![\"Overtime](\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2024\/06\/Overtime-cover.jpg\")
<\/figure>\n<\/div>\n\n\nTrack employee overtime hours <\/h2>\n\n\n\n
To calculate overtime compensation, you\u2019ll need to track the extra hours<\/strong> your employees work.<\/p>\n\n\n\n You can use various methods to track employee work hours, such as pen and paper<\/a> or spreadsheets<\/a>. <\/p>\n\n\n\n However, such methods are WAY outdated and time-consuming. <\/p>\n\n\n\n Luckily, there\u2019s a modern and efficient time tracking solution \u2014 Clockify<\/a> time tracker. <\/p>\n\n\n\n With Clockify, your employees can:<\/p>\n\n\n\n To track time using Timer, employees must enter what they\u2019re working on, select the appropriate project, and click the Start button. After finishing a task, they need to click the Stop button. <\/p>\n\n\n Simplify time tracking now<\/a><\/p>\n\n\n\n Once your employees are done tracking time spent on tasks, all their time entries are automatically stored in Clockify.<\/p>\n\n\n\n For easier overtime tracking, you can set your employees\u2019 daily capacity in Clockify \u2014 e.g., 8 hours. The hours they track beyond that will automatically be counted as overtime<\/em>.<\/p>\n\n\n To check the additional or overtime hours your employees tracked, go to Clockify\u2019s Attendance report. <\/p>\n\n\n\n There, you can see their overtime<\/a>, as well as their start and end times, breaks, time off, and more.<\/p>\n\n\n Get Clockify now<\/a><\/p>\n\n\n\n What\u2019s great about the Clockify Overtime tracker<\/a> is that it\u2019s simple to use yet filled with multiple options for precise overtime tracking. <\/p>\n\n\n\n \ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n If you want to learn more about overtime, including mandatory overtime and overtime taxation, make sure you read the blog posts below:<\/p>\n\n\n\n Regular hourly rate<\/strong> is the amount you usually pay your employees for each hour they work. <\/p>\n\n\n\n For example, if you pay your employee $15 for every hour worked, that means their regular hourly rate is $15.<\/p>\n\n\n\n Employees have different hourly rates, depending on their work position, for instance.<\/p>\n\n\n\n To set different rates for your employees, you can use Clockify\u2019s Team feature<\/a>. There, you can:<\/p>\n\n\n\n This way, you\u2019ll reduce any possibility of mixing up hourly rates, underpaying, or even overpaying your employees. <\/p>\n\n\n\n Manage hourly rates with Clockify<\/a><\/p>\n\n\n\n After defining regular hourly rates for your employees, you can move on to calculating their overtime rates.<\/p>\n\n\n\n As the Fair Labor Standards Act (FLSA)<\/a> states, non-exempt employees must be paid 1.5 times their regular rate of pay for all hours worked above 40 <\/strong>per week.<\/p>\n\n\n\n So, to calculate overtime rate, you can use the formula below:<\/p>\n\n\n\n Regular hourly rate x 1.5 = Overtime rate <\/em><\/p>\n\n\n\n Let\u2019s go back to the example above and say that you want to calculate the overtime rate for an employee whose hourly wage is $15. <\/p>\n\n\n\n Following the abovementioned formula, the calculation goes like this:<\/p>\n\n\n\n Regular hourly rate ($15) x 1.5 = Overtime rate of <\/em>$22.5<\/em><\/strong><\/p>\n\n\n\n In other words, for each extra hour this employee works, you\u2019ll need to pay them $22.5. <\/p>\n\n\n\n \ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n To find out whether working overtime without pay is illegal and get answers to some other concerns about working off-clock, read our blog post:<\/p>\n\n\n\n When you track employee time with Clockify, it\u2019s easy to find out how many additional hours they worked in total.<\/p>\n\n\n\n You can go to Clockify\u2019s Attendance report and see employees\u2019 total overtime hours there.<\/p>\n\n\n\n Alternatively, you can utilize another interesting Clockify option \u2014 tags<\/a>.<\/p>\n\n\n\n To put it precisely, employees can attach an \u201covertime\u201d tag to an entry. <\/p>\n\n\n This way, you can use Clockify\u2019s Reports feature<\/a> and see information about your employees\u2019 overtime work.<\/p>\n\n\n\n For instance, to see total overtime for a particular team member, you can:<\/p>\n\n\n\n You can also choose whether to see the report for the last week, the past two weeks, this month, and more.<\/p>\n\n\n\n\n Time tracking software used by millions. Clockify is a time tracker and timesheet app that lets you track work hours across projects.<\/p>\n\n Once you see the total extra time your employees tracked, you can finally calculate their overtime compensation. <\/p>\n\n\n\n \ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n For more information about overtime pay, including how you can calculate it with the help of overtime calculators, check the resource below:<\/p>\n\n\n\n The last thing you need to do to determine your employees\u2019 overtime pay is multiply their overtime rate by their total overtime hours. <\/p>\n\n\n\n The calculation for this is simple, and it goes as follows:<\/p>\n\n\n\n Overtime rate x Total overtime hours = Overtime pay<\/em><\/p>\n\n\n\n For simplicity\u2019s sake, we\u2019ll say you want to calculate overtime compensation for an employee whose overtime rate is $22.5. We\u2019ll also say they worked 6 extra hours.<\/p>\n\n\n\n An employee\u2019s overtime rate of $22.5 x 6 Overtime hours worked = Overtime pay of $135 <\/em><\/p>\n\n\n\n Now that you know how to compute overtime pay, processing payroll will definitely be a lot easier. <\/p>\n\n\n\n \ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n In case you need more details regarding payroll calculation, don\u2019t forget to read our step-by-step guide: <\/p>\n\n\n\n\n
![\"Tracking](\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2024\/06\/Tracking-time-in-Clockify.jpg\"){kind=tracking}
![\"Clockify](\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2024\/06\/Clockify-daily-capacity.jpeg\")
![\"Clockify](\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2024\/06\/Clockify-Attendance-report.png\")
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Define employees\u2019 regular hourly rates <\/h2>\n\n\n\n
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![\"Team](\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2024\/06\/Team-hourly-rates-in-Clockify.png\")
Calculate employee overtime rates <\/h2>\n\n\n\n
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Determine employee total overtime hours <\/h2>\n\n\n\n
![\"Overtime](\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2024\/06\/Overtime-tag-in-Clockify.png\")
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![\"Clockify](\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2024\/06\/Clockify-Summary-report.png\")
![\"Illustration\"](\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/landing-3@2x.png)
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Calculate employee overtime pay <\/h2>\n\n\n\n