According to FLSA (Fair Labor Standards Act) certain categories of earnings must be used in the calculation of an employee’s overtime rate of pay. Any Additional Pay payments that are eligible to be included in an Annualized Comp Rate Code (ANN, CAL, CYF or 21P) employee’s overtime rate of pay will be automatically factored into the overtime calculation. Employees with a Comp Rate Code of HRY who receive an Additional Pay payment that must be included in the employee’s overtime rate of pay, must be entered manually via a Time Entry overtime Adjustment Code. Please refer to the Agency Action section of the Payroll Bulletins for additional guidance.

If an overtime override earnings code is used these earnings MUST be factored into the manual calculation. For example: An employee in a CSEA BU02 represented position worked 10 hours of overtime on 01/01/2025. The employee questioned their overtime rate. Effective 01/01/2025, the employee’s annual salary is $60,000 and they are receiving Location Pay (Additional Pay Earnings Code LOC) at an annual rate of $3,000 which must be included in the calculation of overtime. Therefore, their overtime rate on 01/01/2025 is manually calculated as follows:

$60,000 (Annual Salary) + $3,000 (LOC) = $63,000

$63,000 * .00072 (CSEA Overtime Factor) = $45.36/hr

Additional payments factored into the calculation of overtime include:

Last Updated: 06/30/2025