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Commission-Adjusted Overtime Calculator

Include applicable commission earnings.

Adjustments & Premiums

Commission-Adjusted Overtime Calculator

Calculated Result
Total Compliant Pay$1586.00
Base Pay + Commission$1536.00
Overtime Due on Commission+$50.00
Adjusted Regular Rate$30.50/hr

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.

  1. 1Enter the hourly wage

    Type the base wage, $18.00 by default.

  2. 2Enter total hours

    Add all hours worked in the week, 48 by default.

  3. 3Enter commissions earned

    Type the commission for that workweek, $600.00 by default.

  4. 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 CommissionCommission per HourAdjusted Regular RateCommission OT DueTotal 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.