# What is time and a half?

## What is time and a half?

Time and a half basically mean the increase in the rate of the hourly wage of an employee. As the name indicates time and a half it is usually calculated as the hourly rate multiplied by 1.5, the normal rate, and 0.5 is extra for working on hours or days which are supposed to be off. The “half” is also known as the overtime premium. Employees who do not qualify for exemption are called nonexempt. If a non-exempt employee works overtime, they must be paid time and a half. Now, this can also benefit the employees as well not only are they getting 50 percent more for what they are doing but also it gives them a chance to shine and prove yourself in front of the boss. Not everyone is asked to stay after hours only some are asked and then they really have a chance to prove themselves.

How to calculate time and a half

An employee earning \$8 per hour is required to work 41 hours this week. The employee will earn \$320 for the first 40 hours 8 times 40 plus 12 150% of 8 for the 41st hour – for a total of \$332. The total can also be computed as 41 hours times the straight-time rate of \$8 = \$328 plus the \$4 overtime premium (the half of \$8) for a total of \$332.

When does time and half apply?

• Time and half apply when an employee exceeds the number of hours he is supposed to work in a week which is usually 40.
• Working on off days like Labor Day, Quaid Day, Independence Day or any other nationally accepted holiday.
• Coming to work on any religious occasion. It can be any religion. But, if it is an event or an occasion and you have to come to work it will be paid in time and a half.
• Some organizations have a policy where they practice if an employee works more than 8 hours a day he/she shall be given overtime instead of more than 40 hours a week.
• Time and half, overtime pay, holidays are a very important factor of any organization to grow especially to maintain a good and healthy relationship between the employees and the employer.