Gross pay calculation under 2026 FLSA rules
Gross pay is the total amount earned before any taxes or deductions. For hourly workers, it is the sum of regular pay plus any overtime or premium pay earned in the pay period.
FLSA regular rate of pay is the foundation for overtime calculations and must include all forms of hourly compensation including non-discretionary bonuses, shift differentials, and production bonuses. It does NOT include discretionary bonuses, overtime premium payments, reimbursements, or gifts.
State overtime rules vary. California requires daily overtime after 8 hours (1.5×) and double-time after 12 hours. Colorado also has daily overtime provisions. Nevada, Alaska, and some others have additional state-specific rules. Always verify your state's requirements when calculating gross pay for employees.
To convert this gross pay to net take-home, use the Hourly Paycheck Calculator. To calculate the full employer cost including FICA matching, FUTA, and workers comp, use the Employer Tax Calculator.