Overtime
What Is Included in the Regular Rate of Pay?
Last updated September 2026 · Workly USA editorial team
The regular rate is the hourly rate used to calculate many overtime premiums. It can be different from the base rate printed in a job offer.
Common inclusions
Nondiscretionary bonuses, shift differentials, and some commissions may be included in the regular rate. The exact treatment depends on the payment and the applicable law.
Common exclusions
Certain genuine gifts, expense reimbursements, holiday gifts, and premium pay for hours outside the employee's normal schedule may be excluded when legal requirements are met. Labels alone do not decide the result.
A practical example
If a qualifying bonus is allocated over a work period, it may raise the regular rate for those weeks and create an additional overtime adjustment. Payroll should explain how it handles this calculation.
Frequently asked questions
Is the regular rate always my hourly wage?
No. It can include certain additional compensation, especially nondiscretionary payments.
Do all bonuses affect overtime?
No. Treatment depends on whether the bonus is discretionary, how it is calculated, and applicable law.
Where can I verify the rule?
Start with U.S. Department of Labor guidance and your state labor department.
Put this into practice
Use our free browser-based calculator to explore your own numbers. Results are estimates for planning.
Open the Overtime Calculator →This article is general educational information for American workers, not tax, legal, payroll, or financial advice. Rules vary by state and employer. Verify current requirements with your state labor department or a qualified professional.