How do you calculate overtime pay in Idaho?

Calculating overtime pay in Idaho follows federal guidelines under the Fair Labor Standards Act (FLSA) to ensure employees are fairly compensated for extra hours worked.

This guide will explain the steps for calculating overtime pay, explain who qualifies, and outline key exemptions to help employers and employees navigate Idaho’s overtime requirements.

Which Overtime Laws Apply in Idaho?

Idaho does not have a state-specific overtime law. Instead, the state follows the federal overtime regulations under the Fair Labor Standards Act (FLSA), administered by the U.S. Department of Labor (DOL).

Under the FLSA, non-exempt workers are entitled to an overtime compensation equal to 1.5 times their regular rate of pay for any hours beyond 40 in a workweek.

Employers in Idaho are subject to legal consequences if they fail to comply with federal rules.

How Much is Overtime Pay in Idaho?

In Idaho, overtime pay is calculated at a rate of one and a half times (1.5x) an employee’s regular hourly wage for each hour worked over 40 in a workweek.

For example, if an employee earns $15 per hour, their overtime rate would be $22.50 per hour ($15 x 1.5) for each hour worked beyond 40 in that workweek.

To learn more, check out our guide on Idaho Overtime Laws. 

Who is Eligible for Overtime Pay in Idaho?

Eligibility for overtime pay in Idaho primarily depends on whether the employee is classified as “non-exempt” under the FLSA. Most hourly workers are considered non-exempt and are thus entitled to overtime pay. This includes:

• Employees who work over 40 hours a week.
• Employees who are paid on an hourly basis.

Certain salaried employees can also qualify for overtime if they earn below the salary threshold set by the Department of Labor, which is, as of July 2024, $844 per week (equivalent to $43,888 annually).

Check out our guide on Overtime Rights in Idaho.

To calculate overtime for hourly employees in Idaho:

• Determine the regular rate of pay for the hourly employee: This is typically the employee’s standard hourly wage.
• Calculate the employee’s overtime rate: Multiply the regular hourly rate by 1.5. For example, if the employee’s hourly rate is $18, the overtime rate would be $27 ($18 x 1.5).
• Identify the overtime hours worked during the week: All hours worked beyond 40 are considered overtime hours. If the employee worked a total of 48 hours in the week, the overtime hours would be eight (48 hours – 40 hours).
• Calculate the overtime pay: Multiply the overtime hours by the overtime rate. Using the example above, if the overtime rate is $27, the employee would receive $216 for the eight overtime hours ($27 x 8).

Read our guide on Your Rights as an Hourly Employee in Idaho to learn more.

To calculate overtime for salaried employees in Idaho:

• Determine the weekly salary of the non-exempt salaried employee: For instance, if the employee earns $830 per week.
• Calculate the regular hourly rate: Divide the weekly salary by the number of hours the salary is intended to cover. If the weekly salary is based on a 40-hour workweek, the regular hourly rate would be $20.75 ($830 ÷ 40).
• Calculate the overtime rate: Multiply the hourly rate by 1.5. In this example, the overtime rate would be $31.13 ($20.75 x 1.5).
• Identify the overtime hours worked during the week: Subtract 40 from the total hours worked to find the overtime hours. If the employee worked 50 hours, the overtime hours would be ten (50 – 40).
• Calculate the overtime pay: Multiply the overtime hours by the overtime rate. For this example, if the overtime rate is $31.13, the employee would receive $311.30 ($31.13 x 10).

Check out our guide on Your Rights as a Salaried Employee in Idaho.

To calculate overtime for commission employees in Idaho:

• Calculate the total earnings of the week: Add up all commissions and any base salary earned during the workweek. If the employee’s base pay is $630 and received $200 in commissions in a single workweek, the employee earned a total of $830 for that week.
• Determine the regular hourly rate: Divide the total weekly earnings by the number of hours worked. For example, if a commission employee earned $830 and worked 50 hours, the regular hourly rate would be $16.60 ($830 ÷ 50).
• Calculate the overtime rate: Multiply the regular hourly rate by 0.5. In this case, the overtime rate would be $8.30 ($16.60 x 0.5).
• Identify the overtime hours: Subtract 40 from the total hours worked to find the overtime hours. If the employee worked 50 hours, the overtime hours would be ten (50 – 40).
• Calculate the overtime pay: Multiply the overtime hours by the overtime rate. For example, if the overtime rate is $8.30, the employee would receive $83 for the ten overtime hours ($8.30 x 10).

To calculate overtime for piece rate employees in Idaho:

• Calculate the total weekly compensation: Add up the total compensation the employee earned for all units produced during the workweek. For example, if the piece rate worker completed 1,600 units for $0.50 each, the employee will receive $800 (1,600 x $0.50).
• Determine the regular hourly rate: Divide the total weekly earnings by the total number of hours worked. For example, if the employee earned $800 and worked 50 hours, the regular hourly rate would be $16 ($800 ÷ 50).
• Calculate the overtime rate: Multiply the regular hourly rate by 0.5. In this example, the overtime rate would be $8 ($16 x 0.5).
• Identify the overtime hours: Subtract 40 from the total hours worked to find the overtime hours. If the employee worked 50 hours, the overtime hours would be ten (50 – 40).
• Calculate the overtime pay: Multiply the overtime hours by the overtime rate. Using the example above, if the overtime rate is $8, the employee would receive $80 for the ten overtime hours ($8 x 10).

The statute of limitations for claiming unpaid overtime in Idaho is influenced by both federal and state legislation.

According to the FLSA, employees may submit a claim for unpaid overtime within two years of the violation. If an employee is found to have willfully violated the overtime provisions, the statute of limitations is extended to three years.

In addition to federal standards, Idaho has its Collection of Wages regulations (Idaho Code § 45-614). The state regulations allow employees to file claims for unpaid wages, including overtime, within two years of the violation. This aligns with the federal statute, allowing employees to pursue their claims.

Employees may file complaints with the U.S. Department of Labor’s Wage and Hour Division (WHD) or the Idaho Department of Labor.

Idaho employers must follow federal and state recordkeeping laws to ensure compliance with overtime regulations. These requirements ensure transparency and accurate tracking of employees’ work hours and wages. The list of records an employer must maintain includes:

• Employee information
• Work hours and wages
• Payment details
• Dates and pay periods

Under the FLSA, employers must retain payroll records for at least three years and wage computation records for at least two years. Idaho law goes further, requiring employers to keep payroll records for at least four years.

If payroll checks remain unclaimed or uncashed, they are considered unclaimed property after one year. Under the Unclaimed Property Act, employers must:

• Make a good-faith effort to locate the employee and notify them of the unclaimed wages.
• If the owner cannot be found, report and transfer the funds to the Idaho State Treasurer’s Unclaimed Property Division.
• Comply with annual reporting requirements to ensure compliance with state laws.