Commission-Adjusted Overtime Calculator
Standard Formula
Commission Rate Boost = Commission ÷ Total Hours; Premium = Boost × 0.5 × OT Hours
Non-exempt employees receiving commissions must receive overtime premium pay on their earned commission payments.
How Commission-Adjusted Overtime Calculator Works?
The Commission-Adjusted Overtime Calculator works by dividing weekly commissions by total hours and paying 0.5× of that hourly amount for each overtime hour.
1Enter the hourly wage
Type the base wage, $18.00 by default.
2Enter total hours
Add all hours worked in the week, 48 by default.
3Enter commissions earned
Type the commission for that workweek, $600.00 by default.
4Read compliant pay
$600.00 ÷ 48 = $12.50 per hour. $12.50 × 0.5 × 8 adds $50.00, for $1,586.00 total and a $30.50 regular rate.
Commission-Adjusted Overtime Calculator Formula
The Commission-Adjusted Overtime Calculator formula is Commission Premium = (Commission ÷ Total Hours) × 0.5 × Overtime Hours.
Commission per hour
Commission Rate = Commission ÷ Total Hours
Adjusted regular rate
Regular Rate = Hourly Wage + Commission Rate
Commission overtime due
Premium = Commission Rate × 0.5 × OT Hours
- Commission
- Commission earned for the workweek.
- Total Hours
- All hours worked that week.
- Premium
- Extra overtime owed on the commission.
Worked example: car sales associate
$15.00 per hour, 46 hours, $920.00 in commissions.
Commission Rate = $920.00 ÷ 46 = $20.00. Premium = $20.00 × 0.5 × 6 = $60.00.
Commission-Adjusted Overtime Calculator Conversion Table
The Commission-Adjusted Overtime Calculator conversion table shows commission overtime due for 7 weekly commission amounts at $18.00 per hour and 48 hours.
| Weekly Commission | Commission per Hour | Adjusted Regular Rate | Commission OT Due | Total Compliant Pay |
|---|---|---|---|---|
| $100.00 | $2.08 | $20.08 | $8.33 | $1,044.33 |
| $250.00 | $5.21 | $23.21 | $20.83 | $1,206.83 |
| $400.00 | $8.33 | $26.33 | $33.33 | $1,369.33 |
| $600.00 | $12.50 | $30.50 | $50.00 | $1,586.00 |
| $800.00 | $16.67 | $34.67 | $66.67 | $1,802.67 |
| $1,200.00 | $25.00 | $43.00 | $100.00 | $2,236.00 |
| $2,000.00 | $41.67 | $59.67 | $166.67 | $3,102.67 |
What is Commission-Adjusted Overtime Calculator?
A Commission-Adjusted Overtime Calculator is a tool that adds the overtime owed on commission earnings for non-exempt employees.
Commissions are part of the regular rate under 29 CFR § 778.117. A non-exempt salesperson who works overtime earns 1.5× on base pay plus an extra 0.5× on the hourly value of commissions.
Retail and service employees can be exempt under Section 7(i) of the FLSA when the regular rate is more than 1.5× the minimum wage and over half of pay comes from commissions. Workers outside that exemption need this calculation.
What are the uses of Commission-Adjusted Overtime Calculator?
There are 4 main uses of the Commission-Adjusted Overtime Calculator.
Inside sales staff
Call center and showroom workers check overtime on commissions.
Commission true-ups
Payroll adds overtime when monthly commissions are paid late.
Pay plan design
Sales leaders model overtime cost under new commission plans.
Wage disputes
Employees compute overtime missing from commission checks.