How is Overtime Pay Calculated in Oklahoma?

Posted by: Chris

There are no state laws in Oklahoma that govern overtime pay, which means workers in this state are covered by the federal overtime law. The U.S. Department of Labor (DOL) recently finalized changes to the federal overtime law. These changes, which took effect on January 1, 2020, may make thousands of workers in Oklahoma eligible for overtime pay for the first time. 

If you are newly eligible, it’s important to understand how overtime pay is calculated to ensure you are fully compensated by your employer. Here’s what you need to know about calculating overtime pay in Oklahoma:

Overtime Pay in Oklahoma

Non-exempt employees are entitled to overtime pay for any hours worked over 40 per workweek. Employers must pay these employees overtime pay that is equal to at least 1.5 times the employee’s regular rate of pay.

For example, let’s say a non-exempt employee works 45 hours in one workweek. The employee’s regular rate of pay is $20 per hour. This employee is entitled to overtime pay for the 5 hours of overtime he worked during this workweek. His overtime rate is $20 x 1.5, or $30, which means he would earn $150 in overtime pay.

Defining “Regular Rate of Pay”

You cannot calculate overtime pay without knowing your regular rate of pay. Many people believe that an employee’s regular rate of pay is simply their hourly wage, but that’s not necessarily true. Employers are required to consider all forms of compensation paid to the employee—not just their hourly wage—when calculating their regular rate of pay. 

The DOL recently updated the definition of regular rate of pay to clarify what types of compensation should and should not be included in this calculation. Forms of compensation that should not be considered include: 

  • Cost of office snacks, coffee, and other foods and beverages provided in the workplace
  • Reimbursement for cell phones, travel, licensing exams, and other fees
  • Payments made to compensate employees for unused paid time off or sick days
  • Cost of providing employees with access to certain benefits, including parking, fitness centers, onsite specialists, and wellness programs

Some forms of compensation that should be considered when calculating an employee’s regular pay rate include on-call pay and sales commissions. 

Use this information as a guide to help you determine your regular and overtime rate of pay.

Are you not being compensated for working overtime?  If so, seek legal representation from the aggressive attorneys at Armstrong & Vaught, P.L.C. right away. Let our experienced attorneys take legal action against your employer to ensure you are fully compensated for your work. Call us now at 918-582-2500, toll free at (800) 722-8880, or contact us online for a free consultation with a skilled attorney.