FLSA 29 U.S.C. § 207(a)
Authoritative Statutory Source
Overtime Multiplier (1.5×)
Mandatory 150% pay rate required for non-exempt employee hours worked exceeding 40 per week.
Detailed Definition & Statutory Context
Overtime Multiplier (1.5×) is governed by FLSA 29 U.S.C. § 207(a) standards across corporate payroll administration, statutory tax withholding, and general ledger labor accounting. Rigorous compliance with Overtime Multiplier (1.5×) prevents IRS Form 941 deposit penalties and FLSA wage-and-hour litigation.
Statutory Formula & Equation
Overtime Hourly Rate = FLSA Regular Rate × 1.5
General Ledger / Payroll Journal Entry Standard
Debit: Gross Payroll Expense / Employer Tax Expense
Credit: FICA Taxes Payable / Federal Income Tax Payable / Net Pay Cash
Credit: FICA Taxes Payable / Federal Income Tax Payable / Net Pay Cash
Common Operational Pitfalls
- Excluding non-discretionary bonuses from FLSA overtime regular-rate calculations.
- Failing to cap Social Security tax withholding once employee earnings exceed the $168,600 wage base.
- Misclassifying non-exempt hourly employees as exempt salaried workers.