What is the overtime rate for hourly employees?

In Indiana, employers must pay overtime pay at a rate of one and one-half times the employee’s regular rate of pay for all hours worked in excess of forty in a single workweek. This means that if an hourly employee works more than 40 hours in a workweek, they must be paid at their regular rate of pay for the regular hours and an additional one and one-half times their regular rate for any hours over 40. For example, if an hourly employee makes $10/hour and works 45 hours in one workweek, they would be paid $400 for the first 40 hours and $150 for the five overtime hours; the total for the workweek would be $550. Overtime pay must be paid no later than the next pay period and not later than 30 days after the additional hours were worked. In addition, employers may not make deductions from employees’ wages for any overtime pay. Employers may choose to pay overtime in a lump sum, but in this case, the payment must be equal to or greater than the employee’s regular rate plus one and one-half times the regular rate for all applicable hours worked. In addition, employees must be paid overtime for each hour worked, regardless of whether the overtime was approved by the employer. It is important to note that there are some exceptions to these overtime rules. Certain jobs, such as agricultural workers and certain professionals, are exempt from overtime pay regulations. Employers should contact the Indiana Department of Labor for specific information on which employees are not covered by state or federal overtime laws.

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What is the overtime rate for hourly employees?

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