Time and a half refers to an increased rate of pay typically reserved for hours worked overtime, or those that exceed the 40-hour work week. Overtime pay policies vary between companies, time and a half being a common rate. It simply means that in addition to the employee’s standard hourly rate, they will get paid an additional one half of that rate for each hour worked in the time and a half window.
To calculate time and a half:
Time and a Half Rate = Hourly Rate x 1.5
What does time and a half mean for employers? Although it means that they will be surrendering more to payroll, they are also giving acknowledgement of the value of their employees’ time and incentivizing hard work – both marks of a good employer.
Employers: Make sure your payroll is managed accurately with these 4 quick tips.