What payments must be included in the regular rate?
What payments are excluded from the regular rate?
Are employers obligated to keep employees’ overtime records? Does '13831. Recordkeeping' chapter apply to overtime?
If an employee works 8 hours a day from Monday to Friday, then 13 hours on Saturday, does this mean the employee has 13 overtime hours (12 hours x 1.5 their regular rate and 1 hour x double rate)?
When it comes to California overtime laws, what does the 'suffer and permit' rule mean for employees and employers?
Disclaimer: We have taken great care and gave our best effort to ensure the accuracy of the information provided by this Regular Rate of Pay Calculator. However, PayrollRabbit does not accept responsibility for any errors or omissions and makes no guarantees or warranties regarding the correctness of the results generated by this free tool. By using this tool, you agree not to hold PayrollRabbit liable for any consequences, issues, or damages arising from any inaccuracies in the results produced. We recommend double-checking all results and contact us if you have any questions, feedback or concerns.